Oil and gas leasing webinar and DVD available
As a property owner, when you read the oil and gas lease you are offered, do you understand what you have read?
Landowners who have never dealt with leasing their mineral rights for oil and gas production, upon reading a lease, may find that they have difficulty understanding the lease language. Determining the impact that the lease terms have on potential income from not only the oil and gas, but surface facilities and pipeline installations can be difficult to sort out. How can the environmental integrity of the property such as water aquifer quality, soil erosion and location of oil and gas wells relative to buildings, homes and agricultural operations be minimized?
There are key words and phrases in the oil and gas lease that relate to all of these situations. Before any exploration can begin, the landowner and the oil company must negotiate and agree to the terms regarding the rights, privileges and obligations of both parties throughout the exploration and production stages. Negotiation of these terms may be a landowner’s first exposure to an oil and gas lease. Because of the complex legal nature of the leasing process, novice landowners may be at a disadvantage when dealing with an experienced land man or oil company. Finding resources to aid in this process could help to relieve some of the stress and may help lead to a better win-win lease agreement.
An oil and gas leasing webinar (narrated slide presentation) that discusses what landowners need to know about oil and gas leasing is now available at MSU Extension Oil and Gas information site.
It is titled “New MSU Extension Oil and Gas Leasing Video.” Many sections of leases are negotiable and can be altered, if the landowner has the knowledge to know what pitfalls to avoid in a lease. The presentation discusses some alternatives to the language in the “standard” oil and gas lease that many landowners may find helpful. By knowing what terms are acceptable to other landowners you can negotiate your own terms that are consistent with your goals. With the assistance of the Department of Natural Resources Communications, this same presentation is available as a DVD.