Incredible Facts on Gas and Oil Landsmen
It is worth stating that there are landsmen that work for coal companies, timber companies and other mining companies but the most common case is where the landsman will work for a gas and oil company and before oil or gas is drilled landman has to be sought from the area to be leased and they negotiate a deal with the property owners. The landman helps to work out a deal that involves a lot of royalty and upfront lease payment that the landowner will receive and oil and gas landmen need to have a detail oriented and perform proper research since even little errors in the contract can result in losses amounting to millions.
Landmen have to be people-oriented to assure property owners that they have their interests in mind and they are in a way like salespersons that involves selling the idea of signing a lifetime gas and oil lease to some landowners that might be skeptical about the whole deal and they must be aware of the many competing offers and have excellent negotiation skills to land the business deal. The truth is that oil and gas landmen utilize a lot of time pouring over old records in courthouse archives searching databases and other information sources to track down the rightful owners of mineral rights which are a complicated process because at times minerals below or above a certain depth may be owned by other people or leased by other oil firms.
In a hot exploration area the landmen may spend hours waiting for documents whereas other landmen are using them and they may also negotiate with both mineral right owners and those who just own the surface mineral rights have to be compensated for damages. It is undeniably true that the gas and oil industry is seasonal thus there are bust and boom periods like in the year 2008-2009 but in good times an experienced landman can make at least four hundred dollars in a day.
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There are various types of oil and gas landman jobs such as a company landman that work full time for oil and gas companies and they may perform much of their job at the company headquarters and a company landman may be a lawyer or they may work in close cooperation with one. Apart from negotiating on land leases for drilling they also negotiate deals with other gas and oil firms, draft contracts and make sure that all parties comply with the contract terms and conditions and that all the stakeholders also follow state and federal rules and regulations.Incredible Lessons I’ve Learned About Options