As I continue to educate myself on this site, questions come to mind. What is stopping a driller from a nearby site from drilling into my shale without a lease. Also, how close can they frack near my property to "steal" gas and oil?
NEWFIELD- what is to stop him---is the liability, he will be sued and have to pay out 100%.
+ to a 100% royalty.
his legal risk mgmt department won't let him!
The more challenging piece seems to be the "reach" of the frack to draw out a landowners g&o. Depending on the size of the parcel, and I see folks on here with 20 acre parcels, it seems to me they would loose a substantial portion of their in-ground assets through what I guess I will call deep underground leaching and so, if you own your rights but have nearby production facilities, you will most definitely loose out. On a related note, I believe the burden of proof falls onto the landowner to ensure they have not been drilled under. Your thoughts?
The previous owner of my property refused to sign a lease. When I bought the property I also got the mineral rights. When I moved in I called/emailed numerous times asking if I could sign and got no response. Now they're drilling near me and I'm also thinking whats to stop them from stealing whats mine? And how do I know if they are under my property or not? I would rather just sign, but it seems as though I don't really have that option.
Where is your property located ?
Allegheny county PA
PA was a right of capture state. Which means company could frac up to your property line and draw the gas from under your property.
I'm not sure if that still holds true.
However, this should not compel you to sign a bad lease. Because, depending on the size of your property the company could not capture all of the oil/gas under the property. It would be in the company's interest to sign a lease with you to be able to develop the full potential of the property.
So make your best deal.