Landowners across Kansas are often contacted with proposals from the oil and gas industry regarding the use of their land for drilling wells. It’s at a time like this when you need to have patience, because if you rush into an oil and gas agreement without having all the facts you could be missing out on money and opportunities you weren’t aware of.

The reason you’ve been contacted by the company is because they believe they will find oil or gas on your property, and as the landowner you’re entitled to share in the profits from the excavation of minerals on your property. You may not have known or been interested in your mineral rights as a landowner up until this point, but an Oil, Gas and Mineral Lease agreement can be a very lucrative opportunity if negotiated correctly.

These agreements between landowners and the oil and gas industry have existed for well over a hundred years and usually include an upfront payment plus a royalty percentage of the value produced thereafter. It’s entirely possible that after signing such an agreement that no drilling will ever occur, but that will be up to the company you sign the lease with. NOTE: Beware of the “Standard Lease Agreement.” There is no standard lease agreement, other than what has been formulated by the company soliciting you for their benefit. It is always advisable to exercise caution and review the details of the Agreement with counsel.

Step One: Determine Who Exactly Is Contacting You

The initial person who contacts you regarding an oil and gas lease agreement could be any one of a number of different types of interested parties. Your job is to determine exactly who it is and what their role is in the transaction. In any case do not sign anything without doing your due diligence.

  • Contract Leasing Agent/Broker – agents and brokers are independent contractors working for the oil company or land brokerage firm. They are incentivized on getting the best deal for their company.
  • Employee of the Oil Company – Oil companies will sometimes have their own landmen pursuing new leases.
  • Entrepreneur or Middleman – As is sometimes the case, entrepreneurs will sometimes set out to negotiate lease agreements for themselves or their companies with the intention of reselling the agreement to another company later.

Step Two: Research the Parties Involved and Local Drilling Activity

Now that you know who has contacted you and what his/her role is, you need to do some research into the matter to be sure you go into negotiations armed with the most information possible. Some important things you’ll need to research on the Internet and through local media are:

  • The name or names of the people who have contacted you
  • The name of the company interested
  • Any recent articles on local drilling activity
  • Any other wells in the local vicinity

Step Three: Gather Your Paperwork

Now that you know a bit more about the interested parties and any other drilling efforts in the area, you’re ready to gather up your paperwork to cover all your bases. Locate all documents related to mineral and surface ownership – deeds, wills, leases, easements, ratifications, mineral or royalty conveyances and any other pertinent documents. The more prepared you are, the smoother negotiations will be.

Step Four: Consult an Attorney

In a matter of such importance, it’s obviously a good idea to have experienced legal representation to assist you in the negotiation process. Once signed, a lease is a binding document, so remember that you should not sign anything without having an experienced attorney assisting you.

If you’ve been contacted by the oil and gas industry concerning your landowner mineral rights, contact Oswald Law today at 1-800-894-5931 today to schedule a free consultation.

About Us

Whether you need a bankruptcy attorney, DUI lawyer, criminal defense attorney, divorce attorney—or assistance with estate planning or contracts—we have extensive legal knowledge to help you resolve your legal issue.

Get the treatment you deserve from an experienced team working diligently on your case. We are your advocates, tirelessly fighting for your best outcome.

Recent Posts

Important Things to Know About Child Custody Laws in Kansas

When you have separated from your partner, you may disagree on many things. But one thing which still unites you is wanting to do what you feel is best for the child or children you share. Just because your relationship is no longer viable doesn’t mean that either of...

A Guide on How to File Bankruptcy in Kansas

Declaring bankruptcy sounds overwhelming and scary, but it’s often the only option left for those who are in a difficult financial situation. To help inform you, we’re going to discuss how you can declare bankruptcy and also explain what you should expect when you do...

Be Prepared with this Child Custody Mediation Checklist

Child custody is probably one of the toughest parts of a custody dispute or separation process, but a successful mediation can make it a little bit easier on you, your co-parent, and most importantly, your child. We put together a child custody mediation checklist so...

A Look at the Pros and Cons of Filing Bankruptcy

Bankruptcy is your chance at a financial fresh start. We will take an honest look at the pros and cons of bankruptcy so that you can hopefully enter the process with some valuable peace of mind.  The Pros Of Bankruptcy Although bankruptcy isn’t the most positive thing...

The Estate Planning Checklist: Do You Have Everything in Place?

Estate planning is important, particularly for those who own real estate. We have provided an estate planning checklist below, but let’s talk a little more about why it is important to be prepared. Estate planning allows you to make decisions about what will happen to...

Call For a FREE Consultation

Get a winning team to fight for you when it matters most. Call us today!

Get a winning team to fight for you when it matters most.
 Call for a Consultation:

(620) 662-5489

Call Today! (620) 662-5489

330 West 1st Avenue
Hutchinson, KS 67501

Practice Areas

Attorneys

Blog

FAQ

Contact