OIL, GAS LEASING DISCUSSION SET

Recorder of Deeds Gary Kelsey will discuss the upsurge in oil and gas leases and the flurry of activity his office has experienced as guest speaker during the next meeting of the Potter County Board of Commissioners.

The meeting is scheduled for 11 am Thursday at the courthouse.

Kelsey will discuss the influx of title searchers poring over county records and provide pointers for property owners who may be approached about leasing subsurface rights.

Penn State Cooperative Extension Educator Tim Pierson cautions property owners being approached about their subsurface rights to be careful.

"The standard lease rarely protects a landowner," Pierson said. "It's full of legal jargon that protects and benefits the company leasing your property."

In general, Pierson said, a landowner should request separate leases or contracts and payments for: shallow oil and gas; deep oil and gas; minerals; and any rights-of-ways for roads, pipelines or utilities.

Landowners may insist on having the final say on the location of wells, roads, tanks, gates, fences, pipelines, and other aspects of drilling and production.

Annual lease payments are usually negotiable and vary widely from five to hundreds of dollars per acre. The royalty rate for gas is set by the state at one-eighth, or 12.5 percent of the yield value.

Water quality protection is important and usually requires addendums to the standard lease, Pierson said.

"Insist that water wells and developed springs be tested prior to any activities and again after all development and production activity is in place," he advised.