Re: get an attorney to review

Posted by kyle in NY on June 11, 2007 at 21:23:05 from (69.117.212.254):

In Reply to: Re: get an attorney to review posted by Stan(PA) on June 11, 2007 at 19:35:32:

Stan, without the lease they cant drill on your property but they can still extract gas from your land if the well is on a nearby property. That entitles you to royalty if the vein runs under your property. The reason that they like to get signed leases from all who reside above the pocket is because they can also store gas in pockets under your land. They not only want the lease so they can possibly put a well up but also so they can store it. Once they store it there is no telling when they will actually sell it, and you only get paid on the sale of the gas. Since the gas is a commodity, who is to say that they wont pump and store it and who knows when you will see the money. In my case if they did this they would have been able to hold my lease untill the well dried up or they sold the gas(which ever came last). All of this for a one time lease fee. They made it seem that I would get the fee every year for the five years of the lease, but after reading the fine print it turned out to be a one shot deal. If they did not tap in the 5 years then I could get out or renew, but if they did, I would have been stuck. My place is on the southern tier, a town called Newark Valley one half hr west of binghamton and half hr south of Ithica. Lots of gas around the area. P.S. since I blew off the first company, another has been calling because they want to do testing on my land being that I am the only one in the area who has not signed. My neighbors are all kicking themselves for signing with the first company and locking themselves in for pennies. The crazy thing is that the attorney only charged me 75.00 to review the docs and to make up a laundry list of things that were not kosher. Even if it costed me a ton more it still would have been worth it. I'm not in the business of giving my land away for free. Also if they are to put a well on your property you should also get at least $10-15,000 for a "disturbance fee". They will want to fence off about an acre, and they have access to it whenever they want. You can also specify if you want a "Non disturbance clause" in which they only lease the mineral rights (under your land) and can not come on without permission. But either way your land is tied up. The only way I would have signed is subdividing my property and only signing the lease for the vacant land, but I just said screw it, not worth it. Kyle

Replies:

Add a Reply Name: E-Mail: Subject: Comments: Optional Link URL: Link Title: Optional Image URL: Email Notification: If you check this box, email will be sent to you whenever someone replies to this message. Your email address must be entered above to receive notification. This notification will be cancelled automatically after 2 weeks.

TRACTOR PARTS	TRACTOR MANUALS

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 ]