Friday, July 13, 2007

To sign or not to sign?

That is the question...
Here is a local gas rig, not too darn far from our home. We've learned that our whole neighborhood is a prime location for a gas pocket/well. This company is drilling oil and gas wells all over Texas apparently and so far they check out OK. (we hope) We have a chance to sign a 5 year lease for them to do drilling (offsite of course) and anything that they hit and produce we'll get a mere 20% paid to us. The thing is, this is split amongst some 1500+ other neighbors around us. Is it worth it? Do we give in so they can start? I feel pressured to tell the truth, but how else could we ever use our own mineral rights otherwise? Simple homeowners such as ourselves simply don't have the funds to do so or even remotely think about it. Worst case senario? We get blown off of the face of the planet. Simple, boom, gone!
I dunno, need more facts, figures and suggestions.
In the meantime, we wait for a response from
the company for more information. Oh yeah, we also are due a sizeable bonus check upon signing the lease too. It almost seems too good to be true, that's what I'm most afraid of...


Blondie ~ Vintage Primitives said...

No clue as to how to answer this except to pray for wisdom.
How are the others leaning - are they split? Do you have any representation for this company? Serious stuff.

Countryfolk Keepsakes said...

Wow Greenie! That is a tough one. I guess my first question would be how is their track record? How many (if any) explosions took place under their watch?
I'm sure the bonus is legit. If you're sittin' on a gold mine, its worth it for them to pay.
I agree with Blondie,pray for the wisdom. Keep us posted.