Can a well owner or owner group put a "no-fracking" or "fracking-allowed" clause into his/her leasing contract?

Views: 199

Reply to This

Replies to This Discussion

A landowner is free to propose any type of restriction they desire in negotiating a lease agreement.  It would be highly unusual for a lessee to agree to lease mineral rights if they could not utilize hydraulic fracturing when completing the well.  There would simply be no reason to drill a well on the lease as it would be unlikely the well could produce enough oil and gas from the Utica Shale to recover the drilling and completion costs much less any other overhead costs.  If the lessee wanted the surface for other purposes, then they could potentially agree to a contract, but this would likely be a more standard contract for merely surface use or rental.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service