Recent discoveries of large natural gas deposits in the Southern Tier of the Finger Lakes and into Pennsylvania have now caused major drilling companies to pressure residents into signing leases.
These leases, being sought after by representatives from companies such as Fortuna Energy Inc. and Chesapeake Corp., would allow drillers to utilize local residents' properties to harvest the gas. However, officials from the New York State Attorney General's office have warned residents to be weary of these leases.
While there are environmental concerns with the drilling, many residents expressed consumer worries at a recent meeting with the representatives from the attorney general's office. Many residents who have signed leases, revealed that they received royalty agreements of only 12.5 percent. The state average, on the other hand, is 15 percent.
For more information check out this link to the Ithaca Journal article.
Also some tips for landowners from the Ithaca Journal:
- Consult an attorney
- Ask all necessary questions in order to understand all the terms of the lease
- Get all the promises ad conditions made by the land agents in writing
- Negotiate the best deal you can
- Seek more than one gas company to negotiate the best possible lease
- Team up with neighbors or other interested parties to negotiate a lease as a group
- Obtain copies of the lease you sign on the day you sign it
- The right to cancel is the landowners' for three business days after signing the lease.
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