Oil and natural gas production is on the rise in the United States, with energy companies rushing to acquire land in order to drill. Leasing ministry land to an oil or natural gas company can be a moneymaker, but leaders should consider the pros and cons before signing on the dotted line.
The first step when negotiating with a developer is to consult legal counsel. An attorney will be able to spell out the conditions of a contract, enabling the ministry to make an educated decision on whether or not to move forward. An attorney also may be able to negotiate changes in the contract to make it more ministry-friendly.
It may be wise to ask about the following issues that often come up in an oil or natural gas agreement:
When large sums of money are involved, it may be tempting to rush into a lease with an oil or natural gas developer. By enlisting the help of an attorney, your ministry can make sure that it’s comfortable with all aspects of an agreement that could have far-reaching implications.
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