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What should I consider before signing an oil and gas lease?

If you are ever approached by a representative of a local gas and oil producer in California, you may find yourself wondering if it is a good idea for you to enter into a lease for your property’s mineral rights. Before you sign one, you should consider the ways it can affect your rights, finances and life. 

Research your situation and shale and oil producers so you better understand your options. Here are some factors for you to consider when negotiating your oil and gas lease to increase your chances of a better outcome. 

There are no shortcuts 

You may feel rushed and pressured to make an immediate decision from the other party and because of your financial situation. Stay calm and insist upon having time to look everything over to consider your options. A hasty decision could cause you to enter into a legally-binding agreement that carries little to no benefits for you. 

Get professional help 

Oil and lease contracts and legalese can be very difficult for someone who has little to no legal expertise. Many people find it beneficial for them to work with their attorneys to gain a better understanding of their situations. An attorney can keep you from signing away your rights, and see to it that the final version of your oil and gas lease offers you the best terms, post-construction costs and lease payments, states BWAB.com. 

Most oil and gas producers are willing to make big concessions to landowners for rights to their properties. You should not assume that they will offer you the best terms or maximum profits. Their main interest is to act in a manner that is most beneficial for them. To improve the chances of a good lease offer, you should research your situation and get expert advice on negotiating your oil and gas lease.

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