Becoming An Oil And Gas Landman – Part 3

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Your next step is to contact the owner or owners of the mineral property and make them an offer based on the terms you were given by the company. If your offer is accepted, no further negotiations are needed and you are ready to prepare the oil and gas lease for signature. If the offer isn't accepted, you will need to go back to your company and see if they want to up the terms of their offer. Some negotiations can last for months and sometimes you will not even be able to come to an agreement. This happens rarely because the mineral owner isn't losing any piece of his land by leasing, but some individuals will hold out thinking they can get more money. Just remember, a well can still be drilled even if you aren't able to lease every part of the section(s).

Once you have agreed to the terms of the mineral lease, you will need to get started preparing the oil and gas lease. Most states have pre-printed lease forms that can be used. There are also software programs available so that you can do all the typing work on your computer. You can find these programs available on the internet or by talking to other landmen in your area. There are a few blanks on each form that needs to be filled out such as name, address, lease terms and royalty amount.

After preparing the lease, you will then need to prepare a draft for the dollar amount due the mineral owner. This draft will be paid by the company you work for through the mineral owners bank within fifteen days. You can mail the lease or draft or personally visit the mineral owner if they live close enough to your location. It is always better to see the owners in person if possible because of any additional questions or concerns they may have.

Once the lease has been properly executed and witnessed, you will prepare reports to be turned in along with the original lease to your company and a copy of the prepared draft. You will then want to go back to the county or parish clerks office to retrace your steps in mineral ownership title in order to make sure your work is correct before the draft is paid by your company's bank.

There are many other details other than the steps outlined in this book, but this should give you an overall view and the knowledge to prepare you for training or being trained by a company. This book gives you a good idea as to what is involved in becoming an oil and gas landman in the petroleum industry which can be a very lucrative and rewarding career.

For more information on becoming an Oil And Gas Landman, plesae visit:

http://www.LandmanCourse.com

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Source by John Peyton

Originally Published Here: Becoming An Oil And Gas Landman – Part 3