Information on Signing a Natural Gas Lease

Signing over the rights to your natural gas rights could make you thousands. In 2010, several North Fayette, Pittsburgh residents signed a contract that paid them $3,000 an acre plus 17.5 percent royalties for their natural gas rights, according to the Pittsburgh Post Gazette.

Expert Insight

• West Virginia Surface Owners' Rights Organization (WVSORO) recommends that landowners hire an oil and gas attorney before signing over the rights to their natural gas. Drilling companies usually draft agreements that benefit the drilling company, such as not compensating the owner for damage to the land.

Considerations

• Some states allow natural gas companies to drill a well on one property and and extract gas from neighbors, according to Geology.com. In these cases, it may be better to sign a lease or risk getting nothing. Again, you should contact an attorney to get a better perspective on "unitization" -- the sharing of royalties among neighbors.

Tip

• Look at the time frame of the lease and the standard fee. Whereas $500 an acre may be a good deal for a 3-year term, it may not be for a 10-year lease, according to WVSORO. Also, go over with your attorney any other mineral rights the lessee may gain. The lease should only allow the company the right to natural gas -- not uranium, gold or any other mineral.