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 [...]
The news has been filled with “sub-prime” mortgages and their problems. “Sub-prime” mortgages are loans to borrowers who are not the best qualified people for a loan. They are “risky” because the borrower may not be financially sound or deep in debt evidenced by a lower credit score than generally acceptable. To cover the additional [...]
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.