I need general oil & gas questions answered about oil comapany wanting to lease my residentual mineral rights.
How would I know, as a novis, if I am getting a good deal or scamed by by drilling companies. Some want to lease my mineral rights but don’t explain how or who pays me my due royalty potentials or how its paid, or when? What are the advantages of one offer over another? I have rejected the first offers only to notice that future offers are getting higher over time, interesting! Where do I look to find what township, section and range my lot is located on in my town? How can I find out about what other residents around me are doing one way or another? I’m not in a hurry to do anything without making an informed decision(s). I certainly trust the drilling companies to do their job and they can trust me to varify their activities in dealing with me.
February 21st, 2010 at 5:43 pm
take the lease that they are wanting you to sign to a local mineral lawyer to find out what going on there are some companies that don’t do title work and get someone that doesn’t own the minerals to sign.
go to the county court house and look up current new oil & gas leases that are around your tract to see the going rate.
the county property map should help you locate what you are paying taxes on.
the state should have gas maps for your area on internet
February 21st, 2010 at 5:43 pm
Know nothing of this subject either, my advice would be to go to a laywer or some sort of legal consultant.
February 21st, 2010 at 5:43 pm
see an attorney at law, it’s a big mistake to try to do it your self
February 21st, 2010 at 5:43 pm
Sounds like you need a lawyer on this one.
You’re asking a bunch of good questions, plus what are they going to do to your land? Who cleans up after they’re done?
I wouldn’t trust the drilling company… They’re out there to make money and obtain raw material at the best rate.
June 5th, 2010 at 11:23 am
Veritas, verify.
Even though the landmen work for the energy company and have their best interest in mind, they also operate by a code of ethics as do other professionals.
Usually you will be offered the going rate for your area.
Legal advice is OK, but to verify ask the landman for a copy of the unsigned lease agreement so you can verify the legal discription of your property and your mineral interest.
Do some of your own footwork, get out your deed or, go to the court house and get it and compare document notes.
If you were contacted then you own some of the minerals.
Leases are paid 2 ways, paid per leased acre and paid by agreed royalty percentage.
Which is usually 18 – 25% of the total production of any well within your drilling acreage block. A drilling block may include many land owners or, mineral owners and usually a well cannot be drilled without all or a large part of all the owners participating.
Hope this helps ??
From Texas.