As a landowner near Sardis, I certainly have interest in the development of our fossil fuels that the new drilling procedures are seeming to provide.
However, Prior to signing any lease with any company, there are a lot of pertinent questions that all of us landowners in Lee Township should be asking to verify that we are going to actually receive what we are expecting.
The contract that I received from Triad had quiet a few areas of concern. From what I can understand, if the language of these contracts are not written with fair consideration for both parties, then we may in fact not get anything at all.
i.e.; Who is for financially responsible for any possible environmental damage or EPA fines?
( Are we indemnified from possible huge governmental agency fines if the drilling
company becomes insolvent? )
Are payments to be in cash, or "like kind" ( natural gas) ?
What about conditions of the land after they are all done? Will it look like a strip mine?
Is there any compensation for pipelines traversing our property? Will they be buried?
Civil liability insurance to cover accidents or other ?
Maximum amount of acreage to be pooled? ( utmost important! )
What if they do not drill anything? Automatic renewal?
What if one of the most aggressive drilling companies in the U.S., Chesapeke moves
into the area or if we are really sitting on "The new Middle-East"
I understand that they are dangling a big carrot in front of us, but we landowners really need to watch each others back and make sure that we are not going to be taken advantage of in the end.
Tags:
Jeff,
In Pa, and I'm sure Ohio too, half of your concerns are covered by state law. The others will/should be covered in your lease.....that is the most important part....Make sure you understand exactly what your lease says before signing anything. Also, remember that the real money is in the royalties(if they hit a good well), not in the upfront lease money. I'd rather take less upfront money and a higher royalty % anyday. If you don't understand your lease spend some money on someone who can explain it to you.
My point was, after reading your circular and rambling thought structure. The "help" many have become equipped with has been less than par to say the least.
If your setting up an estate, you would go to an estate attorney.
Getting divorced, go to a divorce attorney.
Signing up for an oil/gas lease in the NE, my experience is that anyone with a JD has become an oil/gas attorney.
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