0 – 15 Minutes
Doug explains how The Clark Law Firm, PC represents landowners and oil and gas right owners across Pennsylvania and clients across the country in lease extension cases and beyond. Doug addresses why he has been hired by gas and pipeline company employees and Landman to represent them on their own personal property and gas right ownership. Why do company representatives and employees hire knowledgeable oil and gas attorney’s to represent them in private affairs? Landowners must recognize that the gas company Landman is out to negotiate the best possible deal in favor of the company they work for, and not you, the landowner. No gas company or pipeline company Landman goes to the landowner’s house and tells them that they are working for the company and they are out to get the best deal for the company and give the landowner the worst terms possible. Even company representatives and Landman know the benefits and will often hire attorney’s to work for them in their own private matters involving gas and pipeline companies, and in gas lease extension.
15 – 30 Minutes
All Things Marcellus zeros in on Tioga County and Southwestern Energy’s offers to extend existing oil and gas leases within north central Pennsylvania. What should landowners be considering when weighing gas lease amendment and lease extension offers? Why natural gas prices and a lack of drilling should be considered when contemplating new leases and gas lease extension agreements. Doug explains some of the several factors that all landowners should consider when offered new leases and lease extensions. Doug provides a hypothetical where the landowner has an existing lease with Pennsylvania’s guaranteed minimum royalty of 12.5% with deductions for post-production costs and how future agreements cannot have worse royalty terms for the landowner. Doug goes through a sample risk benefit analysis when considering new lease offers or extension of existing leases.
30 – 45 Minutes
Doug discusses how landowners must not simply sign Oil and Gas Lease Extensions and Amendments and explains the value of attorney reviews and consultations on proposed gas lease amendments. Doug explains how he works with landowners and clients by reviewing gas lease extensions/amendments/modifications and the original gas lease and offers advice and guidance as to the landowner. Doug explains Pennsylvania’s guaranteed minimum royalty act and how the State sets the lowest possible royalty percentage at 12.5% or 1/8th royalty on gas production. Also, why landowners must be exceptionally careful when considering extending bad gas leases with Pennsylvania’s minimum royalty of 12.5%. Why should landowners commit to a lease extension with only 12.5% royalty when gas companies are not spending money on leases or drilling wells in a very down natural gas price market.
Doug walks listeners through a sample hypothetical lease extension offer of $2,500 one-time payment, with a terrible Pipeline Right-of-Way Agreement that is tied with the gas lease. If the lease expires, so does the extremely company friendly pipeline easement agreement that expires when the gas lease expires. If the landowner accepts a lease extension their bad gas lease, they also extend the terrible pipeline agreement. This is the landowner’s lucky opportunity to escape a bad gas lease and bad pipeline right of way agreement. Great example of a situation where the landowner has a clear choice to not extend their existing Oil and Gas Lease for only a one-time payment of $2,500.
45 – 60 Minutes
Doug discusses the potential benefits to refuse or reject a new gas lease offer or lease extension offer or to modify an active gas lease. Doug further expands on the potential for higher per acre bonus or royalty percentage in future gas leases should the natural gas market recover from their current lows per mcf. Doug dives into another sample evaluation of extended a bad Oil and Gas Lease and Pipeline Agreement. Evaluation of how extended a gas lease may impact an existing pipeline easement agreement. Why landowners should consult with an experience oil and gas lawyer when considering any new gas lease or extension to an expiring oil and gas lease. Sample gas lease and pipeline terms that may be negotiated in future offers and contracts to improve on existing documents. Landowners must watch out for potential future liability for any injury or property damage and future tax liabilities. Do not rely on the company Landman to educate and advise you on how to proceed with any natural gas agreement.
