MSC member companies are committed to creating strong working relationships with mineral- and land-owners, as well as the broader communities where we operate, while working toward the shared goal of making positive contributions while addressing local needs.
We would also encourage you to view page 27 of this presentation, which highlights the fact that horizontal drilling not only reduces aboveground land disturbance but also increases natural gas production dramatically, according to the U.S. Energy Information Administration:
Additionally, here is some basic of information about the leasing process:
Natural gas producers begin the process of exploring and producing natural gas by obtaining mineral rights from property owners interested in leasing their land for potential drilling activity. Land professionals, or a “landman,” conduct due diligence and research in county courthouses for information on property records and meet with those owners to develop a lease agreement giving the gas producer the right to produce natural gas and other hydrocarbons from their mineral estate.
The lease typically includes a per-acre signing bonus for a specified number of years and an agreed-to royalty payment to the property owner if a well produces natural gas. A number of market-based factors influence the terms included in each agreement.
Leases also include provisions to allow for the construction of underground gathering lines to transport natural gas from wells to larger transmission pipelines and processing plants. Landowners are compensated for the use of property needed for these pipelines, as well as other facilities and infrastructure that may be needed.
It is important to note that leases are legal and binding documents. The lease or “contract” represents the official written agreement between two parties, usually the gas company and the mineral/gas owner. Like all legal contracts, landowners should consider outside counsel prior to engaging into a lease agreement.
