If you do lease, do not give them the automatic renewal at their option. If you do and there is any production close to you within the first 5 years, they will renew you without blinking, and if there is not, they will not renew. However, if there is production near you and they do not have the automatic renewal, your next lease, which I would recommend negotiating with them at that time for a 3 year lease, with a much better rate. Your goal should be production and royalties if at all possible, limit the time they can lock up your property, it will increase the odds of your property being produced if there is oil and gas there.
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Today's Featured Article - A Lifetime of Farm Machinery - by Joe Michaels. I am a mechanical engineer by profession, specializing in powerplant work. I worked as a machinist and engine erector, with time spent overseas. I have always had a love for machinery, and an appreciation for farming and farm machinery. I was born and raised in Brooklyn, New York. Not a place one would associate with farms or farm machinery. I credit my parents for instilling a lot of good values, a respect for learning, a knowledge of various skills and a little knowledge of farming in me, amo
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