Stuck in a lease worth $2 an acre when leases are currently going for thousands per acre? You'll want to read this. The following article appeared today on the Corning Leader's website:
Forksville, Pa. --A few short years after agreeing to lease their land to a natural gas company for $2 an acre, Dave and Karen Beinlich could do little but watch, and wait, as an overnight drilling boom turned fellow Pennsylvania landowners into millionaires.
While other landowners were striking increasingly lucrative deals with energy companies, the northern Pennsylvania couple’s suddenly valuable 117-acre parcel netted them $234 per year. And there wasn’t a thing they could do about it.
The Beinlichs are among thousands of residents living atop the gas-rich Marcellus Shale who signed lowball leases in the years leading up to the boom in Pennsylvania. In those early days a half-decade ago, virtually no layperson had even heard of the rock formation, let alone knew that drillers had found a way to access the huge reservoir of natural gas locked inside it.
An untold number of industry-friendly agreements are now approaching their expiration dates. But landowners who expected to sign new leases — and reap windfalls of thousands of dollars an acre — are facing the reality that energy companies with billion-dollar investments in the Marcellus are not about to let their prime acreage slip away.
As landowners in Ohio and New York prepare for their own round of Marcellus leasing, high-stakes battles are developing in law offices and courtrooms throughout Pennsylvania. Landowners who signed early for pittances are trying to get out of their leases, and gas companies are trying just as hard to keep them shackled to the original terms. In some cases, landowners say they were fraudulently induced into signing by high-pressure sales agents known in the industry as landmen. In others, residents contend that companies failed to abide by the lease or act in good faith.
“There’s just too much money at stake — between a $3 lease and a $7,500 lease — for the operators to walk away from,” said Robert Jones, an attorney in Endicott, N.Y., who represented a group of landowners who sued successfully in federal court to shed their old leases. “They’re desperate to hold on to them like the landowners are desperate to get rid of them.”
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