From Kandi Roche
Mineral, Gas & Oil Potential Contract Language
Your percentage is to be ? of the gross income from the first dollar, (not the “net income” where you would be responsible for the production company’s expenses). You are not in business with the production company. You are the landlord, leasing them product and/or land.
Be like Richard Dreyfus (when he made ET). Your percentage is to be part of the “gross income from the first dollar” (not the net income where you end up with little or nothing). You have the right as a landlord to read and photograph the meters and track the pipes on your land and/or royalties.
Hire an attorney who works on a “contingency”. He/she doesn’t get paid unless the money is gained for you. Standard basic fees usually are about one-third of what the attorney collects for you.
Currently, you are not being paid because you don’t know the value. Natural gas and coalbed methane gas are molecularly nearly identical, and are sold for the same purposes, heating, etc. Their only difference is natural gas comes from below the coal seam & coalbed methane comes from within the coal seam. Refer to research on internet.
What is the difference between selling any products and selling your mineral, gas, oil extracted from the earth?
You may be vulnerable to accept the first company that comes to you with an offer. There are so many companies to whom you can sell your products, that you do not have to accept the first low bidder. Research the companies on the internet, send a note that you have product of land, mineral, gas, and/or oil royalties to offer for lease.
Contact your “out of state relatives” who have a share in the product. As you learn, include the kids in the learning process. Teach your kids personal integrity in business.
Let family and friends know that when working for these companies that the company may give them an illegal order to perform. Help the unsuspecting employee be aware if they make irresponsible mistakes of “illegally fulfilling the scope of their employment” and/or failing to maintain the personal integrity of their position, that the unsuspecting employee, unfortunately, can be held legally liable!