Leasing your land

[Gilby959798]

I was recently approached about signing a lease with a well know gas/oil company and was wondering if any lvcers had any experience with this. I haven't got all the details yet but I know what some people close by with the same ammount of land have gotten, he showed me his contract.

Anyone else lease their land?

 

[n8bachelor]

I have not personally. But I know what the typically want to do with it... drill. It would net you some extra cash but may not be worth it depending on your situation. How much land do you have? How much would you lease? Do you live on the land or is it elsewhere? What does the lease say about cleanup of the land when they are done or if there's a problem? These are some things you want to consider.

 

[Mark8Murder]

Yes sir, I purchase property to lease.

-Are they wanting to just lease the property or do you have mineral rights as well?
-Either way, make sure they are liable for any damages and any environmental hazards or "accidents"
-Make sure they are fully responsible for all equipment and access to thier equipment.
-They must be responsible for set up and take down/clean up.
-Have your lawyer look it over with a fine tooth comb.

-As far as cash, if you have mineral rights.... Negotiate hard.
-If your just the land owner, try to find out how much they're looking to pull off your property, negotiate from there.

 

[Gilby959798]

I own 5 acres and they want to lease the mineral rights. There is a slim to none chance that they would drill on my land. The contract I have includes cleanup and most of the things mentioned. The going rate around here is about 2k per acre. With 12.5% royalty. The land is my primary residence.

 

[LSC HUNTER]

Did you get your door fixed? If so did you get a new one or wreckers. How did it all work out?

 

[Mark8Murder]

I own 5 acres and they want to lease the mineral rights. There is a slim to none chance that they would drill on my land. The contract I have includes cleanup and most of the things mentioned. The going rate around here is about 2k per acre. With 12.5% royalty. The land is my primary residence.

If they're not drilling on it, what are they wanting to lease it for?

$2K per acre monthly or annually?

Does the reserve thier pumping from come onto your property?

 

[Gilby959798]

They need 800+ acres for a new well site. I'm just a small part of the pie. The lease is for the rights and the term is 10 years. That's typical around here. These are deep wels (a mile plus).

 

[Mark8Murder]

Seems like a good deal, I'd just go through the contract with an attorney that knows the industry.