which way to go

I hold a small (around 50acres)  piece of land in northern PA and am coming off a 5 year lease.  The past lessee has offered 1500 a acre for three years (they have yet to drill in the area), a new company has offered 750 for 1-1/2 year and has multiple wells in the area with more then a couple permits on the books, with a "promise" to drill with in the lease time frame.  Should I take the money up front or go with the "potential"?and what are the chances of getting the "potential" to "guarantee" the drilling or to re-up the lease after a year at the 750 and or leave it up to our discretion to renew at 750+ so that were not loosing out on the upfront money the other company is offering?

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Permalink Reply by high on a mountaintop on April 16, 2013 at 5:22am

Lycoming outside Montoursville

Permalink Reply by Billy Park Whyde on April 8, 2013 at 3:41pm

Separate thew men from the boys ask for a performance bond just as in a construction contract  they drill within a certain time period fine if they don't you get the bond amount. Leases are not a promise nor do they hold promises unless they are worded very very carefully.  A performance bond would be a animal in its own standing. 

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