Post on 03-Jan-2016
Marcellus ShaleLeasing
Glenn Cochran
Yes, It Is a Big Deal !!!!!
Individual or Group Leasing
Lease is more specific to your property
Tailor-made to your specific wants or needs
Advantages to Leasing as an Individual
Better overall terms◦ Bonus◦ Royalty Percentages◦ Length of Leases
Offers more flexibility on well locations
Advantages to Group Leasing
Term
◦ Primary Term
◦ Secondary Term
◦ Habendum Clause
Bonus or Delay Rental
Royalty
Pooling or Unitization
◦ Pugh Clause
Parts of the Lease
Shut-In Royalty
Gas Storage
Location of Wells, Roads, Etc
Force Majeure
Renewals
Lease Terms (continued)
Get It in Writing
Have the Document Reviewed by an Attorney
A Few Hundred Dollars Spent May Save You Thousands
Before You Sign Anything
What are the lease terms?
◦ Are There Depth Restrictions?
◦ Primary Term
Are You Receiving Rentals on Time?
◦ Secondary Term (Wells Drilled and Producing)
Are You Receiving Royalty Checks?
◦ Talk With Your Current Lessee to See What They are Doing Regarding the Marcellus
If Your Land is Under Lease
Major Financial Impact
Solo vs. Group Negotiations
Research
Know What You Want to See in A Lease
Get It In Writing
Review It With Your Attorney
In Summation
Thank You
Question and Answer Session After the Next Presentation
Glenn D CochranP O Box 1399Oil City PA 16301(814) 671-1550gdcconsulting@verizon.net