Gas lease thoughts
WHAT ARE THE LEGAL RAMIFICATIONS OF SIGNING A LEASE? • If I lease my “minerals”, what does that include? Would I be leasing more than just natural gas? Can I lease only my natural gas? Only in certain formations, say excluding Marcellus? • Once I sign a lease, when do the terms of my lease expire? Isn’t a 5-year lease that can automatically extended by the gas company, really a ten-year lease? • If the gas company chooses not to produce the gas in this well for market reasons, or any other, will that automatically extend the term of the lease? • Does the lease specify which layer or formation, or does it give access to all underground layers? • Can the gas company drill wells into each of the geologic formations beneath my property? • Don’t the terms of the lease mean that the lease can be held in perpetuity, so long as any company leasing any one of the layers is searching for or producing gas, or storing it on my property?
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