Negotiating a Good Lease – The lease agreement is the most important document that the mineral owner (lessor) will sign since it specifies the actual terms and conditions that will govern the relationship with the lessee. We will review the terms of the lease, what is adverse to the Lessor and what clauses the Lessor wants in a lease agreement. We will review the rights and responsibilities of the lessor and the lessee, who is entitled by law to sign a lease, legal requirements of a valid lease, implied covenants of the lease, clauses & terms that are favorable to lessees, surface agreements, water rights, pooling, and how to negotiate a good lease agreement. We will learn what the lessor must know and how to communicate with the lessee. An even “playing field” makes it much easier and is very beneficial for the lessor.
The Unleased Mineral Estate – Various alternatives are reviewed in dealing with unleased minerals. The unleased mineral estate, frequently a non-producing asset, can be turned into an income producer.