Oil and Gas Landmen: A Guide
The oil and gas industry is one the most lucrative employment sources. It is a great place to be in because although the economy may be experiencing problems on various sectors, the price of oil and gas has started to rise again. With the strengthening economy and overseas growth making this industry a very competitive one, there is a great opportunity for people to learn and stay in this field. Many of the richest oilmen in the country began as landmen and learned the ropes first before going on to become millionaires.
An oil and gas landman is basically the person who checks the title of the land where an oil company is interested in drilling a well, and leases the land. Landmen do the research to find out who owns the minerals on a certain plot and then contacts this individual about signing an oil and gas lease. The terms for the lease will be given by the company they work for.
A geologist will study graphs and seismic data to determine a good place where oil and gas can be found in the ground. After the
have been given a map of the land, he will go to a courthouse or abstract office in the county or town where the land is located to get a list of the area's landowners. He will then contact the landowners to verify if the land is already leased. This can also be done by running the names in the registry to check if a lease has already been recorded.
After finding the landowners and verifying that there is no lease, the landman will then trace the history of land ownership to make sure that there are no mineral reservations on the property. The mineral owner and land owner can be two completely different people. The landowner owns the surface of the land, while the mineral owner owns the mineral on or underneath the land. The landman should make sure that the landowner is also the mineral owner. Otherwise, the landman will have to work with both landowner and mineral owner to get a lease for a drill site for a well.
Once all of these is done, the landman can start the leasing process. The landman will contact the owner or owners to make them an offer based on the terms given by the company he works for. If the offer is not accepted, the landman will have to go back to the
company to know if they are willing to negotiate their offer. Some negotiations can last for months and sometimes an agreement may not be possible. Once the offer is accepted, the landman will then prepare the lease.