DougM
Gold Member
Just think that anyone that comes to your door wants to Make MONEY off of YOU
Oil and gas lease?
- Thread starter mudcat47537
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MacLawn
Veteran Member
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- Aug 1, 2007
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- JD 2210
Amen, brother!! That goes for email, phone calls too! Somebody invading me in any form, I view it as they want a fund transfer - from me to them! It ain't gonna happen! YOU do the shopping, mud. YOU initiate a contract with a gas/oil/land usage lawyer. That's all I know. And I don't even know that personally, just common sense. Protect yourself, your land, and what's on and under your land! I reckon a person can still do that in America.
Fastowl
Bronze Member
- Joined
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- Texas Hill Country, TX
- Tractor
- 1980 JD 2240; 2018 JD 5075E; 2011 Bobcat S650; 2019 Kubota RTV 1140
Been in the energy business for 35 years here.
In addition to what has already been said, first get an attorney to look at the lease when you get close.
Other things:
Make sure you are covered for surface damages. Repair of fences, roads, disruption of water wells, animal injuries, etc.
Is the option without any additional payments? Need some more money here.
Most of the shale leases are three years. You are probably over the New Albany which is not as prolific as some of the 'big' name plays but shallower than most. You might ask about the target zone and lease only from the surface to that zone and hold back deeper rights.
The percentage royalty payment is also low compared to what is going on in other major plays; more like 25%. But again the area is not known (yet) to be as prolific.
There are lots of websites out there on shale plays with a orientation towards royalty owners. Do a search on that.
Be careful of how the royalty payments are calculated. Some of the shadier operators have separate companies to gather and process their crude and natural gas (nothing wrong with that) but charge excessive fees (that is where the problem comes in). Make sure you have right to audit the accounting.
Good luck.
Maps: Exploration, Resources, Reserves, and Production - Energy Information Administration
RIGZONE - New Albany Shale Could Create Jobs, Economic Growth in Illinois
In addition to what has already been said, first get an attorney to look at the lease when you get close.
Other things:
Make sure you are covered for surface damages. Repair of fences, roads, disruption of water wells, animal injuries, etc.
Is the option without any additional payments? Need some more money here.
Most of the shale leases are three years. You are probably over the New Albany which is not as prolific as some of the 'big' name plays but shallower than most. You might ask about the target zone and lease only from the surface to that zone and hold back deeper rights.
The percentage royalty payment is also low compared to what is going on in other major plays; more like 25%. But again the area is not known (yet) to be as prolific.
There are lots of websites out there on shale plays with a orientation towards royalty owners. Do a search on that.
Be careful of how the royalty payments are calculated. Some of the shadier operators have separate companies to gather and process their crude and natural gas (nothing wrong with that) but charge excessive fees (that is where the problem comes in). Make sure you have right to audit the accounting.
Good luck.
Maps: Exploration, Resources, Reserves, and Production - Energy Information Administration
RIGZONE - New Albany Shale Could Create Jobs, Economic Growth in Illinois
SPIKER
Elite Member
Look in your area for a co-op on the gas leasing, there are several in my area that are run by attorneys that know the gas leasing loop holes and how to fix them. In my area there are 2 that I know of both however are run by the same people. I'm on western side of the Utica Shale, MBLA (Mohican Basin Landowners Association) a 2nd one was COLA both by same people. I ended up joining MBLA, costs were up front to me but rather inexpensive I think it was 50.00 + 1 buck per acre. No luck selling rights on my plot yet because all of the companies have pretty much gotten too much land now & can't drill it fast enough to stop them from the 5 yr expire clause. In my area the last sales I was aware of were in the 2100/acre & 18~21% royalties.
Take a look at your state DNR and see if they have anything like Ohio does here is it's site http://oilandgas.ohiodnr.gov/citizens/leasing-information
It talks about standard leasing and clauses etc.
a 2nd lease issues highlighted by knowledgeable attorney
http://licking.osu.edu/topics/agric...nusual Ohio Oil and Gase Lease Provisions.pdf
Mark
Take a look at your state DNR and see if they have anything like Ohio does here is it's site http://oilandgas.ohiodnr.gov/citizens/leasing-information
It talks about standard leasing and clauses etc.
a 2nd lease issues highlighted by knowledgeable attorney
http://licking.osu.edu/topics/agric...nusual Ohio Oil and Gase Lease Provisions.pdf
Mark
forgeblast
Elite Member
Pennsylvania Gas Lease Attorney - Marcellus shale Landowner Lawyer Doug Clark This is attorney Doug Clarks website, he does a weekly radio show and has links to all the topics that he has covered.
Bocephous
Gold Member
That's who my father, sister, and I used as our attorney.
