surface rights
We have been offered a lease for our property but it doesn't mention any payment to have a well drilled on the property. It mentions royalty payments of 20% but if they are to erect one of those big wells, would I be entitled to monthly payments for that as well. If I am, would that be mentioned in the original lease? Also, should they drill a well on our property, what is the going rate for that? I am new to this. I have an attorney but I really want to hear from people that have been through this process as well. Thanks
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Permalink Reply by Erin Carpenter on
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I think that our contract say that we get 25K for a well on our property with 16% royalties. My lawyer said that royalties are where there real money is and 20% is very good. The state minimum is 12.5% so companies have to give at least that amount.
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Permalink Reply by Melissa on -
You are well within your rights to consult with your attorney but please be aware they can delay the signing which could potentially cost you signing bonus money because the attorneys will be working in their own best interest. As far as payment for having a well on your property, companies do not offer payment for that in their leases, some companies have addendums that may pay you for every well drilled on your property but that will most likely insure that they drill on someone elses. 20% royalty is outstanding and long term royalty is where you make your money on an oil/gas well.
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