Never sign a standard lease. Negotiate protections in the lease such as:
– Testing of water wells prior to beginning of drilling activity or stipulation that the quality and quantity of water is adequate.
– Payment for repair or replacement of water sources/wells if damaged
– Payment for surface damages (take “before” pictures of the land/homes)
Also, Negotiate protections in their lease such as:
– Re-contouring and re-seeding the land
– Minimum distance from inhabited dwellings for wells
– Noise abatement technology and low pollution equipment
– Off site disposal of waste products from drilling
You're not going to get everything, but you put everything on the table and you decide what your nonnegotiables are
How do I get what I need?
• Organize your section/neighborhood
• Collectively bargain
• Ensure person negotiating for the group has adequate knowledge, business sense and negotiating skills
• Do not sign anything without reading it and understanding it.
• Pay for representation if necessary
• Be patient, time is on your side
• Research and educate yourself
• Never allow yourself to be pressured into anything
Carolyn, Why would anyone take you seriously, just click on your topics and anyone can tell you are obviously quite biased.. I have been in the business for many years and have seen many great things happen due to the money generated by the industry,,,
Length of lease should be as short as you can get. Watch out for clauses that let them renew without you being able to stop them. Cash on the barrel head is best. Before the economy crashed 15 to 18 percent royalties at the well head were common in Wyoming on coal bed methane, not 12.5. Coal bed methane is a little different ballgame too. If peole start pounding stakes in the ground next door and claiming that a well is about to be drilled and you will have to accept the conditions of tha neighbor's lease whether you like it or not because your land will be part of the well unit, don't sign right away just because they say so. Check things out at your leisure.
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]