Lease Information

LEASING PROCESS AND PAPERWORK for Landowners

Our lease information below is provided to help walk you through every step of the lease signing process. We keep it simple so that every landowner has a good understanding of what to expect and what to question.

  1. Landowner enrolls in lease group, and hires legal representation.
  2. Paperwork: you must fill out and return to us your group contract/representation agreement. Please fill out as much information as you have on your property, such as acreage amounts, number of parcels and parcel numbers.
  3. Landowner reviews lease offer. We will provide you with a draft lease to review as this point.
  4. Landowner accepts lease offer.
  5. Paperwork Landowner will have to provide us or the gas company (whomever is generating leases and associated paperwork) with property deeds and tax parcel information, as well as other documents concerning ownership, such as trust and corporate documents.
  6. Signing: all landowners on deed MUST execute a lease, addendum, memorandum, payment order, W-9 tax form, and possibly an authorization form that allows the lawyers/representatives to be paid directly.
  7. Most documents must be signed in front of a public notary.

 

WHAT YOU WILL NEED TO BRING TO A LEASE SIGNING

  1. Photo ID or an acceptable form of identification
  2. Copy of your Deed
  3. Tax Bill
  4. Corporation, Church or Other Company Representative – you must bring a letter authorizing you to sign on their behalf.

 

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Title And Payment Information
After the Lease and other documents are signed, the Lessee (Drilling Company)
will typically have anywhere between 60-120 days to conduct title research and
due diligence. With our lease groups, payment is typically guaranteed so long as
the landowner has clean oil and gas title (in most other circumstances,
payment is not actually guaranteed!).

At the end of this 60, 90, or 120 day period, we typically get contacted about the following problems. Our team works with landowners and the Lessees to try to work out any of these issues that can be worked out.

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Some Common Questions Concerning Post Lease Signings

Q) I haven’t received my check. What’s wrong?

A) It could be a number of things. The lessee may think your title is bad, may have overlooked payment, or  simply needs more time to conduct title research. We communicate with the Lessee to determine what the  problem is. If you do have a title problem, we will request more information from the Lessee to further advise  you as to your options.

Q) I was paid the wrong amount. Why?

A) This is typically because of a partial mineral reservation (you own some, but not all of your oil and gas), or because the title search indicates you own less acreage than you thought you owned. We then communicate  with the Lessee to verify the mineral reservation, or help you through clearing up the acreage discrepancy  should you have a new survey or other evidence that is favorable to your position.

Q) I have water testing, royalty, tax or estate planning questions. Who do I call?

A) Call us. We have a wide variety of contacts in those fields that can help you with those issues.

Here is an excellent link for “interpreting analytical results” from water well testing.  

http://extension.psu.edu/natural-resources/water/marcellus-shale/drinking-water/water-test-interpretation-tool

Q) You are being approached for Seismic Testing or Pipeline Easements.  What does this mean?

A)   Thankfully, the offices of Morascyzk & Polochak are well-versed in the negotiation and legal advisement regarding these complex agreements on behalf of landowners. Seismic testing is a necessary component of the oil and gas industry, as it helps provide informative data for E&P companies to better make choices with regard to well-site placement and other surface installations.  Although it is less invasive than many of the other surface activities that frequently occur within the industry, it should still be viewed as a complex process rife with potential legal issues affecting the surface owner. Even more so than seismic testing, right-of-way easements contain a significant element of surface disruption that must be addressed accordingly via a Surface Use Agreement.  Issues such as set-back provisions, pipeline bury depth, indemnification, and compensation for surface damage present opportunities for landowners to preserve surface protections while maintaining a working partnership with the installing company. If you are being approached for either of these services, please do not hesitate to contact our office at 1-855-PA-SHALE  for assistance. We look forward to continuing to represent landowners through all facets of oil and gas industry development.

For personal assistance, please call 1-855-PA-SHALE  (1-855-727-4253) or 412-564-5695.