Originally Posted by okiemom
Thanks so much,
I have been getting calls that are getting more and more persistant. I know something is up. I also understand that if I go to the courthouse I can find out how many mineral rights have been bought up and what other activity is in the area and for how much they leased the land.
Some of what you are writing is a little confusing. The correct terminilogy is needed for us to be on the same page as you are.
You won't be selling a mineral lease. What you will be doing is leasing. Selling a lease would be having procured a lease in a leasing agreement with someone else or if you have purchased a lease to resell.
A lease for oil and gas rights in not selling or transfering mineral rights. You retain them, but are extending the right for the leasing agency to drill on the land or even SELL the LEASE to another party. Them selling the lease won't affect the lease agreement, only change who holds the other side of the lease.
You mention going to the courthouse to find out how many mineral rights have been bought up. Buying up mineral rights and leasing them are two entirly different things. If you own the mineral rights you can sell them which is permanent unless you would by them back. Leasing is temporary and until the lease expires or is extended with another lease agreement.
It seems every state or area within a state is different. Where I hold land in Kansas a three year lease is common. About all one can squeeze out of a leasing agency (maybe oil company) is $40 per acre without any overrides that others have mentioned.
One thing I would watch out for is some lease agreements that give the right to pool your land in with others so that if a well is developed you all share in the pie. That is fine and dandy unless the well is on your property and others get a piece of it. The leasing companies often use this tactic now so that they aren't required to drill wells on adjoining land that are called offsets. Offsets are frequently required by states so that the oil isn't pumped out from under your land without you receiving benefit from it.
While leasing doesn't provide great amounts of money if a well is developed it can in the end. Because of that you may wish to have an attorney advise you if you should be offered and so inclined to accept a lease. Of course that is just my opinion.