Posted by Dan in Houston on February 08, 2008 at 11:01:35 from (38.100.70.66):
In Reply to: O.T. - Drilling for gas posted by CB in central NY on February 08, 2008 at 07:28:37:
That's the way the oil and gas business normally operates. Landman negotiates the leasing, then the company comes in and drills. The amount of royalty you can retain and the lease bonus depends on your negotiating skills and what the going rates are in your area. The company has an idea of how much gas they might find, and that determines how much they are willing (how much they can afford) to negotiate. Hiring a lawyer is always good advice but how much land do you have? If less than 5 or 10 acres, then it might not pay to involve a lawyer. If more, then a lawyer would probably be a wise investment, but make sure you find a lawyer that knows oil and gas, otherwise you will be paying for him to get an education.
If you only own a small amount of acreage, then your acrege would be "pooled" with your neighbors to create enough acreage to justify drilling. So your interest would be proportionately reduced, and your neighbors may not necessarily have the same lease terms - they may get more or less.
And of course there may not be any gas down there, so they will just plug the well and that's the end of it.
It would take several books to discuss this topic, but chances are this could be a good deal.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
... [Read Article]
Latest Ad:
1964 I-H 140 tractor with cultivators and sidedresser. Starts and runs good. Asking 2650. CALL RON AT 502-319-1952
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
