If you are planning to do some negotiations because you want to enter the oil and gas business, there is really a need for you to understand the procedures of the leases. You need to understand the procedure because as the owner of the land, you do not want to end up getting a very small value of share. You do not want to see the company getting all your oil and gas and pay you a small amount. You have the rights as the owner to be respected by other parties and you also need to respect their rights. With this, it is important to find landmen brokers who will handle the negotiation.
The role of the landman is that he will be the one to represent the production firm. As an industrial broker, he will take care of the area research. Hence, he will come to you to search the area just to know what it can offer. Definitely, this has to be done with your consent. It is very important for you to remember that aside from the area research, he will also be responsible for the lease ownership concerns.
You need the presence of the landman broker because he will be the one to clarify that you have full ownership of the surface area and the minerals found on it. Since there can be some individuals or companies interested in the joint venture, the landman is the one to show to them the set of rights for them to understand. He will also be the one to recommend to you some people who are very willing to go into an agreement. Once it happens, oil and gas leases can be made possible.
As a landowner, you need to check the terms to be used for leasing because that will be your binding agreement with the other party. The courts worldwide will also honor them. If you think that there is something wrong on the leasing agreement, you can negotiate for it to be revised. Both parties must come together in agreement whatever things you want to be revised. Negotiation happens if you want to set the business but there must be research to be done and it should be backed up with facts. Before any party would come to the negotiation table, he must have made his own research. He must be represented by a legal counsel who will counter-check all the facts taken.