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Like the sign in the picture above, learning the "ins and outs" of the natural gas lease business can be like learning a foreign language. Even more concerning, the decisions that you make regarding this topic can  have far reaching and long-term effects on your family's and property's future. It is important for you to treat your mineral rights as a business. You need to make smart, informed decisions about any leases on your property. Please browse through our information library as a starting point to your education. We would be happy to provide you with guidance throughout the process if you have questions.

You need to consider...

• What have your neighbors done with their property?  Are there one or two companies who have the majority of leases in your area?  This is very important.
• Find out if there are any land groups forming in your area.
• Read the information and links on our site in addition to others.

• Consider the offers by gas companies.
• Review the sample leases and tips on drafting them in our Library.
• Work with an attorney to review the gas company leases given to you or ask the attorney to help you draft your own.
• The gas company's base lease is typically very much in their favor.  Consider adding "addendums" to it in order to provide you extra protection on issues that are important to you.

• The titling of the property leased is very important.
• Identifying the NEEDS and the WANTS in your life.
• Use of lump sum for signing bonus and future royalties

• Learn the difference between taxation of your signing bonus versus the royalties you will receive.
• Look for actions which can reduce your tax liabilities.
• Investing/spending up front bonus
• Think long and hard about who owns your property.  It may be more beneficial for royalties (or portions) to go to others in your family and not you.  Consider re-titling your deed to better distribute potential royalties among family members.
• Consult with a financial professional to determine what you will do with your signing bonus.