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Has anyone dealt with gas wells being drilled on their property?

Discussion in 'BlackHat Lounge' started by angelas111, Sep 8, 2009.

  1. angelas111

    angelas111 Jr. VIP Jr. VIP Premium Member

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    I got a letter in the mail the other day from a company that drills gas/oil wells. They are putting one on my neighbors property. They want me to sign a lease that offers a $300 sign on bonus and my share of 12.5 of the royalties. I have an 1.1 acres. So I guess my amount of the roylaties would be based off that. I have been told you can negotiate a higher sign on bonus. Does anyone have experience with this?
     
  2. wowhaxor

    wowhaxor Executive VIP Premium Member

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    No personal experience but talk to an attorney for sure. Even if you don't hire them an hour consultation could be worth your while. That being said in many areas companies own the mineral rights, they buy them from the state, and you are SOL if they want to do something on your property when it comes to negotiating.
     
  3. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    i once had a client in a similar situation, and one thing you can do is sell the royalties in advance for a lump sum of cash. depending upon the royalties, you could get a large
    amount upfront... :D
     
  4. oldenstylehats

    oldenstylehats Elite Member Premium Member

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    If it is the company I think it is (and it probably is based on your location) they are pretty easy to deal with and have a very good reputation around the Western PA/Eastern OH region. I'd ask them for as much information on the process as you can. I know that some people have been able to negotiate substantial reductions in their utility costs. I've heard of the pipelines never getting completed. I've also heard of people making a considerable amount of money from these pipelines.

    Get more info for sure.
     
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  5. angelas111

    angelas111 Jr. VIP Jr. VIP Premium Member

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    will do. thanks for the input. will post back how it goes!