I recently inherited so small piece of land(less then an acre in a 1200 acre unit) from my grandfather along with the mineral rights, ( in Vermilion Parish, LA.) when the leasing company approached my grandfather to lease his land they missed this strip of property in the origional leasing round. Now that the well has been completed and is about to come into production in the next few weeks, I have been approached by the company to sign a lease, they are offering $350 an acre and 1/4 interest. I know I can sign, counter offer, or not sign at all and become working interest partner. What are my liabilities if I do not sign and become a working interest partner.
Thanks in advance
You do not want to be a working interest partner in the well with that small an interest. Being a working interest partner with an interest as small as yours would mean that the probability of being booked keeped to death is high
THIS has happened to me too,recently,I was contacted by an oil-Drilling CO,wanting me to sign away my "deceased-husband's" rights to some land,owned by his GrMother,in Bottineau,ND...there are a lot of heirs to this property..
I REFUSED TO DO SO,for i knew how much love my Husband and his Mother etc,loved that land...how do I find out,who has gone ahead and drilled??,and who did this,without "my signature"--yes,I am one of the top-two,who would benefit the most..Rosie...please advise
Did they want to buy or lease?
R.m. Iverson said:
THIS has happened to me too,recently,I was contacted by an oil-Drilling CO,wanting me to sign away my "deceased-husband's" rights to some land,owned by his GrMother,in Bottineau,ND...there are a lot of heirs to this property..
I REFUSED TO DO SO,for i knew how much love my Husband and his Mother etc,loved that land...how do I find out,who has gone ahead and drilled??,and who did this,without "my signature"--yes,I am one of the top-two,who would benefit the most..Rosie...please advise
My siblings and I have decided not to sign a Lease on this parcel of land, which in my research, I believe would make us a UMI/UMO (unleased minerals interest/unleased minerals owner). We decided to take a chance that the well will pay itself fairly quick and if not it's a very small interest. We did receive some other properties in this same well that is under lease, just that the landmen missed this piece, as it was origionally not in the proposed drilling unit, but then the size of the unit was expanded at the last min. which caught just a portion of our tract of land.
Sorry for the delay in sending my response, as I was dealing with a kidney stone.