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A sample review sheet
This is what comes back when you send a lease offer. The owner, the company, the county and the offer are all made up.
Lease review sheet (sample, made up)
Top three asks
- Royalty on gross proceeds, with no post-production deductions.
- A Pugh clause, for land and for depth.
- Narrow the warranty to "by, through and under" the owner.
- Royalty3/16 of oil and gas, valued "at the well".Ask aboutAsk for: Keep 3/16, and value royalty on gross proceeds at the point of sale.
- Post-production costsNothing on costs after the well.MissingAsk for: Add: no deductions for gathering, compression, treating, processing, transportation or marketing.
- BonusPer net mineral acre, paid by a 60-day draft.Ask aboutAsk for: Lease void if the draft is not paid. No recording until it is.
- Pugh clauseNone.MissingAsk for: Release land outside producing units, and depths below the deepest producing formation, at the end of the primary term.
- Primary termThree years, with an option to extend two more.Ask aboutAsk for: State the extension payment and its due date, and require written notice before the term ends.
- PoolingUnits as large as a regulator allows.Ask aboutAsk for: Notice and a plat of any unit, and a recorded unit designation.
- Shut-inYearly payment per acre, no time limit.Ask aboutAsk for: No more than two years in a row, and a set due date.
- DepthAll depths during the term.NormalAsk for: Fine during the term, once the Pugh clause above adds a depth release after it.
- WarrantyGeneral warranty of title.Ask aboutAsk for: "By, through and under" the owner only. These minerals were inherited.
- SurfaceThe form's general right to use the surface.MissingAsk for: Notice before entry, damage payments, restoration, and no pads near the house.
- AssignmentCompany may assign; owner changes bind once papers are received.NormalAsk for: Add written notice to the owner of any assignment.
- SignaturesOne owner line, notary block, Exhibit A attached.NormalAsk for: Exhibit A matches the deed description.
A landman's read of the words on the page. Not legal advice and not a title opinion. Every name, place and figure on this sheet is made up.
How to read it
Normal means the term is common and fair as written. Missing means something owners usually ask for is not there. Ask about means the term is there but worth asking to change.
The top three asks come first, because most owners only push on a few points. The rest is there so you know what you are signing.
Want one for your offer?
Tell us what you got and what you want to know. We reply by email and tell you how to send the pages. A landman reads them and sends back a one-page review sheet.
Email hello@landman.review with what you got and your question, or call (307) 263-8515.