Though most property owners in Pennsylvania don't own mineral rights for coal -- most of those were sold many years ago to mining companies -- the vast majority still own their underground oil and gas rights. A property title search at the county Recorder of Deeds office usually will provide this information.
Most gas well drilling companies will research ownership issues before contacting property owners about leases. Drillers are required to notify property owners within 1,000 feet of a well before drilling begins, and the wells must first be approved by the state. Signing a lease does not necessarily mean a well will be drilled on your property. Horizontal drilling can originate a mile or more from your home.
Geology, competition and other factors determine signing bonuses and royalty agreements, which can range from $600 an acre with a 14 percent royalty to $6,000 an acre with a 25 percent royalty, according to Charleroi lawyer Kris Vanderman.
If you are contacted by a gas drilling company interested in leasing your property, the state Department of Environmental Resources recommends the following:
Contact a lawyer before you sign anything.
Negotiate lease payments and royalty amounts. Pay particular attention to when the lease expires and what will happen if the well fails to produce or the gas isn't sold.
Include protection for crops, livestock, buildings and personal property. Protect yourself from damages.
Request that the well operator hire a certified lab to test any source of water used for people, animals or crops before drilling begins. If the operator declines, hire one yourself.
Depending on the situation, property owners may be able to negotiate other issues, such as well placement, air quality controls and royalty payments for secondary fuels, such as propane.
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