What To Watch Out For In Oil or Gas Well Leasing
Millions of oil and gas leases exist in America. All sorts of Americans have created these leases which allow companies to drill for oil or gas on their land. However, plenty of these transactions are made without a real understanding of the fine print. What exactly are we getting into when we sign ourselves up for oil or gas well leasing? The reality is that these leases can be an excellent way to make some extra money and let your land’s resources go to good use. As with any business transaction, some of these companies are well-meaning and honest, and others will not have your best interests at heart. So what should you look out for an oil or gas well leasing?
Before you lease your land to a company, find out what other landowners say about them. Are they reputable? Have they been involved in leasing conflicts before? Do you know people who’ve had positive or negative experiences with them? Don’t ignore a bad reputation, even if the company is offering good money.
How open is the company you’re negotiating with? Are they willing to discuss any concerns you might have? Do they respond to your questions professionally and without long delays? Some companies will even let you visit a current drilling site so you can see how it will operate and get a sense of the machine traffic and noise levels. A reputable company should be open with you about their operations and leases.
Similarly, an honest company should be willing to clarify the terms of the lease with you. Don’t forget that they know the ins and outs of oil or gas well leasing far better than you do. Within reason, they should be willing to discuss and explain the terms of the lease with you. If they don’t want to clarify any terms or clauses that confuse you, they could be shady operators.
Take your time and ask questions before signing a lease. Anyone who turns up on your doorstep and offers cash if you sign with them today is not the most reputable option. An ethical company will let you take your time and have the lease assessed by a professional, so don’t let yourself be rushed.
And what do you need to do to ensure that you’ve got a fair, valuable oil or gas well lease?
Have A Professional Check Your Lease
Get an oil or gas leasing expert to assess your lease and check that it is upstanding and fair. The experts at MAJR Resources have over ten years of experience in oil or gas leasing and land negotiations, so they can help you get a fair deal.
Make Sure You Understand Every Term
Don’t sign the lease until you understand all parts of it. A cursory look at your lease isn’t good enough because the difference between the way we speak and the way we write legal contracts is huge. A professional can help to explain what various terms mean and ensure that they are fair to you.
Know Your Contract Length
Some leases have clauses which allow them to extend the contact length as long as they’re making preparations to drill. However, “preparations” can be as simple as moving a vehicle to the drill site. Make sure you know how long your contract will last and that it allows you to end the lease as agreed.
An oil or gas well lease can be an effective way to make money and capitalize on the land you already own. As long as you fully understand your lease, everyone really can win. You don’t want to cut corners when it comes to leasing your land, so always consult an expert. The experts at MAJR Resources can make sure you get the best deal on your oil or gas well lease, so get in touch if you’re thinking of signing a lease.