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Monday, June 10, 2013

Signing an Oil & Gas Lease Can Be Life-Changing - For Better or Worse

From the Youngstown Vindicator:
“This isn’t just a casual lease you’re entering into. This is something that’s going to encumber your land for potentially decades, and there are significant dollars involved,” said Benjamin DiGirolamo, a lawyer and certified public accountant with the Hill, Barth & King LLC accounting firm’s Boardman office. 
Before signing any lease or sale agreement, a landowner should take to a knowledgeable oil and gas lawyer an unsigned copy of any agreement proposed by a drilling company to ascertain whether its terms are favorable to the landowner and be prepared to negotiate with the drilling company any desired changes in the contract, DiGirolamo advised. 
Besides financial compensation issues, drilling-pad location and cleanup after drilling are matters the contract can address, he said. 
As soon as possible, the landowner also should get advice from a certified public accountant concerning the tax consequences of any signing bonuses and of future monthly or quarterly royalty income from a producing well, he said. Signing bonuses could be as high as $5,000 an acre, he added.
Read the rest of this very practical article here. 

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