What do you good folks think of this one?
Lessee shall have the right to use, free of cost, gas, oil and water produced on said land for its operations thereon, except water from wells of Lessor.
I would think they could pay a royalty on it! Our attorney made the comment that it is pretty much always in there as far as leases go. Back in the day when my grandfather was farming and he had an oil well, he ran it in his tractor somehow.
Rick,
I feel so sorry for operators. Down on their luck. Not making any money.
I used to run drip gas in my ole 53' Ford back in 1961. It ran good on that stuff. Only thing bad about it was you cut the key off to kill your car and it would keep on running. So you would have to put it in high gear and let out on the clutch to kill the engine. My neighbor back then was a pumper in the oilfield and always had 3 barrels of drip gas behind his garage. He told me anytime to help myself. And I did. Free gas. That ole Ford liked that stuff.
Clint Liles
I would just say no. You should be paid for all oil and gas produced and saved. The water belongs to the surface rights and does not belong in an oil and gas lease in my opinion, certainly not as a freebie. If the operator drilled a water well on your land and depleted your aquafer, it's still your water and the water may be more valuable than what you receive in royalty from the oil and gas. Pipelines would also be another surface right. I would ask for a straight oil and gas lease with no free rights to my water. surface (pipeline), house, car, hunting and fishing rights or anything else, just oil and gas. Everything else may be negotiable.
Dear Rick,
Our form provides that the royalty owner is paid on all oil and gas produced and saved, not produced and sold. It also does not have the free use language in our lease.
Go here for a more in-depth discussion:
http://www.mineralrightsforum.com/profiles/blogs/gas-produced-and-sold
Clint,
Reminds me of the time me and my buddies had the bright idea to siphon some "gas" from a dozer on a construction project. That old Ford did run on diesel but it was coughing and smoking as we lurched down the road!
Michael,
That reminds me of the times when I drove a diesel truck. Add about 5 gallons of gasoline to 75 gallon tank of diesel and make that diesel engine more powerful.
Clint Liles
Michael Hutchison said:
Clint,
Reminds me of the time me and my buddies had the bright idea to siphon some "gas" from a dozer on a construction project. That old Ford did run on diesel but it was coughing and smoking as we lurched down the road!
Clint, I was a truck driver too. One morning I stopped at a truckstop at the Wynnewood, Ok. exit and put 50 gal. of diesel in the tank of my gasoline powered 6 wheeler. At about the same time another driver had put about 100 gal. of unleaded in his big truck when I hollered at him to stop! Neither one of us made our deliveries that day. The tanker driver who delivered that morning was in big trouble!
R W, Buddy,
That was what I was thinking.
I wonder if they pay taxes to the state on what is used on the well site?
Thanks
I don't think they do, that is pay taxes on oil/gas products used on site, I think it's just a byproduct of doing business. Of course, why should they pay taxes on something they produced themselves from minerals they own ? That's right, they own the oil and gas if you lease, there is merely the possibility of reversion if/when production stops. I do believe that they deduct flared gas as a loss though.
Rick Howell said:
R W, Buddy,
That was what I was thinking.
I wonder if they pay taxes to the state on what is used on the well site?
Thanks