Let’s assume that you purchase a 105 acre farm in Greene County in 2022. You purchase only the surface estate while the seller, Farmer Jones, retains the underlying oil and gas rights. You intend to grow corn and winter...more
9/13/2024
/ Appellate Courts ,
Covenants that Run With the Land ,
Farms ,
Land Owners ,
Leases ,
Mineral Rights ,
Oil & Gas ,
Pipelines ,
Surface Owner ,
Texas ,
Well Drilling
Let’s assume you own 136 acres in Tioga County. In 2011, you signed a new oil and gas lease with ABC Production (the “2011 Lease”). The 2011 Lease had a five-year primary term which expired in October 2016. In 2014, ABC...more
Let’s assume you own 95 acres in Greene County, Pennsylvania. In 2019, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...more
9/26/2023
/ Deductions ,
Land Owners ,
Leases ,
Lessee ,
Lessor ,
Marcellus Shale ,
Mineral Leases ,
Oil & Gas ,
Pipelines ,
Postproduction Costs ,
Processing Fees ,
Product Enhancements ,
Royalties ,
Shale Gas ,
Well Drilling
Many Pennsylvania oil and gas leases have what is commonly known as a “market enhancement” royalty clause (“MEC”). These MEC leases typically prohibit the deduction of any post-production costs that are incurred transforming...more
Let’s assume you own 114 acres in Tioga County Pennsylvania. In 2012, you signed an oil and gas lease with XYZ Drilling. Two years later they drill and complete the MUSKIE #1H Well. The royalty clause in the 2012 lease...more
2/25/2022
/ GMRA ,
Leaseholds ,
Leases ,
Oil & Gas ,
Oil Wells ,
PA Supreme Court ,
Payment-In-Kind ,
Pipelines ,
Postproduction Costs ,
Royalties ,
Well Drilling