Gas And Oil Company Royalties

[dianepost]

Has anyone on here ever been offered a signing bonus plus profit sharing,(royalties) from an oil and gas company?
I received a phone call from an oil and gas company tonight offering me a generous signing bonus to, in turn sign a lease to let their company pool natural gas from my property, they also are offering a percentage of the royalties. We own the rights to the mineral under our property and he has also setup appointments with the neighbors that have agreed to sign leases.
The main drilling will be done 2 miles from here and there will be no property damage or reason to enter the property only from underground.
Has anyone ever been involved in this and my question is this, Have you negotiated for a better lease agreement and signing bonus?
thanks

[dangerousfem]

my grandparents did this.. only they opted for free gas for life.. then they bought all gas appliances.. never had to worry about heating costs..ect..

[Eyore]

No I haven't, but I would contact a lawyer before signing anything. Just to look over everything to make sure they don't screw you over somehow.

[ilikefree]

my grandparents did this.. only they opted for free gas for life.. then they bought all gas appliances.. never had to worry about heating costs..ect..

Very smart of them!

[flute]

my grandparents did this.. only they opted for free gas for life.. then they bought all gas appliances.. never had to worry about heating costs..ect..

NO CHIT.

Yea I'd be giving my attorney a call ~

[tracey74]

yeah I read recently that some people are getting ripped off from these people wanting royalties and to drill on their property. some here in wv only offered a guy $15 an acre/ month to drill on(they wanted to pay him) and like %5 of the royalties where a respectable company will give you upward of a couple of hundred dollars per acre/month and like %15 or more from royalties so be careful about this like the OP said and call the main gas/oil company because the people they are sending out their reps are the ones screwing these people out of money and there is a law against them doing it but you have to know your stuff when it comes to this. I read the best thing to do is get an oil pump thingy(I know the big ones are called derricks not sure of the little ones) and pump it yourself and then sell it some guy in indiana or illinois is doing that he pumps an average of 3 barrels a day and sells it to a refinery in ohio and by the end of this year its estimated that he will earn close to half a million. it was all over the news so maybe do a search and maybe you can find some helpful info

[Jolie Rouge]

Contact a lawyer before you sign.