Review oil and gas leases carefully before you sign anything
Individuals need to be extremely thorough when reviewing the terms of oil and gas leases.
September 11, 2013 /24-7PressRelease/ -- Review oil and gas leases carefully before you sign anything
Article provided by Manfred Sternberg & Associates, PC
Visit us at http://www.msternberg.com
Whenever there is a new discovery or an oil or gas deposit in Texas, companies start aggressively pursuing landowners in the area. Many individual landowners would not have the financial resources necessary to collect these minerals on their own, and therefore look to lease or sell the mineral rights connected to the property.
Unfortunately, many of these individuals find themselves entering into bad business deals, usually because they do not understand the contracts that they are signing. Often, these landowners eventually find themselves trapped in disputes concerning the oil and gas rights, and this can be very costly for everyone involved.
Many of these properties have been passed down through generations. Before these landowners make any deals, they need to be sure that they actually own the rights that they intend to transfer. This means examining the title for any other individuals who may be able to prevent these deals from occurring, as if they are neglected at this time, they may be able to bring suits later that could bring the operation to a standstill.
Additionally, it is important that the landowners understand the value of the rights they are selling or leasing. Oil and gas companies want to protect their interests, and the offers that they make may be substantially less than the minerals are worth. The contract should carefully list the company's obligations toward recovering the minerals, as well as the payment the landowner should receive.
Also, it is extremely important that the agreement specifies a time-period that the agreement will cover. Landowners need to be clear regarding the duration of the business relationship, so that they understand when the company's access to the deposits will expire. Without these restrictions, the companies may retain certain rights for an indefinite period of time.
There have been countless situations where landowners have found themselves on the wrong end of a bad agreement, and you cannot let this happen to you. It is important that the arrangements you may are reflective of the rights that you wish to convey. If you do not understand a proposal being offered to you, speak to an experienced attorney before you sign anything.
An attorney can review the documents with you, and answer any questions that you may have. This will also allow you an opportunity to make sure that the documents you create will take your needs as landowners into consideration. You need to be completely certain that you are not restricting your ability to enjoy your land, now and in the future.
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