Expert: Michael H. Kyle - 7/23/2007

Question
QUESTION: My husband owns 55 plus acres of land in Canton, Pa. Bradford County.  He has been offered 153 dollars per acre bonus consideration paid up within 120 days, to lease for ten years.  He was contacted by a leasing agent/landman through the mail. The information sent reads that my husband will become the official royalty owner once the company verifies ownership and title work.  The company wants to check and see if there is any gas on the property.  This was unsolicited, but we are interested in their offer. We were wondering what the instance of producing wells are in that area. We would like to build there one day. Do you think we should consider this lease option or not?  Should we seek an attorney once a contract is drawn?  W.M.

ANSWER: Well Wendy that sounds generous enough. Go here for a discussion on this: http://www.pogam.org/news/view.asp?pID=532

Be careful though... there are some scammers out there. Never agree to pay for anything up front or commit to something you're not positively sure of.

And yea there has been activity around Bradford. PA like from way back. Do a search for oil gas leases Bradford, PA on you google bar and you can find out.

Building somewhere of 55 acres with some wells around shouldn't be a problem. I can only say that I always consider making money and yes, do get an attorney.

---------- FOLLOW-UP ----------

QUESTION: Just to be clear on my part.  I was talking about Bradford county, Pa, not Bradford, Pa.  Would your answer concerning activity in this area still be the same? Thank you for your help and time. W.M.

Answer
Yes because it's a regional activity across that northern Bradford area You might also check with the Penn State Mineral Resources or whatever it's call there and see what info they can provide. They usually have some regional resources maps and may have pooling ares set up.

Hope this is helpful to you Wendy... Mike