This episode of All Things Marcellus focuses on landowners and oil and gas right holders considering permanently selling their oil, gas and possibly mineral rights to third party purchasers.  Also, Doug discusses why Pennsylvania gas right owners must stop signing bad natural gas leases, pipeline agreements and other company friendly contracts.


Landowners and natural gas right holders signing bad pipeline and gas agreement contracts presented by energy companies lower the bar for all area landowners. Education and information and strong negotiations from the landowner side will result in better contracts for that landowner and other landowners in the area.  Gas and pipeline companies take advantage of the landowners who were not informed and did not have quality representation.  Landowners must understand their rights and not rely on gas and pipeline company employee ease to assist them in the go she need agreements for the landowners property.


Landowners must understand the power they have when they have Pugh Clauses that have depth severance provisions.  Gas right owners must release gas leases that have death severance provisions.  Landowners must request releases or surrendering of acreage that is not held under an existing gas lease where was held under an expiring gas lease.


Even perhaps more importantly, landowners must identify if they have Utica Shell or other deep natural gas for formation rights that are eligible for release from an existing gas lease.  Lessees must identify how deep the natural gas company has drilled and whether they have acreage eligible for release based upon addendum terms in their oil and gas lease.  Deep natural gas rights for the Utica formation and deeper, can be extremely valuable and landowners must take advantage of this asset in the go she Asian leverage for future gas leases.


Owners of natural gas and oil rights must be extremely careful when considering whether to sell their oil and natural gas rights to a third-party. There are too many company friendly offers and companies seeking to buy gas rights from Pennsylvania landowners at below market prices.  If you are considering selling your oil and gas rights, you must make sure that you understand their value and you must negotiate the price you will receive for your oil and gas rights.  You must also negotiate the language contained in the agreement of sale for your gas rights make sure that you are protecting yourselves. Companies typically offer below market value compensation for your Oil and gas rights and then compound the problem for the landowner by offering one sided sales agreements that further take advantage of the uninformed gas right holder.


We must raise the bar of education and information to make sure that Pennsylvania oil and gas right owners are not taken advantage of when they elect the seller natural gas rates forever.  If you are considering selling your oil and natural gas rights in Pennsylvania, you should consider contacting the Clark law firm to discuss your options and to evaluate whether you are considering a fair and appropriate agreement to permanently dispose of your oil and gas rights.