Should You Sign A Gas Lease? Part 1

[arscill1]

It can completely ruin the value of your land. If it's fracking it's about, there's ample international evidence now that it ruins the water table. By the sounds of things, signing gas leases means you grant these companies permission to ruin you land.

[waitew]

I inherited the mineral rights on 20 acres in the Permian Basin W Texas.I have been contacted by an oil company who wants to lease them for 2 years giving a 700 dollars per acre signing 'bonus' plus 20% of what is produced. Is this usual & customary? They seem in a big hurry. I don't own the surface rights. Any help.

[PSUWayneCounty]

@waitew It's a decision you need to weigh carefully. I would encourage you to talk to other landowners / mineral rights owners there and find out what they are being offered. In many cases offers will be different. We've seen success in the Marcellus with landonwers banding together in groups to negotiate better terms and compensation for their leases. Always seek legal council before signing a lease.

[hjr927]

Hello,

I have a question if anyone can possibly advise. I am looking at a property that has 50 acres and currenly has a gas lease, if i purchased it would i be entitled to any of the money the previous owner rec'd for signing lease and would only " I " be entitled to the royalalties if I purchase it and they drill and find oil? Would the previous owner be entitled to any royalalties once they no longer own the property??

Thanks

H

[PSUWayneCounty]

@hjr927 It really depends on what you are buying along with the 50 acres (i.e. how the sales agreement is worded). Are you purchasing only the surface rights to the property? Or are you buying all or a portion of the mineral/gas rights along with the surface? In either arrangement, you would generally not be entitled to any of the original lease bonus payment received by the previous owner, but you may (depending on your sales arrangement) be entitled to future royalties.

[IStealPursesXD]

Yep. You'll be rich

[rnstuffy]

omg get to the point

[RegularFool]

sign the paper