Anyone know anything about oil and gas leasing? there are companies trying to lease my land for natural gas drilling and poss. oil. Im real sceptacle, but all my neighbors signed up. I just dont know much about it, other than its a 5yr lease and pays anywhere from $500/ac to $1000/ac.
Anyone know anything about oil and gas leasing? there are people trying to lease my..
- Thread starter GODEEP
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N
NDflatlander
Active member
Consult and attorney that specializes in oil and gas law. Find a reputable one that works for the land owner. If you have a particular attorney that you already have worked with talk with that attorney to find an oil and gas attorney that they would recommend.
The mineral right lease area is really big right now. There are owners that are making big money, $4K-$100K a month in royalties once a producing well is established. I have heard of several cases that the first check the mineral right owner have gotten oil wells in ND have been producing $500K-$1M making them millionaires in a hurry.
you prolly only have surface rights, if you have mineral rights and they hit oil/gas, order up that dream sled......
I have 2 gas wells and 4 pipelines running thru my half section of land, the pipelines were a one time payment for surface disturbance, the gas wells pay $3500/yr land lease. the first gas well has been here since 1974, never been any sort of problems with it. they are required to re-negotiate lease fees every 5 years up here in Alberta.
tell them you want any access roads into your land for their facility gated or fenced, to keep out hunters or hoodlums.
I have 2 gas wells and 4 pipelines running thru my half section of land, the pipelines were a one time payment for surface disturbance, the gas wells pay $3500/yr land lease. the first gas well has been here since 1974, never been any sort of problems with it. they are required to re-negotiate lease fees every 5 years up here in Alberta.
tell them you want any access roads into your land for their facility gated or fenced, to keep out hunters or hoodlums.
talk to a mineral rights lawyer. This stuff is complicated from what I know.
Then think and talk it over...just what are they asking for and getting if they pay you? Do they get free run of the land, do you have some say? How much land? What kind of affect will it have on your land, and are you ok witht he price they put on it? Do they pay you more if they strike big or can you broker for that?
I definitly wouldn't rush into it.
Let us know how it goes.
Then think and talk it over...just what are they asking for and getting if they pay you? Do they get free run of the land, do you have some say? How much land? What kind of affect will it have on your land, and are you ok witht he price they put on it? Do they pay you more if they strike big or can you broker for that?
I definitly wouldn't rush into it.
Let us know how it goes.
N
NDflatlander
Active member
I'm assuming you have the mineral rights to the property if the companies are contacting you. They have people that are called landmen/women that spend a lot of time researching the title to the property and the mineral right in the county courthouses. Those individuals are making big bank right now and the expedition companies are looking for more all the time.
so you're saying if he doesn't have mineral rights they wouldn't contact him? the companies send a land broker to smooth talk the landowner, usually a well dressed and versed guy/gal that has a gift of gab and a shiny watch. mineral rights or not, they MUST contact you before setting foot on your property. they are basing their exploration on previous geological surveys, or will first have to perform geo testing to determine feasability of exploration. they will present a proposal/statement several pages long, READ IT. they have come to my place, plopped down this 50 page document and say "it's just standard stuff, sign here..." ya, right.
if you do have mineral rights, you have the upper hand and they will bend over backwards to please you. get a good lawyer, they too will scramble to kiss your ***.
I do have all my mineral rights. They are very well educated good talking people. I know they are trying to work me, but just when I try to get somthing, they are like "well, have a god day. our offer is the best you will find. go ahead and sign with someone else. etc.."so im just not sure what to do.
I have to pool with anyone within 640 acres. some guys offer 15% of net. some 12.5 of gross. Then i am afraid if I dont sign soon, all the hype will go away and i wont get anything, or maybe if I wait I can get more. AHHHHHHHHHHHHHHHHH..
I have to pool with anyone within 640 acres. some guys offer 15% of net. some 12.5 of gross. Then i am afraid if I dont sign soon, all the hype will go away and i wont get anything, or maybe if I wait I can get more. AHHHHHHHHHHHHHHHHH..
has any company approached you before to drill, and has there been previous seismic exploration on your land? are there current producing wells close to you? if not, they would have to do the exploration from scratch, but you would think they have to believe that something is there to be initiating the process with you.
up here they deal with crusty landowners without mineral rights by simply setting up next to their property and whipstocking (guiding the drill bit) underground to the area they want anyways. I would suggest getting a lawyer, there has to be someone with some oil and gas experience you can contact. I wouldn't mess around since you have the min rights, could be big dollars here for you.
up here they deal with crusty landowners without mineral rights by simply setting up next to their property and whipstocking (guiding the drill bit) underground to the area they want anyways. I would suggest getting a lawyer, there has to be someone with some oil and gas experience you can contact. I wouldn't mess around since you have the min rights, could be big dollars here for you.
Relax, call up your lawyer and get the process going, you need to know exactly what you have before you start signing.
They all are telling me that If I dont sign up, they are going to just drill horz. and take whats under me anyways. WTF?? how deep do my rights go? They say they drill 7K ft. and if the well is on my prob. I have to share the 15% with all the neighbors who sign the leases. something just doesnt sound right to me.
I think you need to spend the money and get a lawyer or some other professional to help you out with this. I agree with you though, warning bells are going off. Good luck.
If they are that determined...Just think what you could be sitting on...Play it slow, put the chips in your favour...you ready to retire?.
They are not going to go horizontal just to get under your land and screw you. They are going to do it because they can cover much more land with only one well. Horizontal wells are surveyed, and the oil companies know exactly where the wellbore goes. These surveys are also turned into your state's department of natural resources. From what I have read, it looks like the company wanting to drill on your land is planning on drilling one lateral wellbore per section of land. Therefore, if you do not own that entire section, the well will be drilled on more then one landowners land. Once this happens, you don't get to call the shots. It is between everyone who owns that section of land. Say you own one quarter of the section and the section gets leased out at 17% (1/6). You would get 4.1% of what that well produces.
I am no lawyer so I can't guarentee everything I just said, but I have a fairly good grasp on how this works.
I am no lawyer so I can't guarentee everything I just said, but I have a fairly good grasp on how this works.
It sounds like you are getting a really big headache, that can be hard on people and then their lifestyle will be affected and eventual death is the result. In order to avoid all the pain and suffering, go ahead and turn over the deed to me and I'll come up and take care of it for you, you can go buy that lodge up in Canada and we'll all be happy. Right???
Now, tomorrow morning, pick up the phone and call a lawyer you know and trust!! Don't do spin the bottle in the yellow pages, I'm sure you know one who can refer you to a good one. Even if there is nothing in your dirt, you still want to be as prepared as you can to get as much as you can in case there is.
You got a dog? Put a sign on his neck that says "want somethign?? call my lawyer, after you throw me some kibble" and park him by the driveway.
Good luck and may you prosper!!!!
Now, tomorrow morning, pick up the phone and call a lawyer you know and trust!! Don't do spin the bottle in the yellow pages, I'm sure you know one who can refer you to a good one. Even if there is nothing in your dirt, you still want to be as prepared as you can to get as much as you can in case there is.
You got a dog? Put a sign on his neck that says "want somethign?? call my lawyer, after you throw me some kibble" and park him by the driveway.
Good luck and may you prosper!!!!
Yeah, you are on to it. I just met with a guy tonight and there offer is 15% on net (1/8) + 800/ac for natural gas and oil in the shale at 7000ft.
Im pissed casue I want a deal on Gross no net. but company A offers 12.5% on gross and $500/ac then company B offers 800/ac and 15% on net. now company C says they dont want to sign me a deal. company D says get me all your neighbors and I will sign a better deal. my neigbors want to sign by monday.
I got 150 acres. so its not gonna be a killing, but I dont want to screw myself in the end either. the local lawyers dont crap about this stuff.
I just dont know if now is a good time to sign with my neighbors since gas prices are high on the market or if I should wait it out and hope for a better deal. what if they dont hit gas near me? what if they do? fk!
How about having a meeting with your neighbors to see what there thoughts are? Maybe they know more about some it than you do? Couldn't hurt, and as a group you might have more leverage. Just some thoughts, but doing it rash is a crap shoot.
oil
Why not just sign and let them drill anything that you get paid per acre and anything that is found underneath is just gravy on top of owning the land. I have seen many many guys try and get every last penny that they can and eventually the oil companies just go somewhere else and drills in a diff section and those neighbors get the money. 500 an acre at 150acres is an extra 75k for doing nothing more than owning the land and minerals. Just consider this all a blessing as it can go away in a hurry. Dont bite the hand that feeds you.
Why not just sign and let them drill anything that you get paid per acre and anything that is found underneath is just gravy on top of owning the land. I have seen many many guys try and get every last penny that they can and eventually the oil companies just go somewhere else and drills in a diff section and those neighbors get the money. 500 an acre at 150acres is an extra 75k for doing nothing more than owning the land and minerals. Just consider this all a blessing as it can go away in a hurry. Dont bite the hand that feeds you.
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