The Michigan State University Extension is sponsoring an informational meeting on Monday, Nov. 26 to educate landowners who may be offered land leases for oil and natural gas exploration.
Recently, a number of companies have begun contacting landowners in many areas of the state in efforts to lease land for oil and gas exploration, according to the MSU Extension.
Auction proceeds from public lands go to the Michigan Natural Resources Trust Fund (NRTF), which is used to purchase and develop land for recreational use. Some proceeds may also be used for park maintenance under the state’s Parks Endowment Fund, as well as upkeep of the state’s fishery and wildlife habitat.
While the state routinely auctions oil and gas lease rights it holds on public land each spring and fall, there has been increased interest from companies in oil and gas rights leased from private landowners in Oakland County, according to the MSU Extension.
Lease bonuses from $25 to $200 per acre are being offered, providing a potential new source of income to landowners. The lease is a legal contract that can last for generations.
The MSU Extension’s informational meeting will be held from 6 to 9 p.m. on Monday at the Oakland County Executive Office Building Conference Center, 2100 Pontiac Lake Road, Building 41W, in Waterford Township.
The meeting will focus on educating landowners on:
• Regulation of the Michigan oil and gas industry;
• Advances in drilling technology;
• Understanding and negotiating the standard oil and gas lease; and
• Legal considerations in oil and gas leasing.
“When you sign an oil and gas lease, you have essentially ‘sold’ a part of your property,” the MSU Extension states in a press release. “Negotiating the lease can result in much more income to the landowner over the lifetime of the lease and insure the land is managed for oil and gas production in an acceptable manner … A landowner has one opportunity to obtain a good lease and that is before it is signed.”
The meeting will feature speakers from the MSU Extension, the Michigan Department of Environmental Quality (DEQ), the Michigan oil and gas industry, and an attorney specializing in oil and gas leasing, as well as a question and answer period.
The meeting is open to the public and a registration fee of $10 is required. Registration starts at 5:30 p.m. on Monday, with early registration recommended by Friday, Nov. 23, by contacting the Oakland County MSU Extension Office at 248-858-0887.