How to Lease Land to a Natural Gas Company

Oil and natural gas make your property a valuable asset.

Landowners should survey their land for natural resources such as oil and gas, which are particularly lucrative. These resources are in high demand because rising population growth has led to an ever-increasing need for energy. If a company offers you a significant amount of money in a natural gas lease agreement, there is a list of things you need to consider before leasing the land.

Things You'll Need

• Legal contract
• Oil and gas company
• General attorney
• Criminal attorney
• Gas and oil attorney

Instructions

Negotiating The Deal

1. Before signing the contract, be aware of the natural resources on your land. Do not sign or accept anything before surveying your land. This can prevent the loss of thousands of dollars.

2. Join a landowners group to learn more about the process. If your land has natural gas underneath it, so might the surrounding area. Membership in a landowners group strengthens your position in negotiations and cuts down on legal costs per landowner.

3. Hire a set of attorneys to review the land lease agreement and other legal issues. Hire a general attorney for normal legal issues or a criminal attorney if there is trouble with the law. Consult an oil and gas attorney to negotiate the lease.

4. Sign the lease agreement after reviewing it with counsel. Begin to collect royalties from the gas company and adhere to any stipulations outlined in the agreement.

5. Make sure the leasing company sends you royalties and adheres to the lease terms. If not, consult counsel to determine the next course of action.

References

• Natural Gas Leasing