Question is too vague to answer. What state, what county and what lease terms?
State of wv. Gilmer co. And no lease terms just heard that president trump was going to pass something to help out the people of mineral rights
I would certainly not sign any oil and gas lease until you completely understand what your signing. It doesn't matter what Trump will do after February. Here are certain things you need to modify in a lease.
Terms- A lot of times companies will bring you a 5yr + 5yr or 3yr lease. Make sure you get a 3yr lease only or the most of 5yrs only.
Royalties - A lot of leases will give you a standard of 12.5 % or 1/8, but the problem is the "Post Production Cost" The time you sign at 12.5% with these fees, you will only see 6 to 7% total. Same if you sign a lease at 15%, with cost, you will end up with 8 to 9%. Depending on the company, negotiate a 15 to 16% royalty "COST FREE" or "GROSS AT WELL HEAD". Some will also us "NON POST PRODUCTION COST"
General Warranty Clause- This clause needs to completely come out or have a special warranty clause added. You never want to sign a lease with the General warranty.
Shut in- Make sure you get a higher per acre amount for shut in. Most leases read "$1.00". Try to get $100 or the least $25.00.
Pugh Clause- Make sure you get a Pugh Clause put in.
Depth Clause- Sign only a "Marcellus Shale lease" This will allow you to negotiate a new lease for the deeper rights. (Utica)
Bonus- Where you're located, it will be hard to get more bonus money, but start out at $2500 an acre.
Get a Compliance clause
Get a Hold harmless clause
Get a "No gas storage clause"
Get a "Non surface" even if you don't own the surface.
Get a "Severabilty Clause"
Don't let the Landman threaten you with "Final offer letter BS"
Pass this along to anyone that needs the help. I am not sure if you were offered a lease agreement or a friend, but this will help.
Thanks for the info but the land where we own the land and mineral rights is in the grant district of pleasants co
In a vacuum this is great advice. Pleasants County, WV is fringe at best. Getting these terms would be near impossible.
"It doesn't matter what Trump will do after February."
This would be a good time to do some research on the Looking Glass technology.
The White Hats have the Looking Glass. I have the Insider.
We know what will be.
Don’t waste your time trying to educate DICK Jefferson ....he’s only a small predator troll of the industry, he is merely a temporary hemorrhoid itch on GMS. better luck with your next career move DJ
Just a WAG; Maybe the rumors of two more crackers are the reason to wait. Or maybe China will finally come through with their massive letter of intent to spend huge amounts in WV.....what was it $50 Billion over 20 yrs? Maybe it is a gas>alcohol pant or some other end user that will drive up interest in the area.
This likely has to do with some of the proposed bills in the WV legislature relating to royalties.