Anyone sign up for the Marcelus Gas? (Penn: mineral rights, leases)

[theo2]

I own some property and would like to know if anyone has been approached by the gas companie's? Also how would you know if you own the mineral right's on your property?

[WestLibertyAve]

The courthouse probably has that information.

[AnneWest]

Originally Posted by theo2

I own some property and would like to know if anyone has been approached by the gas companie's? Also how would you know if you own the mineral right's on your property?

The gas companies usually know exactly where to go and who to approach. If they're contacting you directly, I'd have to say you're it.
That said, get a lawyer.

[UKyank]

1. If they are contacting you concerning the gas itself, you have the mineral rights
2. Consult a lawyer competant in this area of the law before signing anything. Unfortunately since marcellus shale is the in thing around here now, many lawyers in our area are putting themselves out there as being knowledge about such contracts to make some $$ when in actuality they don't have a clue. I have seen quite a few contracts where people are going to be in for some suprises. Automatic renewal when the contract expires unbeknownst to the landowner, lack of pugh clauses etc. Its not all about the signing bonus money you really have to know about the contract as a whole.

[gg]

My family has land and we are under contract with Range Resources. They pay for the rights and then give you a royalty if they develop it. We didn't need an attorney because we are not stupid. Plenty of research exists and attorney's are a waste of money for most everything IMHO.

[Hopes]

My SIL has a contract. She's had it for a few years. The gas company paid her a large payment at signing the contract and she also receives a substantial monthly payment. The drilling isn't even going to happen on her property. The drilling will happen on a neighbor's property. Her property is simply one of a large group of surrounding properties. She has been receiving monthly payments for over 2 years and they haven't started drilling yet. Even if they never get around to drilling, she'll still receive the payments. Not sure if her deal includes a royalty later, but it's a good bet that it does. She didn't use a lawyer. Not sure if her neighbors consulted a lawyer and she used the advice they relayed to her. Oh, I remember one more thing. Her contract includes environmental cleanup and restitution if the water supply gets trashed.

[UKyank]

Originally Posted by h_curtis

My family has land and we are under contract with Range Resources. They pay for the rights and then give you a royalty if they develop it. We didn't need an attorney because we are not stupid. Plenty of research exists and attorney's are a waste of money for most everything IMHO.

Unfortunately thats how people find themselves spending lots of $$ after the fact on attorneys in litigation because they believe they know the law better themselves then the attorney's working for the other side and find themselves under fairly one sided contracts. This is expecially true when it comes to marcellus shale leases as no one in this area has had the experience that other areas of the country have had with all the tricks that can be put in place or ommitted specifically in natural gas contracts that are different from other mineral rights related contracts.
Spending a fairly small amount of money up front on an expert can save oneself lots of money later on.

[Hopes]

Originally Posted by UKyank

This is expecially true when it comes to marcellus shale leases as no one in this area has had the experience that other areas of the country have had with all the tricks that can be put in place or ommitted specifically in natural gas contracts that are different from other mineral rights related contracts.
Spending a fairly small amount of money up front on an expert can save oneself lots of money later on.

You need to read up on your history of Pennsylvania, the state where the world's first oil well was drilled in the 1850s.

Land leases are not new to Pennsylvanians. If they don't know personally, they likely know someone who does.

[UKyank]

Originally Posted by Hopes

You need to read up on your history of Pennsylvania, the state where the world's first oil well was drilled in the 1850s.

Land leases are not new to Pennsylvanians. If they don't know personally, they likely know someone who does.

Land leases in general are not, and while there is indeed some overlap, marcellus shale leases differ in many material ways from a traditional oil lease (or more common in our area coal mineral rights), or even a deep well gas lease.

[gg]

Originally Posted by UKyank

Unfortunately thats how people find themselves spending lots of $$ after the fact on attorneys in litigation because they believe they know the law better themselves then the attorney's working for the other side and find themselves under fairly one sided contracts.

If you are unable to understand simple laws and read a few books, then you should hire an attorney. I have found that I trust myself more than an attorney, so to each their own. The gas industry is pretty competitive. If one gives you a questionable deal, find another one. If you are too lazy to read what it is all about, try and find an attorney that specializes in it. Good luck with that though. Just because someone is an attorney, doesn't mean they know more than some bum in a bar. Many haven't a clue about much and the ones that do are hired by corporate.