MERCER COUNTY GAS LEASE IS PROUD TO OFFER REPRESENTATION TO LANDOWNERS IN MERCER COUNTY AND LAWRENCE COUNTY. THESE LAND PROTECTIONS WERE OFFERED TO OUR CUSTOMERS IN PREVIOUS OFFERS. THESE PROTECTIONS ARE SOME OF THE BEST PROTECTIONS EVER INCLUDED IN A NATURAL GAS LEASE. WE WERE PROUD TO OFFER THESE. AND IF YOU MISSED OUT ON EARLIER OFFERS, WE WOULD BE HAPPY TO REPRESENT YOU AND FIGHT TO GET THESE PROTECTIONS FOR YOU AS WELL.

 

 FOR MORE INFO ON A FAIR LEASE OFFER IN YOUR AREA : CLICK HERE 

 This is a sample of the land protection that customers in Mercer, Lawrence, Mahoning and Columbiana Counties received.

The land protection for you area may be slightly different. However, we will fight to get you the best protection for your land, home, water, animals, and children. (We live here too!)USE OF PROPERTY

Restriction of Surface Activity

No well shall be drilled, pipeline constructed, nor any other surface activity nearer than five hundred

(500) feet of any building, water well, spring or septic system, for-profit campground, for-profit farming

operation, shooting range, or property that is used for an active and established for profit horsebackriding

operation, on the leased premises without the written consent of the Lessor.

Location Approval

Location of any well, access roads, pipelines routes, tank batteries, compressor, or other facilities

shall be approved by Lessor or one of their representatives in writing prior to location thereof. Such

location shall minimize interference with surface use of the land. Location approval shall not be

unreasonably withheld, conditioned, or delayed. Upon receipt of Lessee’s written site-location

approval request, Lessor shall have fourteen (14) days from the date of said correspondence to

approve in writing or to advise Lessee in writing of Lessor’s disapproval of a specific location(s)

associated with Lessee’s site plan and to provide Lessee with an alternate location(s) that is deemed

to be reasonable, economically feasible and at a legal location pursuant to all applicable rules and

regulations. Lessor’s failure to notify Lessee of written approval of said site plan or to provide Lessee

with written objection and an alternate location(s) within fourteen (14) days shall constitute Lessor’s

approval of the proposed site location.

Well Location & Access Road Fee

Upon Lessor’s approval of a well site upon the lease premises, Lessee agrees to pay Lessor a

location fee in the amount of Twenty-Five Thousand Dollars ($25,000.00) for each pad constructed on

the surface of the leased premises and the access road(s) constructed in association therewith for the

purpose of drilling horizontal gas wells. Multiple wells may be drilled from a single drill site pad

located on the surface of the leased premises. In the event Lessee physically and materially disturbs

more than ten (10) acres for any drill site pad, roads, pipeline, or other surface installations, Lessor

shall be compensated at the rate of Three Thousand Dollars and 00/100 ($3,000.00) for each net acre

so disturbed in excess of ten (10) acres.

Surface Restoration Clause:

On completion of any operation, Lessee shall restore the lease premises as nearly to original contours

as reasonably possible, remove all debris, equipment, and personal property which Lessee placed on

the lease premises ,except for equipment needed for the operation of producing wells, which shall be

removed within six (6) months (weather permitting) after a well permanently ceases to produce.

Lessee shall promptly plug any abandoned well pursuant to DEP regulations. If said equipment is not

removed within one (1) year after a well permanently ceases to produce, then upon written notice

from Lessor said equipment shall become the property of Lessor.

No Foreign Pipelines

Without a separate written agreement, pipelines, except for those used to transport oil and/or gas

from the well(s) drilled on leased premises or lands pooled therewith, shall not be constructed on the

leases premises.

Pipeline – Plow Depth

When requested in writing by Lessor prior to the laying of pipeline, Lessee shall bury the pipeline a

minimum depth of 36 inches below ground level, measured from the top of the pipe, where possible.

No Compression on Leased Premises

Other than those necessary for the production and transportation of products produced from the

Leased Premises or lands pooled or unitized therewith, it is agreed and understood that compression

facilities will not be placed on the leased premises, unless written consent is provided by the Lessor.

Lessee agrees that the leased premises described herein will not be used as a central processing

facility. Where compression facilities, temporary or permanent, are used upon the premises, Lessee

shall take all reasonable efforts to minimize the noise associated with the same.

No Regional Ponds or Pits on Leasehold.

It is agreed and understood that regional water ponds or pits associated with Lessee’s operations

and/or which service wells other than wells drilled on the Leasehold or on lands unitized with the

Leasehold will not be placed on the Leasehold unless written consent is provided by the Lessor.

Replace Fences and Gates, Installation of Gates

Lessee shall promptly replace any fences and gates removed by Lessee during its operations on said

land and further, shall construct gates on all access roads on said land upon written request by

Lessor. Gates shall be constructed at Lessee’s sole cost and expense, and shall be gates with a

double locking system. Lessee shall provide keys to such gate locks to Lessor. Gates shall be kept in

good repair by Lessee, and shall be kept closed and locked, to the extent practicable.

Fence Producing Wells

Lessee shall (a) fence all producing wells, tank batteries, pits, separators, drip stations, pump

engines, and other equipment placed on the lease premises, with a fence capable of turning sheep,

goats, and cattle; (b) keep the fences on the lease premises in good repair; and (c) keep all gates and

fences closed at all times, on in lieu of gates, install cattle guards.

Timber Clause

Lessee and Lessor agree that prior to the removal of any marketable timber resulting from Lessee’s

operations under the terms of this lease, Lessee shall provide thirty (30) days written notice to Lessor

providing Lessor an opportunity to arrange for the harvesting of said timber within thirty (30) days of

receipt of said notice. If Lessor does not exercise such right to harvest, an appraisal shall be

constructed by a qualified third party forester and Lessee shall pay Lessor the said appraisal value

prior to harvesting. In the event agreement is not reached as to value each party shall select an

appraiser and the two appraisers shall select a third- party neutral appraiser who shall determine the

value of the timber which will be paid by Lessee to prior to harvesting.

Minimize Soil Erosion

Lessee shall construct or install all well sites, access roads and pipeline rights-of –way in a manner

which would minimize any related soil erosion. Further, any related surface reclamation shall be done

in a manner which restores said land as nearly to original contours as reasonably possible.

WATER

Water Quality

Lessee shall have Lessor’s current water supply sampled and tested prior to spudding of any well

drilled on the leased premises, or drilled on acreage unitized with the leasehold. Should Lessor

experience a material adverse change in the quality or quantity of Lessor’s water supply, during or

immediately after the completion of Lessee’s drilling operations, Lessee shall, within 48 hours of

Lessor’s written request, cause Lessor’s water supply to be sampled and tested by a qualified and

independent third party at Lessee’s expense. Should such a test reflect a material adverse change as

the result of Lessee’s drilling operations (If such test reflects a material adverse change in the

Lessor’s water quality or quantity, then it shall be presumed that the same was caused by the

Lessee’s operations)in that instance, Lessee agrees to provide Lessor with potable water within 48

hours and until such a time as Lessor’s water source quality and quantity has been repaired or

replaced with a source of substantially similar quality, to as close to pre-drilling status quo as

reasonably possible, with all reasonably related costs of repair and maintenance to be paid by

Lessee.

No Water Usage

Lessee is not granted any right whatsoever to use any water, surface or subsurface, within the

leasehold for its operations, including, but not limited to wells, ponds, streams, and creeks, unless

Lessor should give written consent to do so.

PRODUCTION

Commencement of Operations

Commencement of operations shall be defined as Lessee having secured a drilling permit from the

State and further entering upon the herein described premises with equipment necessary for the

preparing of a well pad or commencing other activities necessary for the spudding of a well to be

drilled, subsequently followed by a drilling rig for the spudding of the well to be drilled. Once

commenced, and upon expiration of the primary term of this lease or any extension thereof, said

operations shall not lapse for a period of greater than ninety (90) consecutive days prior to the

completion of the well.

Shut-In

It is understood and agreed that this lease may not be maintained in force for a continuous period of

time longer than thirty-six (36) consecutive months, or sixty (60) cumulative months after the

expirations of the primary term or any extension hereof solely by the provision of the shut-in royalty

clause. The shut-in status of any well shall persist only so long as it is necessary to correct, through

the exercise of good faith and due diligence, the condition giving the rise to the shut-in of the

well.Lessee shall tender an additional payment of Twenty-Five ($25.00) per acre, per shut-in well at

the end of the first year and each year thereafter while the leased premises are shut-in.

Notwithstanding the making of such shut-in well royalty payments, Lessee shall be and remain under

the continuing obligation to use all reasonable efforts to find a market for said gas and to commence

or resume marketing same when a market is available, to reasonably develop the lands then subject

to this Lease, and to drill all such wells on the lands then subject to this Lease as may be reasonably

necessary to protect same from drainage by wells on adjoining or adjacent lands.

Pooled Production Unit Limit

In the event Lessee desires to pool or unitize the leased premises with other lands and there is no

spacing order previously established by a governmental or regulatory body, Lessee shall not have the

right to form a production unit larger than 1,280 acres for any horizontal well, and Lessee shall not

have the right to form a production unit larger than 60 acres for any vertical well. Lessee shall provide

any unitized Lessor with a written unitization plan within thirty (30) days of the recording of the unit

designation.

Pugh Clause

In the event a pooled unit is created which encompasses land located outside the lease premises and

some, but not all, of the Leasehold premises, any drilling completing, testing, deepening operations or

reworking operations on or production from a well located on that pooled unit shall continue this Lease

in full force and effect but only as to that part of the lease premises contained within the pooled unit

and only as to those formations and horizons found from the surface down to the deepest depth

drilled; specifically, this lease shall automatically terminate two (2) years (“Extended Term”) after the

expiration of the primary term or any extension provided herein as to such portions of leased premises

not contained within a pooled unit and those formations and horizons below the deepest depth drilled.

However, Lessee may, at its option, pay the extension payment included in this lease one time, and

one time only, prior to the expiration of the two (2) year Extended Term on the portions of the

Leasehold not included in a production unit or below the deepest depth drilled to continue all of its

rights in and to the Leasehold or surrender such portions of the Leasehold not included in a

production unit or those formations and horizons found below the deepest depth drilled.

 

Five (5) Year Extension of Primary Term

Should this lease be extended by Lessee’s option

pursuant to the extension clause contained herein, the primary term extension shall be for a period of

five (5) years from the date of the expiration of the original primary term. The extension payment

price shall be for three thousand dollars ($3,000.00) per net mineral acre. Annual Payment in Lieu of Free Gas Clause:

In the event any well is drilled upon the Leased Premises or any portion thereof, and the Lessor is the owner of the surface where the well is located, and upon Lessor’s written request, Lessee shall pay annually to Lessor in lieu of free gas a sum equal to One Thousand Dollars ($1,000.00)Existing Wells

Lessee agrees that any existing well on the Leased Premises owned and operated by Lessor shall be

excluded from this Lease.

ROYALTY

Royalties Without Deduction

Royalties for oil, gas, and related hydrocarbons shall be paid without deductions for the costs of

producing, gathering, storing, separating, treating, dehydrating, compressing, transporting, or

otherwise making the oil and/or gas and/or related hydrocarbons produced from the lease premises

ready for sale or use. All oil and/or gas, and/or related hydrocarbons royalty shall be delivered free of

cost into the tank or pipeline (for oil and/or related hydrocarbons) and into the pipeline and into

pipeline (for gas and/or related hydrocarbons) with the exception of Lessor’s prorated share of taxes,

measured by volume, on the oil and/or gas and/or related hydrocarbon royalty. It is understood and

agreed that to the extent Lessee sells oil, gas or related hydrocarbons to an affiliate, the price upon

which royalty shall be based shall be the greater of: a) the price paid by the affiliate; or b) the price

that would have been received from a sale to an unaffiliated third party under a sales arrangement for

like quantity, quality, term and at the same point of sale to the affiliate.

 

MISCELLANEOUS

Compliance Clause

Lessee’s operations on said land shall be in compliance with all applicable federal and state laws and

regulations.

No Storage Rights Clause

Notwithstanding anything herein contained to the contrary, Lessee agrees the herein described

leased premises shall not be used for the purpose of gas storage as defined by the Federal Energy

Regulatory Commission. Any reference to gas storage contained in this lease is hereby deleted. If

Lessor wishes to enter into an agreement regarding gas storage using the leased premises with a

third party, Lessor shall first give Lessee written notice of the identity of the third party, the price or the

consideration for which the third party is prepared to offer, the effective date and closing date of the

transaction and any other information respecting the transaction which Lessee believes would be

material to the exercise of the offering. Lessor does hereby grant Lessee the first option and right to

purchase the gas storage rights by matching and tendering to the Lessor any third party’s offering

within 30 days of receipt of notice from Lessor.

No Disposal or Injection Wells

Lessee agrees that no disposal or injection wells shall be placed upon the leased premises, absent

express written approval from Lessor.

Oil & Gas Only

This lease shall be deemed to cover only oil and gas and associated hydrocarbons/constituents.

Livestock Indemnity

Lessee shall indemnify Lessor for any and all loss or liability resulting from injury or death to any

livestock on the leased premises, which are owned by Lessor, Lessor’s tenant or the surface owner, if

Lessee or its operations are responsible for such injury or death.

Hold Harmless Clause

Lessee shall indemnify and hold Lessor harmless from any and all liability, liens, demands,

judgments, suits, and claims of any kind or character arising out of, in connection with, or relating to

Lessee’s operations (or those holding under the Lessee) under the terms of the Lease, including, but

not limited to environmental issues, claims for injury or death of any persons, or damage, loss or

destruction of any property, real or personal. Lessee further covenants and agrees to defend any

suits brought against Lessor on any claims, and to pay any judgment against Lessor resulting from

any suit or suits arising from Lessee’s operation or operations under the terms of this Lease. Lessor,

if it so elects, shall have the right to participate, at its sole expense, in its defense in any suit or suits in

which it may be a party, without relieving Lessee of the obligation to defend Lessor. Lessor shall be

named as an additional insured on Lessee’s liability insurance policy. Prior to the commencement of

drilling operations, Lessee shall provide to Lessor, a certificate of evidence for liability, workman’s

compensation and disability insurance. The insurance required herein may be met through a

combination of primary, excess, and self insurance. It is the intention of Lessee and Lessor that

Lessee shall not be liable to Lessor in respect of (and the foregoing indemnity shall not cover) any

claim to the extent the same resulted from the gross negligence, willful misconduct or bad faith of the

Lessor.

Venue and Choice of Law

The venue for all actions and proceedings arising from this Lease shall be in the county in which the

real property is located. The law of the state in which the real property is located shall apply.

Ad Valorem Taxes and Clean and Green

Lessee agrees that if any penalty, rollback, or re-capture of tax abatements created or imposed under

any governmental program such as, but not limited to CREP, CRP and Clean and Green that is levied

on Lessor solely as a result of Lessee’s operations on leased premises, Lessee will reimburse Lessor

upon written request and receipt of a copy of the penalty notice. As to future assessment of any ad

valorum taxes, Lessee and Lessor agree to pay their proportionate share of any increase in ad

valorem taxes solely attributable to, or resulting from, the assessment of oil and gas due to production

from the leased premises.

Special Warranty Title

It is understood that Lessor warrants title to said property only with respect that the title is good to the

best of Lessor’s knowledge and Lessee agrees that no claims will be made against Lessor pertaining

to warranty of title.

Audit Clause

Lessee further grants to Lessor the right annually to examine, audit, or inspect books, records, and

accounts of Lessee pertinent to the purpose of verifying the accuracy of the reports and statements

furnished to Lessor, and for checking the amount of payments lawfully due the Lessor under the terms

of this agreement. In exercising this right, Lessor shall give reasonable notice to Lessee of its

intended audit and such audit shall be conducted during normal business hours at the office of

Lessee. Such examination and audit shall be at the sole cost and expense of Lessor, unless the audit

reveals deficiencies or underpayments, at which time Lessee shall pay to Lessor, within thirty (30)

days, for the cost of the audit and immediately reimburse any deficiencies plus interest at the rate of

1.5% per month.

Memorandum of Lease Clause

Lessor and Lessee hereby agree this Lease will be recorded of record by Memorandum and said

Memorandum shall reference this Exhibit “A” and the terms hereof.

Release of Lease

Upon written request by Lessor and after termination, expiration, or surrender of this lease in whole or

in part, Lessee shall provide Lessor with a copy of an appropriate release of lease and cause the

same to be filed of record.

Arbitration Clause

Any questions concerning this Lease or performance there under shall be ascertained and determined

by one neutral arbitrator, to be a licensed attorney with at least ten (10) years experience primarily

with an oil and gas practice, to be selected by the parties hereto. In the event the parties cannot

agree on an arbitrator within twenty (20) days of initiation of a dispute subject to this arbitration clause,

then the parties shall have the American Arbitration Association select a qualified arbitrator consistent

with the requirement above. The award of such arbitrator shall be final and conclusive. Arbitration

proceedings hereunder shall be conducted at the county seat or the county where the Lease is filed,

or in the county where the action occurred which caused the arbitration, or such other place as the

parties to such arbitration shall all mutually agree upon. Each party will share costs of the arbitrator

equally.

 FOR MORE INFO ON A FAIR LEASE THAT PREVENTS FRACK WATER FROM EVER COMING ON YOUR PROPERTY: CONTACT US >>>>>>>>

 

No Regional Ponds or Pits on Leasehold.

It is agreed and understood that regional water ponds or pits associated with Lessee’s operations and/or which service wells other than wells drilled on the Leasehold or on lands unitized with the Leasehold will not be placed on the Leasehold unless written consent is provided by the Lessor.No Disposal or Injection Wells

Lessee agrees that no disposal or injection wells shall be placed upon the leased premises, absent express written approval from Lessor. These conditions are for the existing offer area only. Other areas may vary slightly. However, we fight hard to get you the best land protection we can. It doesn't matter where you live or how small your property is. This is your property and you count. Your water, your land, and your home are very important to us. We insist that you are handled with safe drilling practices in mind.

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DISCLAIMER

This website does not offer any legal advice or real-estate advice. We offer public information and articles on topics related to the oil and gas industry. We encourage our visitors to consult a local attorney to revue legal documents before signing. Any opinions expressed by this website are just opinions and should not be considered legal advise. This website offers information which helps landowners make their own intelligent decisions.

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