||Permits a company to sell or transfer a lease to another firm.
||The original lease term is typically for a period of 5 years. This clause grants the company the right to extend the initial term for an additional period, often five more years.
||Delineates setbacks from drilling activity to a dwelling, barn, water wells, roads, or other structures.
||Ordinarily involves natural disasters and other circumstances beyond the control of a party to the lease.
||If given by the company in its lease, the landowner is protected from certain types of liabilities connected with the company’s activities on the affected land.
||A well whose purpose is to receive waste water and other products from oil and gas wells.
||Permits the company to utilize land for underground storage of natural gas, possibly from another property.
||Unless prohibited in the lease, a company may be allowed to deposit drilling waste into pits on the affected property. Companies now rarely use pits for the storage of waste water.
||The company may deduct some of these costs of producing the natural gas before royalties are paid If the lease permits.
||Protects a landowner from the company holding rights over an entire parcel, where only a portion of the parcel is being used for drilling.
||If called for in the lease, requires the company to independently test the landowner’s drinking water supply, and within a specified distance of the well, before, and sometimes after, drilling.
Prepared by Geauga County Planning Commission, January 2012
Note: The foregoing does not constitute or represent legal advice. Please consult with an experienced attorney before entering into a lease on your property.