The Marcellus Shale gas boom has been created in part because of advances in drilling technology. Drillers can now reach the Marcellus Shale, which is 5,000 to 9,000 feet below the surface, and then drill horizontally into the shale up to a mile or more from the well location. Multiple wellheads are drilled at a [...]
The natural gas boom has created a need for many different types of pipelines. All of this gas must be transported from the site of the well, and must go through many stages before it can heat your home or dry your clothes. Generally speaking, gas pipelines can be separated into three major catagories: 1) [...]
Many people, including some lawyers and some of those employed in the oil and gas industry, misunderstand some basic terms and definitions relative to the ownership and leasing of oil and gas. One of the most confusing terms used is “minerals”. Many people might assume that the term “minerals” automatically includes oil and gas. This [...]
Once you sign a lease with an operator, the primary term of the lease will keep the entire leased acreage available for use by the lessee operator. When the operator creates a unit for production, your property must be included in that unit for you to receive royalties from the gas produced and sold. However, [...]
Entering into a gas lease for the Marcellus Gas Rights can be a windfall of profit for the property owner. It is not, however, without its tax pitfalls. The gas lease can be a hidden tax bomb if its ownership is not handled properly through gift and estate planning designed to minimize or even eliminate [...]
Now that Oil and Gas is king in Western Pennsylvania once again, everyone needs to become familiar with the terminology that they may be exposed to if they are approached about an Oil and Gas Leasing situation. First of all, the owner of the oil and gas in place is generally referred to as the [...]
This region has boomed with gas drilling. At the center of this opportunity for gas companies and property owners are property rights and contracts. When approached about a gas lease, here are a few things to remember: 1. There is a difference between natural and methane gas. Natural gas is owned by the property owner [...]
The purchaser of a new home wants to make certain he or she obtains good title to it. Likewise, the company that wants to lease the oil and gas under your land also must make sure that it is obtaining good title to that oil and gas. The drilling company is making a multi-million dollar investment in its drilling project, and good title to the oil and gas is a must. Title considerations in the leasing of oil and gas are similar to title considerations for any interest in real estate.
For more than 100 years, the oil and gas industry has used the oil and gas lease as the primary method of entering into an agreement with a land owner to explore for and produce oil and gas. The oil and gas lease has evolved over the years, and the advent of the Marcellus Shale gas formation development has prompted additional changes and refinements to the lease.
Here are some of the more common provisions in the modern oil and gas lease, and some issues that affect land owners:
The Marcellus Shale has had and will continue to have a profound impact on the economy of our county and our region. While some are concerned about the environmental considerations related to deep gas development, there is no question that the Marcellus Shale will benefit most of us greatly.
This large deposit of natural gas runs from Canada and New York State, through most of Pennsylvania, and into parts of Ohio, West Virginia, Virginia, Kentucky and Tennessee. It typically runs from 5,000 to 9,000 feet below the surface. Washington County happens to sit on top of some of the most valuable gas deposits in the entire Marcellus play.