Gas leases, exploration, drilling, etc.

[JB]

I own The Hideout in partnership with my daughter and her partner.<br /><br />We have a proposal to lease our mineral rights for gas exploration and potential drilling. If they found gas there would be royalties for as long as the well produces.<br /><br />The girls are holding out on the notion that they are saving the pastoral nature of The Hideout and planet. I am in favor of a lump sum of more than half my annual income, plus the potential of royalties to follow.<br /><br />I am assured that any disruption of my environment will be completely restored when they are done. All of my neighbors have signed leases.<br /><br />Who has real experience with this sort of deal?<br /><br />What happened? Did they leave a mess? Is there a producing well on your land? How does it affect you?<br /><br />Any real world experiences would be welcome.<br /><br />Thanks.

 

[dolluper]

Re: Gas leases, exploration, drilling, etc.

I guess the J is for Jed like in the Clampits <br />Don't know anything about it but I'dd get me one of thoose fancy Lawyers that can read the fine print real well [no pun intended] that works on your side only [if possible] The enviralmental people will for sure be jumping all over that you can be assured So don't be a broke sheep

 

[Realgun]

Re: Gas leases, exploration, drilling, etc.

Will be real cool pedaling up the the hideout due to all the nature but no fuel!

 

[NMplayer]

Re: Gas leases, exploration, drilling, etc.

JB, I just saw this. My family has a ranch in southern New Mexico. Same deal they wanted to do exploration.<br /><br />They found natural gas, which sounds good huh? The trouble is that they don't always pump it when they find it. That depends on the market, politics and a whole lot of other things that I don't understand We did get some up front money for it though.<br /><br />As far as tearing things up goes, these guys know their business. They are used to dealing with enviornmentalisits and they try hard. In my opinion, they didn't tear much up while they were working. They just cut a few little roads to get in to their wells. They only take out what they absolutely had to. They alway closed the gates and even helped us get some cows back in one time.

 

[JB]

Re: Gas leases, exploration, drilling, etc.

Thanks, NMplayer.<br /><br />That's good to know. We signed the lease this morning. . . after several hours of showing my girls that their fears were unfounded.<br /><br />Got the bux now to take the love of my life back to Hawaii this Summer.. . .for the 50th anniversary of our wedding.

 

[Kenneth Brown]

Re: Gas leases, exploration, drilling, etc.

Sorry I missed this post JB. Be wary. They pay very well, if you make them. Hopefully in your lease it says something to the effect that any thing done to your land and which you are compensated will be payed out as damages. If it is not paid as damages then it becomes taxable. When they drill they are going to make a hell of a mess. The will do a decent job of cleaning up after thereselves though. DO NOT let them put it just anywhere, keep it a long ways from your house. I have a well in my front yard, I can hit it with a rock, talk about a Hoover. You will recieve money from the actual gas that they pull plus money from damages. The will buy clay from you if you have it, which means they will dig you a pond where you want it and pay you for it. They will drill a water well and pay you for that. The water from the well will go into the pond and they will pay for that also. They will pay for any inconvinence to animals or grazing that you may loose. They will fence off around the well site if requested. Most well sites get paid out at $1700 an acre and almost all are figured at 4 acres, even though very few are that big. You will get paid for the road they have to put in. Same for pipelines. I live in the largest gas producing county in United States( Freestone). We made the front page of Wall St. journal. Never seen so many 7 strand barbwire fences. Ask away if anything else comes up, and sorry I was late.

 

[JB]

Re: Gas leases, exploration, drilling, etc.

Our lease does not allow drilling within 500' of a home, and only in a location I agree to. They will pay $2000 damages for any well they drill, and use less than 1/4 acre for any well that produces.<br /><br />Our lease was prepared for us by an attorney specialized in oil/gas leases, and even got the company to pay his fee.<br /><br />Thanks for the input. It reassures me that we did it right.

 

[Kenneth Brown]

Re: Gas leases, exploration, drilling, etc.

$2000 total or minimum? Thats awful low if thats total. A land owner in my area can usually expect around $8000 in damages minimum for every well. When it comes time to drill look it over real close. Contact me on here or at my email. I have 36 acres without minerals and they THOUGHT they were going to drill the other day. Being that I just purchased it this spring I knew they didn't have a lease. I threatend (sp?) legal action and physical action (Mr S&W talks loud) for tresspassing. Two days later they apologize for being in the wrong spot, should have been on the parcel east of me.

 

[kenimpzoom]

Re: Gas leases, exploration, drilling, etc.

During drilling, make friends with the "company man" and the "toolpusher". COmpany man works for the oil company, toolpusher is the boss of the workers.<br /><br />Keep em happy, and they will take care of your place.<br /><br />During drilling, Just be sure to not let them dump any oil on your land. It is illegal, but I have seen it happen many times. And I mean a lot of oil.<br /><br />The pond they build is called the "reserve pit". It is where all the cuttings from the hole go to, as well as the drilling fluid that they dump. Some wells are drilled "closed loop" which means they dont dump any cuttings or mud, they haul it all away.<br /><br />Driling Mud is basically dirt and water, it wont harm the envionment at all. In fact, they sell the mud which is used to fertilize fields. The only concern is heavy metals, have the pond checked for all of them.<br /><br />Ken, resident oilfield trash

 

[neumanns]

Re: Gas leases, exploration, drilling, etc.

I find it funny that the price of gas went up 10 cents a gallon about the same day JB signed his lease....I think he got a better deal than he is lettin on!!