Posted by philcaseinWPA on February 08, 2008 at 08:13:21 from (146.186.54.125):
In Reply to: O.T. - Drilling for gas posted by CB in central NY on February 08, 2008 at 07:28:37:
I just recently signed a lease with a gas drilling company. There are a lot of things to consider. A typical lease will run 5 years and pay so much per acre per year + some sort of bonus per acre for the first year. How much they are willing to pay depends on how interested they really are. They then have 5 years to drill and find gas. If they don't do anything in the 5 years then you can have the lease written to expire and they have no claim to your gas. If they drill and find gas then you are entitled to a certain amount of the money the gas is worth. How this is figured and what costs can be deducted can vary and should be specified in the lease. A typical payment would be 1/8 th (12.5%). State laws vary but in PA that is the min but usually all you get. Get a lawyer who is familiar with gas leases. Search the internet, talk to neighbors who are also being approached probably. Don't be pressured to sign up today or miss out. A 'landman'came around to me 3 or so years ago and then never returned my calls. I figured it was a dead issue then last year another one showed up from the same company and made a lot better offer. He made several trips back then I did not hear from him for a while but finally we got together and signed in Jan. They may offer to pay the entire 5 year lease up front. They will also probably offer either free gas if they find any or payment for the equivalent. Figure 2-3,000,000 cu ft / year. Check out these web sites: http://naturalgaslease.freeforums.org/ http://naturalgaslease.pbwiki.com/ http://www.glossary.oilfield.slb.com/search.cfm Do a google search. I had a lot more info than these sites but do not have them book marked. Proceed with caution and good luck. Phil
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