Help! Mineral Rights/Company trying to lease them!
05-12-2008, 11:13 AM
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Help! Mineral Rights/Company trying to lease them! There is a well-established oil company trying to get our neighborhood to sign a drilling lease for 3 years and we get money (of course) if we sign. In the interest of not being able to afford an attorney, does anyone know anything about this?
For 3 years they can put a drill site on my land?
Can they go anywhere on my land and do this?
What if they want to drill under my pool?
Is there any possibility I could lose my house if I sign this lease?
They said they want to drill 1 mile down, could this affect my foundation, land-shifts, etc.?
How do I know if what they are offering is enough money for what I might run into with this situation?
For 3 years they can put a drill site on my land?
Can they go anywhere on my land and do this?
What if they want to drill under my pool?
Is there any possibility I could lose my house if I sign this lease?
They said they want to drill 1 mile down, could this affect my foundation, land-shifts, etc.?
How do I know if what they are offering is enough money for what I might run into with this situation?
Last edited by fasttagurl; 05-12-2008 at 11:14 AM. Reason: misspelled word
05-12-2008, 11:21 AM
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Do you know what they would be drilling for? How much of it is on your land? Are all neighbors getting the same $ amount? Find out all that stuff and you can figure out if what they are offering is fair.
05-12-2008, 11:41 AM
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There is a well-established oil company trying to get our neighborhood to sign a drilling lease for 3 years and we get money (of course) if we sign. In the interest of not being able to afford an attorney, does anyone know anything about this?
For 3 years they can put a drill site on my land?
Can they go anywhere on my land and do this?
What if they want to drill under my pool?
Is there any possibility I could lose my house if I sign this lease?
They said they want to drill 1 mile down, could this affect my foundation, land-shifts, etc.?
How do I know if what they are offering is enough money for what I might run into with this situation?
For 3 years they can put a drill site on my land?
Can they go anywhere on my land and do this?
What if they want to drill under my pool?
Is there any possibility I could lose my house if I sign this lease?
They said they want to drill 1 mile down, could this affect my foundation, land-shifts, etc.?
How do I know if what they are offering is enough money for what I might run into with this situation?
How much acreage do you have? You said "neighborhood", so that tells me you have a lot and not 10 acres plus of land. If it's a lot, with city utilities, the liklihood of them drilling in your back yard are minimal.
They might need access to your place to do some siesmic studies, but I wouldn't think you would see any drilling rigs in your back yard.
Current technology allows them to drill under your house from a rig a mile away or so. Collateral damge is typically non-existent.
They are curretnly drilling under areas of Ft. Worth with large office complexes. So I doubt your pool or foundation will be impacted.
You are probably being offered 75% of the fair market value. But realize, they only need a percentage of the neighborhood to agree. Once they get the percentage, those that were holding out for more money are SOL ...
05-12-2008, 12:02 PM
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Drilling for oil - I believe they found some. One, many, or NO drilling sites might be on my land. We get a set amount based on how much acreage each home has. We have .62 on an acre.
05-12-2008, 12:06 PM
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How much acreage do you have? You said "neighborhood", so that tells me you have a lot and not 10 acres plus of land. If it's a lot, with city utilities, the liklihood of them drilling in your back yard are minimal.
They might need access to your place to do some siesmic studies, but I wouldn't think you would see any drilling rigs in your back yard.
Current technology allows them to drill under your house from a rig a mile away or so. Collateral damge is typically non-existent.
They are curretnly drilling under areas of Ft. Worth with large office complexes. So I doubt your pool or foundation will be impacted.
You are probably being offered 75% of the fair market value. But realize, they only need a percentage of the neighborhood to agree. Once they get the percentage, those that were holding out for more money are SOL ...
They might need access to your place to do some siesmic studies, but I wouldn't think you would see any drilling rigs in your back yard.
Current technology allows them to drill under your house from a rig a mile away or so. Collateral damge is typically non-existent.
They are curretnly drilling under areas of Ft. Worth with large office complexes. So I doubt your pool or foundation will be impacted.
You are probably being offered 75% of the fair market value. But realize, they only need a percentage of the neighborhood to agree. Once they get the percentage, those that were holding out for more money are SOL ...
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05-12-2008, 01:36 PM
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No! He should be getting more like $45,000 if you base it off around $30,000 per acre. At least that's what they are offering around the Dallas area for lease rights. No Deal!
05-12-2008, 01:36 PM
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Michelle, the company that is attempting to lease or buy your rights is the same one that has approached most of the folks in GP/Arlington. They are wanting to drill for natural gas on the "Barnett Shelf".... google it.
They spider drill and you wont even know they are drilling. They will establish some drillers in various spots in your area, but most are concealed. Question is, do you believe the price of natural gas is going up, and do you believe there is more gas than they are saying, and do you want to retain your rights after you sell your home etc......
No need for an attorney. Just read up on the net.
They spider drill and you wont even know they are drilling. They will establish some drillers in various spots in your area, but most are concealed. Question is, do you believe the price of natural gas is going up, and do you believe there is more gas than they are saying, and do you want to retain your rights after you sell your home etc......
No need for an attorney. Just read up on the net.
05-12-2008, 01:42 PM
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Michelle, the company that is attempting to lease or buy your rights is the same one that has approached most of the folks in GP/Arlington. They are wanting to drill for natural gas on the "Barnett Shelf".... google it.
They spider drill and you wont even know they are drilling. They will establish some drillers in various spots in your area, but most are concealed. Question is, do you believe the price of natural gas is going up, and do you believe there is more gas than they are saying, and do you want to retain your rights after you sell your home etc......
No need for an attorney. Just read up on the net.
They spider drill and you wont even know they are drilling. They will establish some drillers in various spots in your area, but most are concealed. Question is, do you believe the price of natural gas is going up, and do you believe there is more gas than they are saying, and do you want to retain your rights after you sell your home etc......
No need for an attorney. Just read up on the net.
05-12-2008, 02:59 PM
#11
Wizeass is on the right track but proper spelling will yield better info:
Barnett Shale - as the oil and gas is trapped between the layers of shale
http://www.google.com/search?hl=en&q=barnett+shale
You need to get with your neighbors and work together, IMO. If they really want to, with directional drilling, they can take it right out from underneath you, you'll never know it, and have hell proving it. Take advantage of the fact that they are acting in good faith now and cooperate with the neighbors. Hire an attorney as a group, split the costs, and make a LONG TERM sweetheart deal for the oil company and your group. Make sure you are making royalties for as long as the property produces.
Barnett Shale - as the oil and gas is trapped between the layers of shale
http://www.google.com/search?hl=en&q=barnett+shale
You need to get with your neighbors and work together, IMO. If they really want to, with directional drilling, they can take it right out from underneath you, you'll never know it, and have hell proving it. Take advantage of the fact that they are acting in good faith now and cooperate with the neighbors. Hire an attorney as a group, split the costs, and make a LONG TERM sweetheart deal for the oil company and your group. Make sure you are making royalties for as long as the property produces.
05-12-2008, 07:45 PM
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Its funny how a lot of people over react like they're going to drill right in their back yard. Then after the well is done they become uber greedy and get all bent out of shape if their check is $.01 different from what they think they should be getting. Unfortunately the prices fluctuate.
My wife works for XTO. As Wizeass said, they are drilling for for natural gas here not oil. We have 3 wells owned by Chesapeak in my neighborhood and other than driving by where they were drilling or the truck traffic you'd never know they were there. As stated before, they can get at the reserves under your neighborhood from a mile away.
I'd advise everyone in your neighborhood getting together and discussing things and approaching this whole situation as a group of homeowners. You can get them to put a nice stone or brick wall and landscape around the well site when done if you are organized and put it in the contract. Here, they just fenced the area off because nobody had mineral rights so we had no say in any of it.
Chesapeak has an infomertial about the Barnette Shale area, it is actually pretty informative. Try finding it online.
One thing I'll add. Don't bank on the check coming in every month. If there is an accounting error where they over pay you one month, they just won't cut checks until the amount is made up.
My wife works for XTO. As Wizeass said, they are drilling for for natural gas here not oil. We have 3 wells owned by Chesapeak in my neighborhood and other than driving by where they were drilling or the truck traffic you'd never know they were there. As stated before, they can get at the reserves under your neighborhood from a mile away.
I'd advise everyone in your neighborhood getting together and discussing things and approaching this whole situation as a group of homeowners. You can get them to put a nice stone or brick wall and landscape around the well site when done if you are organized and put it in the contract. Here, they just fenced the area off because nobody had mineral rights so we had no say in any of it.
Chesapeak has an infomertial about the Barnette Shale area, it is actually pretty informative. Try finding it online.
One thing I'll add. Don't bank on the check coming in every month. If there is an accounting error where they over pay you one month, they just won't cut checks until the amount is made up.
05-12-2008, 09:06 PM
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smartest thing you can do is to join a co-op, I live by lake arlington and theres a huge home owners meeting every now and then so that they cant get that percentage. Someone in the neighborhood with a huge lot got ripped and has a sign in their front yard not to lease with someone but I forget who at the moment
05-13-2008, 08:00 AM
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A rep came over last night and answered a lot of questions. We are probably going to go for it. In the lease it says they cannot come on the property, or drill directly from the ground on our property, but will only drill horizontal at least 300 feet down/under. He said it is illegal for them to drill under the property if we do not sign the lease. It is pretty good money they are offering, but the term is for 20-22 years, and not 3 years like I thought. Some of the homeowners have established their own group (with a pro bono attorney) because they believe they will get more money, so these group of people do not get the offer right now. Since I know royalties may not amount to anything, does the one lump sum payment of $15,000 sound good if it's for 20-22 years, basically the entire time I will be in the home?
05-13-2008, 09:44 AM
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I would join the rest pf the neighbor hood and get the attorney also. The $15k may sound like music to your ears now but 10 years later when someone else id knocking on your door wanting to lease it also and its tied up for another 12 years, it wont be so nice. Now what you can do is add a clause in the addendum of the lease stating that you (the oil company) has X amount of years to produce or start production on the property and if it doesnt happen then they (they oil company) has to relinquish there rights to the lease.
What it sounds like to me, with them coming in there and taking such a long lease is that they have no intentions to ever drill. What they will do is hold those leases and sell them for a profit to someone that has intentions to drill your area.
What it sounds like to me, with them coming in there and taking such a long lease is that they have no intentions to ever drill. What they will do is hold those leases and sell them for a profit to someone that has intentions to drill your area.
05-13-2008, 10:01 AM
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I would join the rest pf the neighbor hood and get the attorney also. The $15k may sound like music to your ears now but 10 years later when someone else id knocking on your door wanting to lease it also and its tied up for another 12 years, it wont be so nice. Now what you can do is add a clause in the addendum of the lease stating that you (the oil company) has X amount of years to produce or start production on the property and if it doesnt happen then they (they oil company) has to relinquish there rights to the lease.
What it sounds like to me, with them coming in there and taking such a long lease is that they have no intentions to ever drill. What they will do is hold those leases and sell them for a profit to someone that has intentions to drill your area.
What it sounds like to me, with them coming in there and taking such a long lease is that they have no intentions to ever drill. What they will do is hold those leases and sell them for a profit to someone that has intentions to drill your area.
yep...leasing up everything around them is a common practice...i am a company man that drills these wells. they are expanding out to see just how far they can go with these wells in the shale...