Gas Leases

From the Charleson Gazette comes a lesson: Don’t let gas men pressure you into signing gas lease contracts:

Castle and his father thought they were getting a windfall when they signed a $5-an-acre lease and promise of 12.5 percent royalties for the gas rights to 800 acres they own near Rowlesburg in northern West Virginia. The process started when a landman - an industry term for a person who secures mineral rights - knocked on their door.

Sadly we all know what comes next in this story

His feelings of trust evaporated when rival companies started offering $350 an acre and royalties as high as 15 percent.

Castle goes on to describe the common tactic among landmen: If you don’t sign now we might just suck the gas from under your property anyway. Unfortunately many landowners fall for this tactic and end up selling themselves short.

You can read the rest at the Charleston Gazette.