There are numerous factors to consider before and during the leasing process. The main consideration is to discover who will ultimately be drilling for and producing your minerals, regardless of which company offers to lease your rights.
Typically, lease brokers are individuals who work independently or for a lease acquisition company (lease brokerage firm) on behalf of certain operators. Their job is to acquire mineral leases in a specific geographic area for an exploration and production (E&P) company to develop.
Remember, the operating company is the one that will actually drill and produce your minerals. This could, but not necessarily, be the same company that offers to lease your mineral rights.
Also consider the reputation and stability of the leasing company, the volume of leases it has generated in this market and the company’s relationship to the mineral producer. Well-established operating companies with proven track records and drilling success rates will generally produce a better well, which means more royalty income for you.
To learn more about the factors involved when considering the lease of your mineral rights, click here.
Before entering into an agreement, learn as much as you can about the individual and/or business that is offering to lease your minerals1.
Getting started is easy. If you own property in the Niobrara play in Wyoming, you can contact Chesapeake with your property address. (Please include the section, township and range of your property.) A representative will contact you within 48 hours.
1Penn State University Extension service. “Five Important Considerations in Leasing.”