Oil and gas newsletter available online
New March issue of the Michigan State University Extension oil and gas newsletter is now available online.
- How do you remove an invalid or expired lease from the register of deeds records?
- Oil and gas lease effect on the purchase of development rights.
- New MSU Extension fact sheet: Compulsory Pooling and the Landowner That Has Not Signed an Oil and Gas Lease.
This issue answers one of the most commonly asked questions, “How do I remove an invalid or expired lease from the register of deed’s record?” This situation occurs when a mineral owner has signed an oil and gas lease in the past that has expired, but it is still on record at the Register of Records office. Attorney Henry L. Knier Jr. of Smith Martin Powers & Knier, P.C. answers this question and lays out the procedure to follow.
Kendra Wills, Michigan State University Extension educator and former staff person for the Kent County Purchase of Development Rights Program, discusses one of the options available to preserve an agricultural property through the purchase of development rights. She encourages property owners who would like to preserve their farmland through this type of program to contact the local PDR program manager before signing an oil and gas lease.
When a mineral owner is evaluating an oil and gas lease, the topic of forced pooling is frequently mentioned by the company’s land man. MSU Extension receives more questions regarding compulsory pooling than any of the other terms related to the oil and gas lease. A new fact sheet titled “Compulsory Pooling and the Landowner that has not Signed an Oil and Gas Lease” discusses this subject in depth and includes an example oil well and the calculations that would be utilized to determine the un-leased mineral owner’s compensation if the compulsory pooling option is chosen instead of signing the standard oil and gas lease.
Prior oil and gas newsletters and additional information, including information for landowners in negotiating the oil and gas lease, a schedule of upcoming educational meetings, hydraulic fracturing, horizontal drilling, rights of way guidelines, and other related information is available on the Oil and Gas program page. This information can be downloaded to share with others interested in these topics. With some effort, this information can assist a landowner in the development of an oil and gas lease agreement that is a positive win – win agreement between the landowner and oil development company.