My sister & I sold a 150 acres of land in Texas a number of years back, but we did retain the mineral rights. Diversified Land Management Company wants permission to look for oil or gas and said that if they found any then we would go fom there. Do we give them permission to do this or what?
2007-07-07 12:03:24 · 2 answers · asked by J.J. 1 in Business & Finance ➔ Small Business
This is normal, you could demand an option payment or something, but it shouldn't cost you anything. If they find nothing, you are out nothing. If, however, they find something then you are liable to receive some important money.
2007-07-07 12:32:09 · answer #1 · answered by rlloydevans 4 · 0⤊ 0⤋
You have little to lose - if they want to actually shoot seismic or drill a well on your land you can expect to get compensated immediately for surface damages to the land.
I expect they simply want to do seismic studies in the area. Problem is that if they shoot seismic and find there is no structure on your acreage its value goes to near-zero immediately. But you gotta take that chance.
2007-07-07 21:40:27 · answer #2 · answered by Richard of Fort Bend 5 · 0⤊ 0⤋