Laramie County, Goshen County and Platte County are experiencing a boom in oil and gas drilling and leasing activity. Several exploration and drilling companies are combing the area and obtaining leases from mineral owners. Many mineral owners believe that these oil and gas leases are non-negotiable. However, just as in any other transaction, the bonus payment, royalty amount, and other terms of oil and gas leases are negotiable to some extent. Specifically, the form of most leases offered to mineral owners can be improved upon to minimize legal pitfalls and maximize potential profit for the mineral owner.
In addition to mineral leasing, oil and gas production companies are starting the permitting process to begin producing the minerals that they have under lease. These companies and their agents are approaching landowners with proposed seismic testing permits for geophysical testing and surface use agreements which govern the use of the landowner’s property for mineral drilling and production. As with any contract, these agreements are negotiable, and their terms should be designed to protect the landowner’s surface interests throughout the mineral production process.
If you feel the terms of an offered lease, seismic testing permit, or surface use agreement are unfavorable to you, if you are intimidated by the negotiation process, or if you simply do not understand the terms of these agreements or the long-term consequences of such agreements, please contact Lindsay Woznick, John Metzke, or Dale Cottam of our office. Hirst Applegate, LLP has extensive experience in negotiating oil and gas leases, seismic testing permits and surface use agreements, as well as handling other types of real estate transactions for Wyoming landowners.
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POSTED BY BILLIE LM ADDLEMAN AT 6:40 AM