How much land do you have to lease to drill in NY?
How much land do you have to lease to drill in NY?
In New York, the owners of 60 percent of the acreage in the proposed drilling unit must agree to lease their land before the state oil and gas board will consider a driller’s petition for compulsory integration, as it is known there. In Virginia, only 25 percent of the land must be leased.
What happens if landowners Can’t Say No to drilling?
If the board approves the driller’s petition, holdout landowners typically have three choices: contribute to the cost of the well and share profits from the sale of the gas; don’t pay for the well and share the gas profits after a “risk aversion” penalty is subtracted, or receive a state-mandated minimum royalty payment.
What does proration mean in oil and gas drilling?
Proration regulates the volume of oil or gas that may be produced from a completed well, known as an “allow- able.” A “proration unit” is the productive acreage assigned to a well to obtain an allowable and is typically the same size and shape as the well’s drilling unit.10
Do you have to lease land to drill in Virginia?
In Virginia, only 25 percent of the land must be leased. In all states with such laws, drillers must notify all the landowners within the prospective drilling area of their right to participate in a hearing before the oil and gas board, or whatever regulatory agency the state has set up for that purpose.
In New York, the owners of 60 percent of the acreage in the proposed drilling unit must agree to lease their land before the state oil and gas board will consider a driller’s petition for compulsory integration, as it is known there. In Virginia, only 25 percent of the land must be leased.
In Virginia, only 25 percent of the land must be leased. In all states with such laws, drillers must notify all the landowners within the prospective drilling area of their right to participate in a hearing before the oil and gas board, or whatever regulatory agency the state has set up for that purpose.
Who is the best person to lease oil and gas land?
A reputable oil and gas operator is always preferable to dealing with a new or unproven company. Keep in mind that some operators hire contract landmen to lease land on their behalf. You should be able to ask the landman who they are representing. If they won’t say then consider this a warning sign.
How are landowners compensated for oil and gas leases?
In addition to a bonus and royalty, you can be compensated for such things as the location of a well pad on your property, the number of wells on your property, and right-of-ways for pipelines. There are many other questions that a landowner may have about an oil and gas lease and the leasing process.
In addition to a bonus and royalty, you can be compensated for such things as the location of a well pad on your property, the number of wells on your property, and right-of-ways for pipelines. There are many other questions that a landowner may have about an oil and gas lease and the leasing process.
Can a well be drilled without a lease?
You certainly have no obligation to do so and, without a lease, no well could ever be drilled upon your property. It is possible, however, that gas could be drained from under your property if you declined to sign a lease.