Prospective Liability?

Oil and Gas Leasing Help
1

Hello. Brand new to the forum. Thanks for being here.

I have been offered a gas lease by Ascent on ¼ acre of mineral rights in Jefferson County, Ohio. I am likely to make little or no money, but I am very concerned about liability. Ascent has agreed to add three clauses to their contract: indemnity, warranty of title, and no surface rights. I have been trying to educate myself for months now, but cannot find answers to three nagging questions:

  1. If I sign the lease, is there any liability risk to my current/existing assets?

  2. If there is risk, is it diminished or eliminated if I am force pooled?

  3. Is it possible that the gas company’s title exam could show that I owe taxes or fees on these mineral rights (that I never knew existed prior to being contacted by the landman)…or are there no taxes on mineral rights?

2

The answer to that question is based upon the oil and gas law in your state. Suggest you contact the NARO (National Association of Royalty Owners) chapter in your state for guidance on where to find that information. www.naro-us.org

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