Pre-Lease Questions
Question: How long is a normal lease?
Answer: The average length of a lease is heavily dependent upon the area. In northwestern Pennsylvania, for instance, the primary lease term is often two years. However, you should consult with a legal advisor or people within your community to figure out what is "average" for you.
Question: Will there be any changes around my home?
Answer: Likely, yes. Fences and roads may be built and destroyed (whether or not you are compensated depends on the lease). And any livestock may also be moved and crops are often destroyed. Expect to see a great deal of large equipment when the drilling begins. The amount of noise and when it is made can be negotiated in the lease.
Question: Do I get free natural gas if I allow drilling on my property?
Answer: It depends on the lease agreement! This is not a commonly included feature of many agreements, however.
Question: How much should I expect to receive in exchange for leasing my land?
Answer: Again, this changes depending on what area of the country you are in, the amount of land a company hopes to lease from you, whether or not the drilling company is willing to compensate you for a variety of other potential costs to you, and the list, from there, goes on.
Some companies may attempt to wait you out, hoping that you will eventually come around because you think some additional revenue is better than none. It is not, however, common to receive millions of dollars upon signing. This is an area that you should heavily consider hiring a legal consultant to explore.
Question: How much should I expect per acre?
Answer: Again, this varies greatly by region.
Question: What are mineral rights?
Answer: They are rights of the owner of the property to mine or produce any resources below the surface of the property. They are not the same as surface rights.
Question: How long will I receive royalty checks?
Answer: As long as the well is producing, though it may take several years before drilling begins and it often takes a full month to receive the first check.
Question: What is a pool?
Answer: The joining together of tracts of land, typically small or a portion, in order to have enough acreage to obtain a well drilling permit and to share production and benefits. These may be either forced by a majority or joined in order to have enough land to drill.
Answer: The average length of a lease is heavily dependent upon the area. In northwestern Pennsylvania, for instance, the primary lease term is often two years. However, you should consult with a legal advisor or people within your community to figure out what is "average" for you.
Question: Will there be any changes around my home?
Answer: Likely, yes. Fences and roads may be built and destroyed (whether or not you are compensated depends on the lease). And any livestock may also be moved and crops are often destroyed. Expect to see a great deal of large equipment when the drilling begins. The amount of noise and when it is made can be negotiated in the lease.
Question: Do I get free natural gas if I allow drilling on my property?
Answer: It depends on the lease agreement! This is not a commonly included feature of many agreements, however.
Question: How much should I expect to receive in exchange for leasing my land?
Answer: Again, this changes depending on what area of the country you are in, the amount of land a company hopes to lease from you, whether or not the drilling company is willing to compensate you for a variety of other potential costs to you, and the list, from there, goes on.
Some companies may attempt to wait you out, hoping that you will eventually come around because you think some additional revenue is better than none. It is not, however, common to receive millions of dollars upon signing. This is an area that you should heavily consider hiring a legal consultant to explore.
Question: How much should I expect per acre?
Answer: Again, this varies greatly by region.
Question: What are mineral rights?
Answer: They are rights of the owner of the property to mine or produce any resources below the surface of the property. They are not the same as surface rights.
Question: How long will I receive royalty checks?
Answer: As long as the well is producing, though it may take several years before drilling begins and it often takes a full month to receive the first check.
Question: What is a pool?
Answer: The joining together of tracts of land, typically small or a portion, in order to have enough acreage to obtain a well drilling permit and to share production and benefits. These may be either forced by a majority or joined in order to have enough land to drill.