0 – 15 Minutes
Doug welcomes KC101 in Tioga County as a new station hat is now broadcasting All Things Marcellus every Saturday and Sunday from 9-10AM. Doug discusses the spirit and intent of the radio show as and begins addressing interesting amendment of oil and gas lease agreements and the trend for more and more amendments, modifications, and extensions of gas and pipeline agreements due to low natural gas prices. Doug discusses how a lease amendment can affect the landowner.
15 – 30 Minutes
Doug breaks down how “amendment” of gas lease is actually an extension of the gas lease. Doug explains major concerns with extending a 2005 gas lease in today’s market, and how the changing market will introduce new considerations into leasing. Doug addresses the importance of identifying a lease amendment or extensions and their impact on existing gas leases. Major key is to understand past and current markets to determine landowners options and understand each landowners specific scenario.
30 – 45 Minutes
Doug discusses how evaluation of existing leases, royalty percentage and royalty calculation language, whether post-production cost deductions are permitted and pipeline language are all critical factors and considerations in weighing amending or extending existing leases through a lease amendment. Understanding current leasing market versus leasing terms of the current expiring lease is critical, but there are many other factors for landowners to consider and evaluate, and proper education is essential in this process.
45 – 60 Minutes
Review of addendum terms to negotiate a new lease. Landowners should not extend old company friendly leases that did not include indemnification, mutual consent on well-site and pipeline location, advanced royalty calculation and percentage language, restoration and on-ground operation issues, well-site fees and pipeline limitations. Landowners must not miss out on opportunities to correct mistakes made in the past.