BlackGMC

iTrader: (31)

Well I got an interesting letter in the mail today. Where my house is located, Barnett Shale, apparently the there is a rather large deposit of natural gas. They are asking to lease my mineral rights from me at a rate of 20%, plus I get a signing bonus for allowing them to do this. Anyways since I own my mineral rights, I will get paid for basically sitting on my butt!!!!

BTW they drilling rig is roughly a mile away from my house, so NO they are not putting a drilling rig in my front yard... So I am meeting with the broker tomorrow to discuss my options and payment!!!

My parents did a similar thing roughly a year ago with the same company, they got a decent signing bonus, plus they will be getting monthly checks for several years...

Just another bonus of owning your own house..... I think I might buy a verter with my signing bonus and take my GF out for dinner...

viciousknid

iTrader: (8)

my grandpa did this in the field behind his house. They did put in a pumping unit tho. But a long with the signing bonus he got extra for "Property Damage" from how i understood it. I say do it, it's money in the pocket and it's good for the state.

dirt track racer 81

iTrader: (45)

do it..i know of some of the wells ive been on the farmers are sittin pretty good..one well ive worked on made $330,000 a day on just gas alone plus the 200 barrels of oil day at $100 an barrel..but not every well comes in this good..this well is rare in these parts..

BlackGMC

iTrader: (31)

I am going to do it, but the pay out wont be that much, I think roughly $150-250 a month something like that, more if I had more land....., but hey that is free money and the lease is only for 3 years, supposedly they are going to be pumping for alot longer than that... Gotta love free money...

RoosterMcCandles

iTrader: (4)

ViciousKnid and I have the same grandpa. I believe he ended up getting 3/8. Honestly, 20% is terrible and I wouldn't do it for that. If it's really that good then they will want it badly and will pay you nicely. I would negotiate with them. DO NOT settle for 1/5.

BlackGMC

iTrader: (31)

How much land did he have?


I have done a little research and the only way I see to get a higher rate is if my entire community stood together, got a lawyer and took them to court... I doubt many of my neighbors would do that...

RoosterMcCandles

iTrader: (4)

I'm not real sure how many acres that unit was on. It wasn't too much. Your entire community is getting screwed then. The numbers they shoot you ARE negotiable and most people don't realize that. It's like a car dealership, of course the first offer they shoot at you certainly isn't their best. I like reading our local paper and looking at who gets screwed and who knows what is going on under the Mineral Rights section. Counter them a 1/4 offer if you don't feel comfortable playing hardball with them. The worst they will say is '1/5 is the best we can do' which would still be a lie but you'd still get your 1/5.

BlownChevy

iTrader: (20)

I am suprised the jack booted thugs have not attempted to use Imminent Domain. They could ask the government to use this and run you all out of town. I have seen it more than once around here with public utilities.
http://legal-dictionary.thefreedicti...mminent+Domain

RoosterMcCandles

iTrader: (4)

I would LOVE to see an oil and gas company try that around here. It might pass the courts but it would not be worthwhile to them in the long run.

dewmanshu

iTrader: (4)

The county/state here has been slowly buying rights to put this "inter county connector" highway in here (tolled) it goes right thru every neighborhood in Montgomery County. Anyway, my point, they started out with 15K as an offer to get JUST right of way of a 15' strip of one of our owner's land. Maybe 500' long. Right away only, nothing being built on it....he just deposited his check for 68K. They are low balling you. Just tell them you have spoke to alot of "legal" people and prior contracted people and you think their offer is a little low. It's not like they will say screw it nevermind. They'll talk.