Gas Leases

Jack and Mary own 40 acres of land in south Bossier Parish.

They received an offer to lease their land to an oil and gas company. They signed the lease, thankful for the $2,000 an acre they received for their lease.

A few months later, they discovered other land owners getting substantially more money for land very close to their property.

Nick and Nancy leased their land to an oil and gas company. The oil company drilled a producing well and now roads and pipelines crisscross their property.

The sound of heavy trucks disturbs their sleep at night. They didn’t realize they could have specified where the pipe lines and roads would have been located when they leased their property.

Tom and Elizabeth leased their land.

A well was drilled and produced for a number of years. Recently, the oil company came back to the same spot to drill a new well at a deeper depth.

Tom and Elizabeth did not receive an additional lease payment for the ability for the gas company to drill at a deeper depth.

They didn’t realize they could have had a lease with language in it that would restrict the ability for the gas company to drill at deeper depth at a later date without signing a new lease with new bonus payments.

Bob and Linda live on 40 acres. The land is actually owned by 12 different family members.

A gas company wants to lease the minerals on the property, but Bob and Linda are having difficulty getting the 12 family members to communicate with the gas company. The gas company has given up on leasing the land and moved on to property with organized family members.

Bob and Linda didn’t realize they could have hired an agent to work for all the family members to negotiate the lease for them.

Ted and Jennifer leased their land for what they thought was a fair bonus and royalty interest.

Later they found out that their neighbors had leased their land with a much more attractive royalty interest.

Ted and Jennifer had no idea they could have gotten such a high royalty.

The above oil and gas examples reflect just a few of the many issues that are involved in mineral property leasing.

Royalty percentages, accounting issues, no drill clauses.

The list of issues goes on and on. For a very small fee, usually tax deductible, a property owner can get professional help to guide them through the mineral lease process.

Many land owners are “flying blind” not knowing if a lease that is presented to them is as good as it can possibly be.

After the lease is signed, they find out other people signed leases with clauses and amendments they wish they had incorporated in their lease.

The bottom line is that getting professional help with an oil and gas lease will more than pay for itself.

You may get a larger bonus check, a larger royalty percentage and the details of the lease could be more favorable to the land owner. If you have minerals to lease, seek professional help.

You many get a better lease, and much more importantly, peace of mind regarding a very technical and important issue.

[Via The Shreveport Times]