"Updating" existing lease?

Hello. I am from SW PA; received a call from company that our natural gas is leased to. They have had wells on our property for a good number of years. They want to “update” our original lease and have offered a mere $500.00 total signing bonus. Throughout we have received minimum payments … 12.5% royalty payments, of which they remove a considerable portion each month for expenses. Can anyone advise; do I need an attorney? Also, this lease makes us part of a 600 acre drilling. I am out of the country and do not have my original leases with me. My siblings have signed but I think they might have prematurely. The agent wanted to send my check immediately to me while I examined, signed and returned docs but I told him not to send it until I have signed. Not sure if this is the right place to seek initial counsel but I am confused. Can anyone get me headed in the right direction? I'd be grateful.

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Permalink Reply by jett on July 19, 2017 at 5:48am

And by the way 40 acres is not small - it's pretty darn good!

Permalink Reply by CR-FayetteCounty on July 19, 2017 at 6:08pm

TO EACH MEMBER THAT REPLIED TO MY QUESTION: I am overwhelmed by your input and want to thank you for it and the time you spent explaining and clarifying. Any additional input will be appreciated as we decide what is best for us.  I am not shrewd in deals, nor do I want to be, but I want integrity on both sides and a sense that both sides benefit. You have helped me to form my thoughts and again - thank you.

Permalink Reply by jett on July 20, 2017 at 1:45pm

There's no worry that the oil/gas company will benefit - they wouldn't bother if it wasn't going to net profit them very, very, very well.

Practicing integrity on your side is very good but there are no guarantees that your integrity will influence the other side. You have to work with whoever is doing the deal for them. That's why you're getting advice to be civil but firm.

Don't cheat yourself.  It's your surface property, your oil and gas, and the future of you and yours. This could be a one time opportunity so it's best to use it wisely. We were surprised at the value of what what we had. It's just not about money though because there are also protective measures the landowner can get in their lease. Wishing you the very best!

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