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

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.

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Attorney answers 1


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 attorney-client relationship.

George Frank Carder III

George Frank Carder III


If your state statutes and regulations allow integration, which I think they do, then it is imperative that you act in a timely manner. Theoretically, the state views its responsibility as to promote the development of the state's assets while recognizing the correlative rights of all parties effected. Timely, informed negotiation is to your advantage. Even if there is no current leasing activity on your area, you would be well served to seek out your representation ahead of time in order to be prepared for what will come.

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