Injection well lease question

My family was approached by a company that wants to put an injection well on our property. Were concerned That it might cause problems if we go to lease our remaining acreage w an o/g company.  Do injection wells have a negative effect when it comes to o/g leases and drilling?

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Permalink Reply by Michael A. on March 7, 2012 at 9:44am
The injection well lease was drafted by buckeye, tried contacting them several times but havent got to speak w anyone that can give me answers
Permalink Reply by Toronto Ohio on March 8, 2012 at 11:53am
You should hold off leasing.
Permalink Reply by Howard Markert on March 9, 2012 at 2:20am

If you have a mortgage on your property you run the risk of having your bank call in your loan for violation of contract, any type of resource extraction requires that you get advance written permission from your lien holder before you sign any outside contracts for mineral rights.   In addition if you ever want to sell your property a large number of lenders including FHA/VHA will not write loans on properties with a well on or too close to them.

If you own your property outright, or are in a position where you could self finance the sale of your property then do whatever you want, there is no law preventing you from destroying the value of your fully owned property.

Permalink Reply by Billy Park Whyde on March 12, 2012 at 2:34pm

If the value is high enough and you desire the possibility of the income , be careful and  do what you need to do and good luck. 

Permalink Reply by Philip Brutz on March 9, 2012 at 2:46am

 I would have a good oil and gas attorney read the lease before you sign it.  Depending on how the lease is worded you may be signing away part of your property and the rights to the minerals under it.  If you live on your land you may want to consider how much truck traffic there is going to be.  There also could be loud compressor noise to deal with.

Permalink Reply by Philip Brutz on March 9, 2012 at 11:59am

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