Oil’s up, gas is up: Here’s the leasing low down

The phone call came in cold, three weeks ago. A major gas company was offering $10,000 to buy a 50-foot-wide, pipeline right-of-way easement over about a half mile of timberland I own with three others.

Domestic oil and natural gas are in play from Wyoming to West Virginia. Agents for oil-and-gas (o&g) companies, known as landmen, are leasing land for drilling and production (www.landmen.net). A lot of cash is being waved under a lot of noses.

Most landowners, including us, want to work a deal, because of the money. We also want to be treated fairly, and protect our property and its future value.

The written agreement between landowner (lessor) and company (lessee) governs the money and how development is conducted. Oral agreements don’t count.

Here are points for landowners to consider regarding o&g leases. Read more »