Mineral Rights/land development question

[mrtimstik]

I realize this is not a car topic but there seems to be alot of well versed individuals here that might have some insight they would share on this issue. I own the mineral rights to a number of acres in Colorado near Steamboat Springs and have been approached by a gas/oil corporation to lease the land to them for a period of time to explore for an initial fee and then a small percentage of the take if successful. Does anybody know the ups and downs of this scenario? Sounds interesting but would like to thoroughly investigate this and gather all info before doing anything. Keep in mind I am talking minerial rights only, I do not own the surface. Would I benefit from retaining my own mineral rights lawyer to investigate this proposal? How do I determine if this is a fair offer? I am new to this and when I spoke to the representatives, there were alot of new words used. Thank you very much. Tom

[TXZS]

Tom, you definitely should retain an oil & gas attorney who is licensed to practice in Colorado; laws vary from state to state. Your rights as the mineral owner are very different from the rights of the surface owner! TXZS

[KNAPPY]

I agree, talk to a lawyer first. Since you do not have the surface rights it will be less hassle for you but the land owners will not be happy. Here in Texas the oil companys are a royal pain in the ass. The land owners may pay you more not to lease the mineral rights.

[Charley Lillard]

Get a oil and gas attorney. They know what the going rate is for leases. I had a similar situation a few years ago and the attorney more than paid his way. Good luck..

[PeteLeathersac]

And don't forget to include the fine print....to supply you free Hi-test fuel for life!!! ~ Pete