Definition - What does Landman mean?
A Landman, also known as a leaseman is an individual, a group of people or a business entity that leases land and obtains oil-drilling rights for its use. They negotiate and acquire all types of royalty interests, overriding interests, mineral interests, and surface rights from the oil and gas royalty owners. They are also tasked with the duty of analyzing producing wells on a lease.
Petropedia explains Landman
Before any drilling operations take place on any oil and gas lease, the organization has to gain the ownership of owning the mineral rights on this oil and gas lease. These minerals could be oil, gas, coal, or any other tradable mineral on stock exchange. Since these minerals are below the properties owned by royalty owners, it is a law in United States that the royalties needs to be paid to royalty interest owners as per their royalty percentages.
The duty of a landman is to purchase and acquire these mineral rights from the royalty interest owners. They bridge the gap between oil operators and the landowners, effectively serving as the proverbial middleman between oil operators (stakeholders) and landowners.Landowners are sometimes hired by energy companies, but most of the times these are the independent players/contractors with the suffix name as minerals and royalty acquisitions.