Landowner

A mortgage on your gas rights

Here's an interesting issue that I never heard before.  It seems that sometimes. in order to get financing,  some gas companies mortgage your gas rights. Which brings the question of how that will affect you should you decide to sell or get a home loan.

 

http://thetimes-tribune.com/news/gas-drilling/blake-bill-address-ga...

 

If you read the article all the way to the very end, two bankers say it shouldn't be an issue.

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Oil/Gas ProPermalink Reply by NY Shale Gas Now on August 16, 2011 at 11:37am
Misinformation: They're not mortgaging *your* gas rights. They're mortgaging *their* gas rights, as defined by the leases tthat have already been given by the owners. It's a leasehold mortgage. It will only trip up bankers who don't yet know what that is.

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