The sound of industry! Once the oil and gas company starts their drilling operation, you can expect a lot of heavy duty vehicles driving around on your land… with a high level of noise that might even happen during the night. They have the right to do this whenever it pleases them… so long as they are leasing your land.
Lose from market shifts. On the flip side, if the market value of oil or gas drops… so does your royalty check. Also, if the market value drops too far down, it might become unprofitable for the oil and gas companies to drill at this time, depending on your location. You might be forced to wait a while before those royalty checks come back to your mailbox.
They thrive on future plans. Oil and gas companies plan their crews many years into the future. It might be a while before they decide to show up on your doorstep. Make sure you can afford to wait a few years before you see some real money coming your way.
Sometimes leasing is a low risk test. Sometimes, if an oil and gas company is unsure of whether there is sufficient reserves of oil and gas below your property, they try to lease it instead. This works out great for them… but you might not see much money yourself. Remember, these companies can afford to wait and gamble a bit here and there. Can you?
Might turn your property into a factory. You might have to stair at oil and gas extraction machinery and structures on your property. See and hear heavy trucks drive through… disturbing the peaceful surroundings.
Sharing is caring? You might have to share your royalties with your neighbors due to state laws. Oil and gas can make its way through sand and soft rock, stretching across multiple properties. The proposed sharing of royalties will be based upon what is known about the geometry of the oil or gas reservoir compared to the geometry of property ownership at the surface. This procedure is known as "unitization." Basically, it means you might have to share the money.