the companys will not accept individual leases with landowner friendly language. the real answer lies in state law clearly defining royalty minimum payments. the industry has purchased key committee chairman who block legislation here in Pa. the represenative is from a non gas producing part of the state. CHK had it all figured out and now others mimic their corporate culture. landowners could always stop leasing. lol.
after 100 years of natural resource extraction from timber, coal to o&g, the landowner continues to get the slippery end of the stick from ALL sides. in Pa. we have a liberal rep. from Philadelphia representing the teachers union who has stated that our private property resource is public in his view. the state should own the resources and divvy up the proceeds as it sees fit. left wing extreme communist philosophy is alive and well. on the conservative side landowners get no redress concerning royalty clarification due to industry lobby efforts targeting industry shill politicians. we as landowners cut off our noses to spite our faces when we avoid talking to neighbors and banding together for a group leasing strategy as there are no others out there to represent our interests better than ourselves. wake the hell up people as there are torch wielding bands out there wanting to take our gas in the form of severance taxes, royalty manipulations, OGM purchases or any way possible from all factions.landowners have few friends on our side.
why not have solid law set by our politicians to start with, then litigate if need be. don't forget the arbitration clause which handcuffs us for the beating to follow.
Ageed, but in the mean time......a clause like this could easily stipulate the arbitrator or courtmay determine if the operator was manipulating royalty that the punitive damages plus back pay be made.
i don't see companies exepting this type of lease language broadly. unless a large acreage is offered the company holds advantage. leases will simply be rejected.
That would be good for groups to demand and when it starts gaining popularity it could be standard for good companies to start listing as standard addendum language. Like all good clauses there was starting point inception.