1.) Not obtaining an experienced oil and gas lease lawyer
As a landowner, it is absolutely critical that you obtain an experienced oil and gas lawyer to assist you in negotiating a gas lease, pipelineUnderground or surface tubing or piping that is installed across states, countries and continents to deliver fuel. New pipelines are being built in Pennsylvania and New Jersey to transport natural gas, liquid natural gas, and water to make gas production more economical. right-of-way agreement, or surface use agreement. Since signing an agreement is a life changing event in the landowner’s life, the executed lease may remain in place for the remainder of the landowner’s lifetime and beyond. Any decisions made should be made with the assistance of an experienced attorney. Make sure you ask the lawyer how many oil and gas leases or PipelineUnderground or surface tubing or piping that is installed across states, countries and continents to deliver fuel. New pipelines are being built in Pennsylvania and New Jersey to transport natural gas, liquid natural gas, and water to make gas production more economical. Right-of-way agreements they have negotiated.
The energy companies have highly paid and skilled lawyers working in their favour, which is why this is important to hire an experienced attorney.
2.) Fearing the attorney fees
Many landowners often resist hiring an attorney due to the legal fees that come along with it. This is a common misconception. In most cases, landowners receive a significant bonus check between 45 and 120 days after signing their lease. Attorney fees are typically nominal compared to the bonus money collected by the client.
3.) Failure to understand what is missing in the lease.
Landowners should never sign an oil and gas lease, pipelineUnderground or surface tubing or piping that is installed across states, countries and continents to deliver fuel. New pipelines are being built in Pennsylvania and New Jersey to transport natural gas, liquid natural gas, and water to make gas production more economical. right-of-way agreement or surface use agreement without fully understanding it. More importantly, understanding what is MISSING from the lease. As a landowner, you do not have a second opportunity to negotiate a signed lease. Again, make sure to consult an experienced attorney for assistance.
4.) Failure to explore all potential oil and gas leasing options
Landowners often sign leases with the first gas company that approaches them. It is important for the property owner to remain open and explore all available options when considering leasing their land for Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock.ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is one of the most highly productive types of sedimentary rock whose density provides tight stores forhydrocarbon reserves below. Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is a rock formationA body of earth material with distinctive and characteristic properties. running through about two-thirds of Pennsylvania, and areas of New York and West Virginia. Geologists estimate that there is a large enough natural gas reserve within the shaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. to power the United States for one to eight years. oil and gas rights. Additional energy and natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum. companies can be brought into the equation to negotiate terms. This can lead to higher bonus payments and royaltiesThe amount exploration and production companies pay to the mineral rights owners of a producing well. Pennsylvania state law requires this rate be no less than 12% of the market price per 1000 cubic feet of gas on the day that gas comes out of the ground.
5.) Failure to look beyond the bonus money and royalty percentage.
While it is important to focus on the up front bonus payment and royalty percentage, there are also crucial terms which can affect the landowner in the future. These terms need to be closely looked at. The natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum. companies are aware that landowners will only look at the bottom line and often present leases in favor of the natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum. company. It is important that the landowner recognize this fact and seek guidance from an attorney.
6.) Falling Victim to an Overbearing LandmanAn agent who works for a drilling company or who is contracted by a drilling company or broker. The mission of a landman is to negotiate the lowest possible lease price and most advantageous terms for the gas company. When you are approached by a landman, it is best to seek advice from a lawyer.
Landowners sometimes say they feel uncomfortable and pressured by the actions of landmen pursuing their property. A landowner must never sign an oil and gas lease or pipelineUnderground or surface tubing or piping that is installed across states, countries and continents to deliver fuel. New pipelines are being built in Pennsylvania and New Jersey to transport natural gas, liquid natural gas, and water to make gas production more economical. agreement out of fear, intimidation, or pressure. This is when it also comes in handy to have an experience attorney involved. Hiring an attorney can alleviate stress and make the process smoother for all parties involved.
7.) Signing a lease, pipelineUnderground or surface tubing or piping that is installed across states, countries and continents to deliver fuel. New pipelines are being built in Pennsylvania and New Jersey to transport natural gas, liquid natural gas, and water to make gas production more economical. right-of-way agreement, or surface use agreement without sufficient property protections.
In most cases, the natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum. company is willing to make adjustments in the form of an addendum to meet the landowners requirements to protect their property. Whether this involves water contamination, environmental concerns, fields and forest preservation, or address any specific landowner concerns. These issues can be negotiated by the lawyer.
8.) Believing the landmanAn agent who works for a drilling company or who is contracted by a drilling company or broker. The mission of a landman is to negotiate the lowest possible lease price and most advantageous terms for the gas company. When you are approached by a landman, it is best to seek advice from a lawyer. is their friend and looking out for the landowner’s best interest.
The landmanAn agent who works for a drilling company or who is contracted by a drilling company or broker. The mission of a landman is to negotiate the lowest possible lease price and most advantageous terms for the gas company. When you are approached by a landman, it is best to seek advice from a lawyer. is often an employee of a land service company who is contracted by a natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum. or pipelineUnderground or surface tubing or piping that is installed across states, countries and continents to deliver fuel. New pipelines are being built in Pennsylvania and New Jersey to transport natural gas, liquid natural gas, and water to make gas production more economical. company. Always remember, these landmen are paid to secure oil and gas leases for their employer and don’t always look out for the landowners best interest. The landowner’s decision must be fully informed and be made in their best interest.
9.) Failure to understand royalty calculation language
Landowners often focus solely on the royalty percentage offered and fail to recognize any royalty deductions taken by the gas company. Landowners must fully understand the royalty percentage provision and whether any deductions from natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum. royaltiesThe amount exploration and production companies pay to the mineral rights owners of a producing well. Pennsylvania state law requires this rate be no less than 12% of the market price per 1000 cubic feet of gas on the day that gas comes out of the ground are permitted within the oil and gas lease.
10.) Relying on misinformation
With misinformation surrounding landowners, it is hard for landowners to make accurate decisions based off of false information. It is vital for the Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock.ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is one of the most highly productive types of sedimentary rock whose density provides tight stores forhydrocarbon reserves below. Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is a rock formationA body of earth material with distinctive and characteristic properties. running through about two-thirds of Pennsylvania, and areas of New York and West Virginia. Geologists estimate that there is a large enough natural gas reserve within the shaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. to power the United States for one to eight years. landowner to determine the reliability of the source of the information they receive. Also, consider the motivations of the persons with whom they are communicating with.
