New York Natural Gas Leasing Lawyer
What are your rights as a property owner if you discover that you are sitting on top of a natural gas field in New York? Many property owners are surprised to learn that even without the landowner's consent, a gas company may be able to extract gas under the compulsory integration provisions of New York state law. The property owner doesn't even have to sign a lease agreement for the gas company to take advantage of the law.
Experienced New York Natural Gas Lease Law Attorney
If you are a property owner who is sitting on top of a natural gas deposit, don't give up your rights. Jacobowitz & Gubits, LLP, has earned our reputation as tough, knowledgeable legal representatives of property owners in all areas of gas drilling and land lease laws affecting the Marcellus Shale and other regions.
Our lawyers are recognized by energy professionals and property owners for our resources, experience and skill in all areas of natural gas leasing and drilling laws. We have published articles on the topic and are regularly invited to speak at professional legal conferences throughout the region.
What can a New York natural gas lease lawyer do for your bottom line? We invite you to learn more about our experience in the area of natural gas property owner rights and the state compulsory integration laws by reading the following excerpt from a Q and A article written by our partner, Gerald A. Lennon, Esq., head of our natural gas team. Call us toll free at 866-535-4743 or contact us by e-mail to schedule a consultation.
Compulsory Integration Q and A
Q: Can a Gas Company Take Gas From Under My Property Without My Permission?
A: While it may surprise you, under the Compulsory Integration provisions of current New York State Law the answer is a resounding...maybe!
Under current New York State law, a gas company is required to obtain a drilling permit from the Department of Environmental Conservation (NYSDEC) prior to commencement of any drilling activities. The Division of Mineral Resources administers the program. As part of the drilling permit application, the gas company must designate and define the area of land ("Unit") in which it desires to drill. It must not only identify the lands to be included in such Unit, but also its proposed drilling plans (including well and pipeline locations) and the rationale for the size, location and tracts of land to be included in the proposed Unit. Drilling permits are granted for Units of relatively limited sizes based on the believed likelihood of recovery of oil and/or gas resources, the associated geology and the perceived "interconnectedness" of the geology of the lands within the proposed Unit. Natural gas Units vary in size (in other areas of the country) based on a variety of factors, but frequently are in the 500-1000 acre range. It is not currently (publicly) known how wide the size range of Units might be in the Marcellus Shale exploration area. In the event that oil and/or gas is discovered in economically recoverable quantities in a Unit, all of the owners of the oil and/or gas rights in that Unit MUST share in the value of the resources actually recovered.
Q: Don't I Have to Sign a Lease for the Gas Company to Have the Right to Take Gas from My Property?
A: Not necessarily, but the gas companies do prefer to get a signed lease from landowners for any lands they intend to include within a proposed Unit. Gas exploration companies try to get all of the mineral rights owners in a proposed Unit to sign leases before they submit an application for a drilling permit. Obviously, they don't want to find large quantities of recoverable oil and/or gas resources and then have to go "hat in hand" to any property owners whose oil and/or gas interests they have not already leased. It is a misconception, however, that an individual owner of a parcel of land (or the owner of the oil and gas rights if owned separately) within a proposed Unit can refuse to sign a lease and thus block the exploration company from drilling in the proposed Unit. While the exploration company can't force you to actually sign a lease, there is a procedure whereby your lands (oil and gas rights) can be included within an approved drilling Unit without your express permission.
This article is available in its entirety on our resources page, under the heading of Natural Gas Law.
Don't assume anything about natural gas leasing and property owners' rights in New York. Get the facts about leasing agreements before you sign. Contact us to arrange a consultation with an experienced lawyer today. Jacobowitz & Gubits has offices in Walden and Monticello for your convenience. We provide legal advice and representation for clients throughout New York.
