Drilling for natural gas is huge right now, in my area.
These people want to lease the mineral rights on my land, for a signing bonus of about $1,000. Royalties later, if applicable.
What's the catch? I'm naturally distrustful. I also know that a dry well is a liability, not an asset (plugging wells is expensive, but not as expensive as the fines); so I don't want any part of the risk in this venture. However, it appears that they want to hand me $1,000 for doing nothing.
That sounds too good to be true. There has to be a catch.
I sure could use that $1,000 though. My neighborhood negotiated a group deal, so supposedly this is a better price than I could get on my own.
Anyone have any experience with
leasing mineral rights?