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