Out of the blue we recently received a certified letter with an offer to lease oil and gas rights of a property we did not know about. At first, we were worried about a scam, but we do know we had family in the area, and a google search of the companies involved seem they are legitimate. So I think its legit.
I’ve looked through this website. Some of the info is older, and there seem to be a lot of variables. The more I read the less I feel like I know if I’m doing the right thing.
I have questions.
Should we investigate the history of the place? It’s owner? Should we bother to get an oil and gas attorney for not a lot of property- 12.5 acres of mineral rights.
Is this offer reasonable? We were offerred a 5 year lease 15% net proceeds and 2,500 dollars an acre to sign.
@skp - Yes, the lease offer is legitimate. If it’s from EQT, Antero, or SWN, they are the main drilling operators in this area. Before consulting an oil and gas attorney, I recommend calling the Petroleum Landman who presented this lease offer to you and ask him/her what the “per net acre” amount is that you own out of the 12.5 gross acres. West Virginia is a very complex state when it comes to family heirship, leading to what’s called “fractionalization.” As these rights are divided across generations, individual ownership shares become so small that they might no longer generate significant income. For example, you might have 0.67 net acres out of the 12.5 gross acres. Be sure to ask the Landman all your questions; it’s his job to answer them, as he represents the drilling operator.
This is the website for the Wetzel county records. This will be deeds, leases, etc. The older things would have go to through the Vault indexes to find old deed book etc citations. If you go up to County Offices and go to Assessor, then to to Map Cards, if you have information on the District, Map and Parcel, you can see what the map cards say about the owners (surface owners, may also be mineral owners.) If you really have 12.5 net mineral acres, that is worth getting a lawyer. You do not want net proceeds. They take out “your share” of the costs which might make it 9% instead of 15. Read on this website.