1. Leasing Process
Once an oil and gas lease is signed, Shenandoah begins the process of confirming legal title to the mineral interest. This title review ensures that ownership is properly documented and verified before any payment is issued.
After ownership is confirmed, and if applicable under the terms of the agreement, Shenandoah issues the agreed-upon upfront bonus payment to the mineral owner.
Following lease execution and payment, our team evaluates the property’s development potential, including geological data, operator activity, and drilling timelines. It is important to understand that entering into a lease does not guarantee that a well will be drilled. Development decisions depend on market conditions, operator plans, and overall project economics.
Through modern horizontal drilling technology, wells can often be drilled from a location that may be up to four miles away, significantly reducing potential surface impact to your property.
Under the lease agreement, mineral owners retain a royalty interest, which is a percentage of the revenue generated if oil and/or natural gas production is established. When production occurs, the lease may remain in effect for the productive life of the well—often 20 years or more. As a royalty owner, you are not responsible for any drilling or operating costsassociated with the well.
