by Croce73 » Thu Jul 31, 2008 8:57 pm
As far as things to consider before we sign a lease, I think that environmental concerns are definitely on that list. I agree that requiring periodic water testing would be a prudent thing to do. I think we should design basic guidelines for environmental protection while drilling. For many of us, the monetary incentive of agreeing to a lease is of prime importance. If we start to ask for extremely specific environmental controls or limitations, companies may agree, but will easily be able to use these as reasons to lower their offers. Also, regardless of how thorough we could be in asking that our environment be protected, there will inevitably be some environmental disruption when you dig thousands of feet into the ground and begin to extract resources in large amounts.
Regarding having us choose where they drill, I don't know how amicable natural gas companies might be to that. I think that part of their offer for our lands includes purchasing the right to extract natural gas from wherever they think it is.
As far as other things we'd like to see in the lease, has anyone entertained the idea of being paid the lease money in installments (or at least a landowner's option to do this rather than accept a lump sum)? For those of us who would receive larger bonus payments, it might serve us better from a tax standpoint to take the money incrementally. The gas companies would probably agree to give us this option, considering that they'd get to keep their money for longer, and allow it to accrue interest. Again, I know that many people would prefer the lump sum, but possibly negotiating an option to take an annuity-type payment might be beneficial.
-Aaron F.