When a gas company wants to use the surface of a Pennsylvania landowner’s property, the company may present a document called a Surface Use Agreement. This agreement may involve a well pad, access road, water line, pipeline, impoundment, above-ground facility, meter station, valve site, staging area, or other surface operation. In many cases, the surface… Read more »
Posts Tagged: Gas Lease
What Pennsylvania Landowners Should Know About Unit Declarations, Unitization, and Pooled Acreage
Many Pennsylvania landowners sign oil and gas leases without fully understanding one of the most important concepts in modern shale development: Unitization and pooled acreage. Years later, the landowner may suddenly receive: At that point, many landowners realize they are unsure: These issues can have enormous financial and legal consequences. What Is Unitization or Pooling?… Read more »
Can a Pennsylvania Oil and Gas Lease Expire? What Landowners Need to Know About “Held by Production” Claims
When a Pennsylvania landowner signs an oil and gas lease, the lease usually includes a primary term and a secondary term. The primary term is the initial period during which the gas company has the right to explore, drill, pool, unitize, or otherwise take action to preserve the lease. The secondary term is the period… Read more »
PA Gas Lease Extension, Ratification or Amendment: What to Do
When a Pennsylvania landowner is contacted by a gas company years after signing an oil and gas lease, the request often comes in the form of a lease extension, ratification, or amendment. These documents are frequently presented as routine or administrative. In many cases, they are anything but. In reality, when a company reaches out… Read more »
Pennsylvania Oil and Gas Lease Addendum: 10 Clauses to Demand
When a Pennsylvania landowner receives an oil and gas lease, the first instinct is often to focus on the bonus payment and royalty percentage. Those numbers matter, but they are only part of the story. In many cases, the most important protections in the entire transaction are found in the lease addendum. The addendum is… Read more »
PUGH Clauses in Pennsylvania Oil & Gas Leases: How to Prevent Companies from Holding Your Entire Property
One of the most important—and most overlooked—provisions in a Pennsylvania oil and gas lease is the PUGH clause. Without it, a gas company can drill a single well on a small portion of your property and use that well to hold your entire acreage under lease indefinitely, even if the vast majority of your land… Read more »
What Pennsylvania Landowners Must Know Before Signing a Natural Gas Lease in 2026
For many Pennsylvania landowners, receiving an offer to lease oil and gas rights can be both exciting and overwhelming. With the continued development of the Marcellus and Utica shale formations, landowners across Pennsylvania are frequently approached by landmen representing natural gas companies seeking to secure drilling rights. While these offers may appear straightforward, the reality… Read more »
Why Many Pennsylvania Landowners Receive Lower Gas Royalty Payments Than Expected
For many Pennsylvania landowners, the first royalty check from a natural gas well is a moment of anticipation. After signing a lease—often years earlier—landowners expect to finally see meaningful financial returns from the development of their property. However, a common experience across the Commonwealth is disappointment. Many landowners find that their royalty payments are significantly… Read more »
Why a Pugh Clause Is Critical in a 5-Year Pennsylvania Oil and Gas Lease with a 5-Year Extension Option
Preventing Partial Unitization from Holding Your Entire Property Without Additional Compensation When a natural gas company presents a lease offering: many landowners focus primarily on bonus dollars and royalty percentages. However, one of the most financially significant protections in that lease is the Pugh clause. Without a properly negotiated Pugh clause, a company can unitize… Read more »
Is an 8% Contingency Fee on an Oil and Gas Lease Bonus Fair to Pennsylvania Landowners?
Pennsylvania landowners negotiating oil and gas leases are increasingly being approached by third-party “landowner representation” groups offering to negotiate leases in exchange for a percentage of the per-acre bonus payment, often 8%. At first glance, this arrangement may sound reasonable, or even attractive. After all, who would not want professional help negotiating against a sophisticated… Read more »
