What should I do if a company wants to lease my property to check for oil ?

Asked over 2 years ago - Austin, TX

When My father was a boy he saw oil in lake .We believe we have oil on our 50acr in East,Texas. We are sitting still until we make a good decision. We have had three companies send letters of intrest, . Can you help guid us.
Thanks

Attorney answers (1)

  1. Virginia Moore

    Contributor Level 7

    4

    Lawyers agree

    Answered . There are a number of significant oil and gas plays in the United States right now. East Texas is home to the Haynesville Shale Play which has been active for the last 4-5 years. Without knowing exactly where your property is, I can't offer you any information regarding its proximity to the "hot areas" but you should not ignore the landmen inquiries you are receiving. Bonus rates and royalty rates have increased significantly recently. Oil and gas leases used to offer a uniform 1/8 royalty - royalties now run between 1/5 and 1/4 (20-25%) and various other terms in the lease are negotiable to be the benefit of the lessor (mineral owner). I'd suggest you contact an oil & gas attorney to help you review your options and assist in negotiating the best terms (including restrictions on surface use if you reside on the property).

    Information provided is intended to be general in nature and does not constitute legal advice or establish an... more

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