March 28, 2008
FOR IMMEDIATE RELEASE
Citizens Organizations Warn Landowners to Be Wary of Mineral Conveyances
Consulting an Attorney Advisable to Protect Landowner’s Interests
Melcroft, PA – The Center for Coalfield Justice, Citizens for Pennsylvania’s Future and the Mountain Watershed Association are urging area citizens to be wary of signing agreements or conveyances with companies seeking to buy mineral rights, specifically including the right to drill for natural gas or coalbed methane.
The surge in coalbed methane and natural gas drilling has caused controversy as landowners - including farmers - and watershed advocates are finding themselves dealing with the environmental consequences of increased sedimentation, runoff, and the use of excessive amounts of groundwater. “We are concerned that homeowners are signing agreements without understanding the rights they may be giving up in the process. It seems that the efforts of some limited liability corporations may be centered around a desire to take advantage of the high price gas is currently fetching, and little else,” said Beverly Braverman with the Mountain Watershed Association.
“Some of the compensation packages homeowners are being offered for their mineral rights are six figures,” said Rebekah Weigel, Community Organizer for the Center for Coalfield Justice. “Citizens should consider that one single well producing a significant amount of gas could net six figures for the landowner if the landowner negotiates a good agreement.”
In addition, the agreements being offered by drilling companies and their representatives usually do not include any written limitations on the drilling companies’ right to use the surface to site drilling facilities and access roads, and may allow the drilling company to enter and occupy the surface owner’s property without the surface owner’s approval. “The agreements are written by drilling companies to protect their own interests, often at the surface owner’s expense,” according to John Baillie, a Senior Attorney in Citizens for Pennsylvania’s Future’s Pittsburgh office. “Anyone who is considering selling the drilling rights to his property should first consult with an attorney to make sure his interests are adequately protected and his concerns met in a written agreement. Trying to iron issues out later through litigation is risky and likely to be expensive.”
“The bottom line,” stated Braverman, “is that as a landowner, you probably want to maintain control over the use of your land. By signing an agreement to sell your mineral rights to a third party and allowing them to lease the minerals, you are giving up that control.”
Community members interested in requesting resources or assistance are encouraged to contact the Mountain Watershed Association at (724) 455-4200 or PennFuture at (412) 258-6681.
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