what if you don't want them on your property?

has anyone sold the rights but with the stipulation that they can not come on your property? Will they do it this way, and if so do they offer you less? Will you still get the up front bonus per acre and also the monthly royalty? How much do you have to pay uncle sam for the tax on the income? Lots of questions, but I have been approached by Kenyon, live in New Manchester area, like the rest of you. I just don't want to get taken advantage of. Lets work together for the good of all of us.

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Permalink Reply by Todd on October 18, 2011 at 1:02pm

David,

#1 You are only leasing your mineral rights for a 5 year term.  Do not sell your mineral rights to anyone since we are in the bull's eye of the largest oil and gas play in the country if not the world!

#2 You can absolutely let them know you don't want the wellhead on your propery.  That's the advantage of horizontal drilling.  They drill down to the desired depth of shale then turn the drillbit at a 90 degree angle and drill in all directions about 4000 to 6000 feet.  Then they frack the oil and gas out from underneath your property.  This usually involves about 600 acres per 1 unit.

#3  Make sure you negotiate for Gross royalty.  Do not accept post production costs in your royalty percentage or else you will not be able to verify your income at http://www.dep.wv.gov/oil-and-gas/databaseinfo/Pages/searchoperator...

Let me know if you have any other questions!  Todd

 

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