LEASES FOR YOU

LEASES FOR YOU

Postby Rlasky » Wed Jul 30, 2008 8:00 am

If you had a choice of the most important things to be put in the lease, what would they be? Would you sign a lease if you did not get them all? If so, what could you give up?
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Re: LEASES FOR YOU

Postby cooter » Thu Jul 31, 2008 7:05 pm

#1 We would like to be able to choose where they drill
#2 water testing before and after
#3 they pay increase in prop tax
I think we would still sign if we didn't get them all ... if lease is high enough we could give up #3
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Re: LEASES FOR YOU

Postby 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.
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Re: LEASES FOR YOU

Postby Bonafide » Fri Aug 01, 2008 10:36 am

I agree with cooter, besides getting as much money as we can for the lease with the smallest time factor on the lease, But clean up and putting pipelines in as well as the storage very much concern me...
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Re: LEASES FOR YOU

Postby buckshot » Fri Aug 01, 2008 8:33 pm

# 1 with me is also drilling location and pipeline location.I want to be able to have a say in where they can and cannot drill on my property.
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Re: LEASES FOR YOU

Postby RKO333 » Sat Aug 02, 2008 7:14 pm

What is the difference between a signing bonus and a lease? Does the lease $ end when a well is drilled? I would think a signing bonus would be up front and not revocable. Any answers out there?
I also agree with drilling location and pre and post water testing.
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Re: LEASES FOR YOU

Postby Bonafide » Sun Aug 03, 2008 12:03 am

energry companies have been giving out offers with so many dollars per acre, that usally from what i understand is the signing bonus... for example the deposit coalition lease was for 2411 dollars per acre which is nice upfront money, the big money can come from the royaltes. Down in texas they are receiving much much more, in the range of 25000 and up, but the people who own the land only have in many cases 1/2 acre to a acre of land they are drilling in a populated area . ( love to see that in my backyard)
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Re: LEASES FOR YOU

Postby edepots » Tue Aug 05, 2008 5:34 am

Does anyone know how the Deposit coalition was paid their lease bonus? All at once or per year? Did they have an option?
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Re: LEASES FOR YOU

Postby Bonafide » Tue Aug 05, 2008 6:18 pm

A co- worker was in the coalition down there, he received his all at once, I never asked him if they could pay differently.
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Re: LEASES FOR YOU

Postby edepots » Sun Aug 10, 2008 9:03 am

RKO333 wrote:What is the difference between a signing bonus and a lease? Does the lease $ end when a well is drilled? I would think a signing bonus would be up front and not revocable. Any answers out there?
I also agree with drilling location and pre and post water testing.


The lease offered us states that the signing bonus (so much per acre per year) ends when the drill a well on your property...OR if just a tiny portion of your land falls into your neighbors spacing unit. If this happens your land is considered "held in production" and lease payments stop on all of your acreage..

I think this stinks. Which is why I would be interested in receiving the signing bonus for the full term of the lease up front at the signing. But then there is the issue of taxes....?????? What a dilema. I does sound a little like a fantasy..does it not?
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