Hello - My siblings and I just got in the mail a request to sign off on a Paid Up Oil and Gas Lease which I know very little to nothing about.  We don't live in West VIrginia; this came thru our (deceased) grandmother's sisters, and I just want to know if it's a good thing to do to sign it, or not.  Was hoping to get someone with some familiarity as to what the going offers are.  Any information from this area would be helpful.  Thank you in advance! 

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Julie, the lease you recieved in the mail is most likely a "boilerplate" lease, which heavily favors the company. It would be in your best interest to speak with a good Oil & Gas Lawyer before signing anything. Hopefully, someone will chime in with some good lawyers.

One offer I know of in Tyler is $1,500 per acre  16% royalty 5 year lease with no extension. This offer is recent and was $300 back in March. Leases have been signed for as much as $5,000 per acre in northern WV.



I too recently acquired a small portion of mineral rights on two tracts in Tyler county. I have been offered $1276 an acre and 14% royalties with a five year lease. I am uncertain about the chance of bartering the percentage. The only person I have spoken with said this is the best they will do (period). I hate to waste money on an attorney and I also reside in Michigan that according to the Internet has NO mineral right attorneys. The contact person of course assures me that the leases are "standard" and right from the State. Do I dare do this without an attorney? Any suggestions appreciated.

Luann, I take it that you own a percentage (undivided interest) of these two tracts.

If this company is looking to drill horizontal wells on these tracts or include them in a unit, they "cannot" do so untill you "sign" a lease. Do not let them pressure you. Time is on your side. Your biggest worry is if forced pooling were to be enacted by the legislature, taking away your right to do business with these companies and get the best lease possible. Also, be careful that the company that is trying to get you to sign is an actual drilling company. Not a land grabbing company looking to make $$$ off your minerals by selling it to the actual drilling company and keeping bonus money and royalties that should be yours. Barter, Barter, Barter !!! Both Bonus and Royalty !!! If this is a land grabbing company, hang in there, the real McCoy will show up eventually.

Hi Gasoholic, Thanks much for replying. Yes, I own Mineral Rights to a certain percentage. If legislation does pass this forced pooling, do persons who hold prior contracts get a grandfather clause? Just curious. They will be fracturing on this tract which is 167 acres. They say they are already working on the acquiring a 660 acre tract that butts around this property, and say there will be additional leases. I did contact a lawyer and he just happened to reside in Tyler county. He told me this was a good deal and that I should definitely have him look over the additional leases? I am not really sure why he seemed more concerned with these additional leases than my original leases.

You can address any concerns by adding addendums into your lease.

As far as I know, if forced pooling is enacted, everyone will be affected unless there are specific terms agreed to in the lease. 

Of course you'll need to agree to pooling so as to be part of a unit involving 640 + acres for horizontal drilling to take place but you do not want to be force pooled.

Just keep in mind, although you only own a percentage of the 167 acres, you treat it as if you own all 167. They cannot touch any of it without you signing. This is your chance to barter !

Be careful as to how the lease reads as they could take an acre or even less of the 167 and add it into a unit and hold the rest by production.

Luann, also keep in mind that if this is coowned minerals and the others have already signed, lets say a 5 or ten year lease, it's possible that it could be years till the real company really needs your acreage.

Greetings Gasoholic,

I am uncertain as to what you mean by holding the rest by production? Could you clarify?

Even though you sign a lease which includes all your acreage, they can take only one acre and include it into a unit. You will be paid a signing bonus for all the acres but you will only be paid royalties on that one acre. The rest could be HBP and developed at a later date. This is something you can address in your addendums.

 Even if you sign both parcels on one lease agreement and they are located 5, 10, 50 miles apart in the same county, they can drill on one and hold the other by production. One way to avoid this is seperate leases for each tract.

Hey gasoholic,

One more question. Is the company suppose to then pay us the offered amount "per acre" on all acres concerned with this unit or just the acreage owned by me?


 Your signing bonus will be for your acreage owned.

Hi Julie - I was just wondering if you and your siblings were aware that you owned mineral rights in Tyler Co. prior to receiving an Oil & Gas lease offer?  Have you been paying taxes on these rights? If so, we have no doubt overpaid the taxes as my brother and I have paid the taxes on these mineral rights for many years. Does the name Jemison mean anything to you? The offer you and your siblings have is no doubt from Petroedge Energy, LLC. If you're interested in more details, let me know. - Bob Mehl


Why would people who own mineral rights be responsible for property taxes? They are two separate entities. Is Petroedge Energy LLC a scam?


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