Oil and Gas (Fracking) Property Negotiations

In June 2012, the North Carolina General Assembly, passed legislation paving the way for natural gas extraction using a method of horizontal drilling and hydraulic fracturing known as “fracking.”  Fracking injects pressurized water, sand, and a mixture of chemicals into rock formations to create cracks through the rock that release gas.  More than 9,000 acres of land have already been leased in the state.

Gas leases are now a hot topic in North Carolina.  Many natural gas companies are contacting land owners, hoping that the owners will quickly sign leases to allow the companies to drill for gas on the owner’s property.  Many landowners view these leases as an opportunity to make a quick profit.  However, the gas companies pressure the landowners to sign the lease without first consulting an attorney.  Often, these leases contain provisions that the landowner did not fully understand or that the company did not fully explain.

Having an attorney involved can help you get a more favorable outcome with an oil or drilling company.  Keep in mind that the interests of these companies are directly adverse to your interests and that they will take advantage of landowners if they can, which is much easier to do without a lawyer standing up for you.

  Here is a link to a story from WRAL which highlights some of the potential concerns that local governments have with fracking.  An attorney can help you consider the potential danger to your land if fracking is done and weigh your long term interests to consider whether or not you should sign a lease.  There is also the potential liability if anything goes wrong with the fracking.

 

If you have been contacted about leasing your property’s mineral rights, do not sign a lease without first talking with an attorney.  Please contact us at 919-803-1516 to set up an appointment with Anglin Law Firm.

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