More Oil/Gas Answers
Question Library
Ask a question about Oil/Gas
Volunteer
Experts of the Month
Expert Login
Awards
About Us
Tell friends
Link to Us
Disclaimer
|
| |
|
|
| |
| | | |
About Laura M. FitzGerald, CPL
Expertise
I can answer all questions related to any oil and gas leases, mineral sales, pipeline right-of-ways, LA Dept of Conservation Units; negotiating with landmen for leasing your property, assisting in locating owners of suspended funds.
Experience
26 years in the field and owning my own land services company; being a royalty owner, and participating in drilling wells
Organizations
American Association for Professional Landmen, ArkLaTex Assoc. of Professional Landmen, and Dallas Association of Professional Landmen (DAPL), Women's Business Enterprise National Council (WBENC)
Education/Credentials
Certified Professional Landman, attended LSU, Notary Public
| | |
| |
You are here: Experts > Industry > Oil/Gas > Oil/Gas > Gas lease
Expert: Laura M. FitzGerald, CPL - 10/25/2009
Question
The Gas company has to start drilling before other lease's expire.My family has an offer to lease but are not happy with it.They plan to drill weather we sign or not.We are mineral right owners in TX.If they drill without us signing will we be put into a carried working interest,and would that be a good thing sense there would be no cash investment for that? thank you for the chance to ask you this.
Answer
If the company drills before your family signs an OGL, then you will be sent an AFE (Authority for Expenditures) which shows the costs for drilling the Well. Then, you will be asked to either sign the AFE and elect to participate, or you can elect to go non-consent and not sign the AFE.
If you elect to go non-consent, then you will be carried as an 'unleased royalty owner' and at payout, where the Operator recovers his expenses to drill the Well, and any other costs and interests the Texas laws allow, you will be paid your 8/8ths of the production, less the tract's prorated expense portion of the Operating costs, attributable to your tract's participation within the unit for the Well.
On the other hand, if you agree to sign an OGL, you will receive your bonus money up front for signing, and then, on day one of production, you will begin receiving royalty revenue from the production, without incurring any operating expenses.
If you would like for me to handle the neogiations of this lease for your family, I can do so. The fee would be nominal that I would charge you.
You can call my office and speak with Holly Lawrence at 318-219-2464 to find out what information we need in order to do this for you if you would like.
Add to this Answer Ask a Question
|
|
