0 – 15 Minutes
Learning from mistakes. What factors should landowners be considering in order to avoid entering into bad agreements with energy companies. Explanation of the impact of low natural gas prices on Pennsylvania landowner’s royalty payments. Doug discusses his oil and gas websites and natural gas blogs for landowner information. Why oil and gas right owners must consider low gas prices when evaluating any outstanding gas lease offers, gas lease extension offer or any other natural gas contract. Does it make sense to enter into contracts with gas or pipeline companies when the companies tell the landowners that they do not have money and they are not drilling at this time? Doug addresses the importance of specific legal counsel and advice for each landowner’s individual situation. If you are presented with an offer to extend or modify an existing oil and gas lease, you must fully review your options and not extend terrible agreements for many years or decades into the future. Landowners must stop signing bad legal contracts and must start seizing and maximizing opportunities and second chances.
15 – 30 Minutes
Doug touches on an energy company pipeline right of way easement agreement and the need to get quality legal advice to avoid mistakes. Doug explains how landowners can learn from the mistakes that others have made and how to negotiate better agreements in the future. Doug begs landowners not to repeat mistakes made in the past and how to use the body of knowledge and experience now available to negotiate natural gas right owner friendly contracts. Doug tells the story of a child touching a hot stove and our need to avoid touching that same hot stove in the future. This segment stresses the incredible experience oil and gas companies and their lawyers and landmen bring to the table and why landowners must carefully navigate gas agreements and even the playing field in contract negotiations. A review of recent news articles is extremely valuable to understand energy companies’ recent capex budget cuts and cuts in Marcellus Shale and Utica Shale well drilling programs. Knowing that a gas company has no intention to drill shale gas wells can be a very valuable piece of information when considering entering into a long term gas lease or an extension or modification of an existing lease.
30 – 45 Minutes
Doug implores landowners to not simply agree to extend oil and gas leases beyond their primary term without getting knowledgeable legal advice. This segment explains why budget and drilling cuts may present an excellent opportunity for gas right owners to negotiate strong landowner agreements. Segment breaks down the impact of the combination of low natural gas prices and budget cuts from the landowner’s perspective. Landowners who understand the big picture of development and production plans in a down gas market can use this knowledge to make informed decisions on whether to enter into a gas or pipeline agreement at this time, or possibly to hold off in hopes of better opportunities in the future. It is always an individual and unique decision, but the informed and educated oil, gas and mineral rights’ holder will always make the best decision for their property and their family.
45 – 60 Minutes
Doug stresses why land and gas rights owners should not rely on a company employed landman to educate and represent their interests. Remember, the landman is not paid or employed by you, but they are employed by your adversary in the negotiation process. Landowners must understand that the company landman has a job to do and to represent their client who is a gas or pipeline company. Doug discusses how he has been hired by gas or pipeline company employees and representatives and has also been recommended by energy company employees to represent other employees in private negotiations involving oil and gas issues. As always, the informed and educated landowner will decline offers or enter into the best possible natural gas contract. Doug also explains that gas lease and pipeline addendum terms are not equal. Landowners must focus on the quality of addendum terms and not simply the number of added addendum to the offered agreement. One strong and valuable addendum term will be better than 15 throwaway addendum provisions.