When you are considering negotiating a lease on your mineral estate it is important that you know what you are getting into. Having proper knowledge and patience is vital to negotiating oil and gas leases. There are many ways that you can become more educated on the process, as well as some tips on what to avoid when entering into a mineral lease.
Negotiating a Mineral Estate Lease
As you already know, making the decision to lease your mineral rights is a big step. We want to give you a couple of tips and things to consider before you sign a deal:
- Don’t be overly eager –Properly negotiating gas leases is a timely endeavor and takes a lot of patience. Price is also not the only thing you want to focus on, you should also be aware of your surface rights and negotiate terms on surface usage just as much as negotiating on price.
- Take your time before signing – A lot of time should go into not only making the decision to lease your mineral estate, but also in the negotiating process as well. You shouldn’t sign anything until you are 100 percent sure you understand the terms of the contract. Once signed, the lease is a legally binding document and you can no longer change anything, so be sure you are comfortable with the terms.
- Consider several offers – If one company is interested in your property, there is a good chance that others may be as well. You can take the offer that one company gives you and use it to approach other companies to see what they may offer. Competition will help you get better offers and better terms.
- Hire an attorney – Since a mineral estate lease is a legally binding contract it is important to get an attorney. Having someone experienced in mineral rights is also important as they can see through holes in a contract and help you in drawing up contracts and coordinate negotiations. Everything should be in writing and an attorney can help make sure you understand all the terms and conditions.
Do Your Homework
Negotiating terms for a mineral estate lease can be overwhelming and confusing, but understanding a few of the steps and getting a professional involved can help simplify the process. Take your time and make sure you understand what entering into a lease means for you and your property. Just having a little prior information and doing your homework can make you more comfortable when negotiating your mineral estate lease.
If you have any questions about the process of leasing mineral rights, contact us today for more information! Flat Iron Energy is always happy to help with the process and we can ensure that you get the best deal possible.