What do you do if someone wants to lease your oil/gas development rights?
That is a question we have been hearing recently. There may be new interest in potential natural gas reserves beneath the watershed that could be accessed via traditional drilling, directional drilling or hydraulic fracturing (a.k.a. “fracking”), which we have been hearing so much about nationally. The companies interested in leasing drilling rights and their representatives (colloquially referred to as “landmen”) often are quite aggressive in their pursuit of lease signatures. Oil or gas exploration and extraction can have a significant impact on the land and our water resources, so careful consideration should be given before signing away your rights.
Folks in the northern half of the lower peninsula have been dealing with this issue for a number of years now, so I called one of our sister organizations, the Tip of the Mitt Watershed Council, for some advice. Here is what they recommend if the landmen come knocking on your door with promises of riches:
1. Get a lawyer experienced in oil and gas leases to review any contract prior to signing. It’s just too easy to sign away your rights and once you do, it is hard to stop the drillers if they start mucking things up. Your county bar association can refer you to qualified attorneys or HRWC can suggest one (call or e-mail Ric).
2. Check out Michigan State University’s information for land owners. Consider going to a landowner meeting. http://msue.anr.msu.edu/program/info/oil_and_gas
3. If your neighbors do start signing leases and drillers start planning for exploration, get your surface and groundwater tested. You want this done professionally in case you need to prove damage later down the road. The Michigan DEQ maintains a list of certified labs at https://www.michigan.gov/deq/0,4561,7-135-3307_4131_4156-36940–,00.html. Tip of the Mitt has some great advice on deciding what to test and when at http://www.watershedcouncil.org/learn/hydraulic-fracturing/baseline-testing/.
Thanks to the staff at Tip of the Mitt for the helpful advice.
If you have been contacted about selling your oil/gas rights, let us know in the comments. We are interested in tracking this issue and it’s spread across the watershed.