Tulsa sits at the heart of Oklahoma’s energy economy, which means mineral owners often field lease proposals from exploration companies. A well-structured contract preserves the property’s long-term value while delivering fair compensation.
Royalty math and bonus money
Cash up front may look generous, but the royalty clause usually drives a deal’s true worth. Compare offers against prevailing percentages reported by local practitioners and review how deductions for post-production costs can erode revenue. Confirm the calculation method (at the wellhead or at the point of sale) to avoid surprises.
Primary term, extensions and shut-in clauses
Most leases include a primary term for exploratory drilling and a secondary term tied to “production in paying quantities.” Nail down when the clock starts, how shut-in payments keep a lease alive and what milestones trigger automatic release.
Surface use and reclamation
Even if only minerals change hands, rigs, tanks and roads still touch the surface. Spell out where equipment may sit, how topsoil will be stored and the timetable for restoring pasture or crops once work wraps up.
Liability allocation and default remedies
From fluid spills to wind-blown debris, accidents happen. The lease should require the operator to carry indemnity coverage, detail cleanup responsibilities and grant you the right to cure defaults if the company fails to act. Risk-sharing strategies can be discussed with industry professionals to ensure that your contract meets industry standards and is, at least, comparable to local practice.
Regulatory compliance and environmental safeguards
Operators must meet Oklahoma Corporation Commission rules and federal statutes such as the Clean Water Act. Incorporate language mandating adherence to all laws and reserve audit rights so you can confirm compliance.
A lease that balances fair royalties, tight timelines, clear surface protections, robust liability terms and strong compliance language will serve both parties well. By vetting each provision up front, Tulsa landowners protect their acreage and their bottom line for years to come.