The natural gas industry in the US is truly booming. Output is increasing exponentially year over year, utilities are increasing their natural gas consumption and decreasing their coal consumption, new fields are being found on a weekly basis, and huge swaths of land across the country (particularly in the western states) are being opened for development. Billions and billions of dollars are flowing into the industry with no end in sight. If you’re looking for a career to enter into and you aren’t sure what you should be doing with your life, think about the natural gas sector. This growth isn’t going to slow down anytime soon, and there’s a sizable amount of money to be made.
You don’t have to tell natural gas exploration companies that the industry is booming. They see it when they visit their fields and they notice it in their ledgers. However, what some of them do need help with is securing gas leases. A gas lease is an agreement that’s made between a natural gas developer and an owner of a piece of land that allows the gas exploration company to extract natural gas from the ground. The owner of the piece of land could be anything from an individual private landowner to the federal government, but the stipulations of the agreement remain relatively the same. The gas lease allows the gas exploration company to extract natural gas for a certain price. That price can be either a flat rate or a percentage of the natural gas that’s extracted. It’s up to the buyer and the seller to figure that out.
If you work for a natural gas exploration company and you’re looking to secure more gas leases and titles but you’re struggling to do so, here are three tips to make the process as simple as possible.
1. Hire Outside Help. If you’re struggling to secure leases and titles for gas exploration, you should strongly consider hiring outside help. This means hiring a company that offers landman services. They’ll research what the price of the land should be, they’ll negotiate the deal with the landowner for you, and they’ll do the necessary research to ensure that the agreement is as positive for your company as it can be. Hiring companies like MAJR Resources to secure gas leases for you is one of the most valuable things a gas exploration company can do.
2. Understand Local Regulations. Second, it’s imperative that you understand local regulations. Different states have unique laws surrounding gas lease acquisition. You need to understand these laws in and out to ensure that your purchase of the lease is correct under the law. This ensures you’re not legally liable and open to legal suits down the road.
3. Move Quickly. Finally, you need to understand the importance of moving quickly on a piece of land. If you find some land that you want to develop, you need to make an offer to the landowner immediately. As we’ve talked about, the natural gas industry is booming. If you don’t move quickly on a piece of land, you can bet that someone else will.