Snakes in the Oil Patch - Tips and Tricks for Leasing

Have you been approached to lease your mineral rights and wonder what kind of tricks the oil company is trying to pull? You are not alone. The oil and gas company is betting that you don’t know half of what they know, and they will try to get every penny of value out of your mineral rights.

Maybe they gave you a lease to look over. Looks simple enough…only 2 or 3 pages, right? If you’re lucky, they will provide a pre-approved “Addendum” with a couple of terms that are actually friendly to you. At least, they will appear that way.

There is a reason their form is only 2 or 3 pages. Whereas most States, Trusts, sophisticated mineral holding companies, and other pros will use their own 10+ page lease. What could those extra pages have that the oil company’s lease doesn’t have? Well, pretty much every term that is advantageous to you.

Visit our Earth Resource Learning Lab (ERLL) for a guide on their tricks, and our tips, on oil and gas lease negotiation. Visit: https://ergf.org/oil-and-gas-lease-help to learn more. You will find a brief overview of some of the more common lease provisions, and what you should be asking for. It may also be prudent for you to consult and oil and gas lawyer familiar with the area, if your means allow.

And, if you prefer to just be done with the headache, their games, and wondering how they will “getcha” next (and they will certainly try, even after the lease is signed), consider donating your mineral rights to ERGF! We deal with this stuff all the time and are aware of their games and tricks.

ERGF is a 501c3 non-profit organization. Your donation may be tax deductible as allowed by law. Every tax situation is different.