Buy or lease?

Would there be any reason why a gas company would BUY land instead of leasing it? I noticed somebody sold land to Chesapeake for $2,000,000 in Towanda township recently.
I'd sell my property in a heartbeat for a decent offer.

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Permalink Reply by Christopher S Gilbert - Realtor on August 9, 2010 at 5:03pm
I am a realtor and I can help. You can get good money for the property with the oil and gas rights intact. Let me know if you would like to discuss this further.
Permalink Reply by carey warren on August 9, 2010 at 8:48pm
We really aren't in the market to sell the property. My husband thinks the oil and gas rights
far outweigh what we could get for our measily 10+ acres that sits on the Marcellus Shale.
From my understanding, a well is going in right down the road from our property. I was just
curious as to why Chesapeake bought someone's property for $2,000,000. I think if I was
offered that much money I'd sell too. We have a lease for 5 yrs. with 20% royalties.
Permalink Reply by brinlady on August 11, 2010 at 9:11am
On the flip side, a well negtiated lease will require the gas company to pay any increase in property taxes over the taxes assessed before the lease was signed.

When selling mineral property, most folks sell only their mineral rights, which means less liability for the gas company that purchases them.

brinlady

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