Oil and Gas Law

What to do if a developer wants to lease mineral rights

Technological advances in oil exploration, extraction and processing make it more likely that Michigan’s Blue Water area, especially St. Clair County, will once again become of interest to oil and gas companies.

If you or a property owner you know is approached by a leasing agent interested in mineral rights, be aware that Kelly Law Firm has long had expertise in oil and gas law. It is recommended that you don’t sign anything without consulting with a knowledgeable attorney.

It’s further recommended that you keep your cool if a landman, often an independent contractor, dangles a lease. Getting a lease in your favor is all about negotiation.

With the discovery of oil and establishment of North America’s first commercial oil well in Oil Springs, Ontario, in 1858, it wasn’t long before people started poking around in St.Clair County, due west across the St. Clair River on the same latitude. Beginning in the 1950’s, numerous pinnacle reefs in the Brown Niagaran Formation were discovered in St. Clair County that have produced millions of barrels of oil. Recently, many thousands of acres have been leased in St. Clair and Sanilac Counties. Many knowledgeable people anticipate the deep shale formations will be soon tested for gas, oil and condensates.

Among Michigan counties, St. Clair County turned out to be one of the more blessed and has been a leader in oil and natural gas production.

A Michigan State University Extension Service website offers considerable general information about oil and gas exploration in Michigan.http://msue.anr.msu.edu/program/info/oil_and_gas However, if you are approached by someone interested in leasing mineral rights to your property, be advised that no online information is a substitute for competent legal representation. Our Norman D. Beauchamp is recognized as one of the top legal authorities on this subject in the state.

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Norman D. Beauchamp