Why Should You Hire Hayes Legal Solutions, PLLC To Assist with Oil & Gas Matters?
Oil and Gas companies often tell you their forms are standard industry forms. However, what they fail to disclose is the forms are written for their benefit and a lot of the terms are negotiable. Once, the oil and gas wells start producing your minerals can be under lease for a long time and your legacy can be negatively impacted by certain lease provisions. Alternatively, if you have an attorney on your side helping you navigate these issues, you can create a mutually beneficial relationship between you and the oil company, which will add value to your legacy.
I have worked as a commercial negotiator for oil and gas companies for over 14 years and know how things work from both the business and legal sides. As such, I have a strong knowledge base to help you come up with solutions to your oil and gas scenarios that will help you mitigate the risk of future disputes and give practical advice that has a positive result for your legacy.
Things to Think About When Negotiating an Oil & Gas Lease
- Who is the company leasing my minerals and what is their history of drilling wells in the area?
- What depth/formation is the company targeting?
- Does the lease allow other formations to be developed later?
- Does the lease have penalties if royalty payments are not timely paid to me?
- What happens if the company operating a well on my property files for bankruptcy?
- Does the lease have a depth severance provision?
- Do you know what terms your neighbors were offered?
- What is a drill site with horizontal drilling?
- Do you know what the drilling plans are for the company?
- Does the oil and gas company need my consent prior to assigning the lease to another company?
- Do I need a continuous development provision?
- Do I need a force majeure clause?
- When do I get shut-in royalty payments?
- What are oil and gas processing fees?
- Is it better to get a higher bonus amount or higher royalty?
- Do pandemics give oil and gas companies a reason to shut-in production or not to make royalty payments?
- What are offset well obligations?
- What does it mean to be force pooled in Oklahoma?
Note, this is not an exhaustive list of things to be considered when negotiating an oil and gas lease.
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