Gas Leasing

At this time it may seem that the leasing frenzy has reached its peak, and is now beginning to decline. At times it has appeared that the gas leasing boom has bust. However, in the target areas cash bonus and royalty offers have increased dramatically, with competition between gas companies driving up the lease prices. Although many landowners have already entered leases, there are still leasing opportunities for those who have not yet signed, particularly for individuals in the areas where drilling is taking place.

Landowners who are considering a lease offer must make sure that they fully understand the various terms that appear in the lease. Upon first glance an oil and gas lease may look as if it is written in a foreign language, but with professional guidance landowners can understand the significance of the different lease provisions. Of course, the lease that the landman proposes for you to sign has been written to best protect the gas company’s interest. However, with expert help landowners are often able to negotiate more favorable lease terms through the use of addenda added to the industry lease.

Factors that will influence your ability to negotiate a landowner-friendly lease include the amount of acreage being leased, your proximity to drilling activity or gas production and the competition between gas companies for leases in your area. Underlying these factors is the timing of your lease negotiations – over the course of months or even weeks, lease offers can rise and fall.

The importance of taking the time to have your lease reviewed by an experienced professional cannot be overstated. While the lease may include a fixed five-year term, if the gas company drills and subsequently produces gas the lease will be extended for as long as production continues, potentially for many years. The lease that you sign today may continue to impact your children and grandchildren years from now.

At Marshall, Parker & Associates we recognize the need for quality legal counsel in this area of law that is new to Central and North Eastern Pennsylvania. We have assembled a team of professionals to guide our clients through the entire leasing process, from reviewing an oil and gas lease to negotiating the terms that will control the development of your land. Our attorneys have negotiated hundreds of leases. We have the knowledge and expertise to answer your questions and help you in protecting your land and your family’s financial interests.

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