Replies to This Discussion

Permalink Reply by Buck Chitawa on October 6, 2011 at 3:56am

Thanks for the informative list of terminology, Finnbear...

While I agree this list is generally accepted as accurate, the potential exists for "the other side of the table" through slick, clever & crafty wording of clauses, addenda or outright redefining any terminology in a contract, these terms will be defined by what you agree to with your signature on a contract.

You indeed can sign a contract that says "red is really blue" and as long as no laws are broken (and an inaccurate or wrong definition in terms doesn't break the law if you agree to it), your signature will bind you to such folly.

A good attorney is expense because they are worth it. Get one to tell you what your contract terms really are before you sign...

Permalink Reply by Finnbear on October 6, 2011 at 6:15am

The list was simply put forward as a means for landowners to begin to familiarize themselves. One should never sign an oil and gas lease without understanding 100% of it. If you cannot come to a full understanding on your own, then you must hire someone who can explain to you what you are getting into. These leases are simply business contracts that can involve hundreds of thousands (and potentially millions) of dollars. You would not sign any sort of business contract without having a contract law specialist look it over and you should not treat an oil and gas lease as anything other than a high dollar business deal.