Oil, Gas & Mineral Rights

About Oil, Gas & Mineral Rights

The Oil, Gas & Mineral Rights Addendum to the Agreement of Sale (Form OGM) is used to change the terms of the Agreement of Sale with regard to oil, gas and mineral rights.

Oil, Gas & Mineral Rights Resources

Penn State Extension Services – Natural Gas Resource Management Program

• Lists of attorneys and consultants
• “Royalty calculator” for determining royalty payments
• Discussion forums
• Common terms and general information about the Marcellus Shale formation

Penn State regularly provides educational programs in the areas affected by the Marcellus Shale leasing activities.

ExploreShale.org
Penn State Public Broadcasting project explaining many of the basics of horizontal drilling and hydraulic fracturing (fracking)

Penn State Law – Marcellus Shale

• Laws and regulations related to oil & gas drilling
• Related cases and proposed legislation
• General leasing/drilling information
• Resources related to the Marcellus Shale and shale drilling from other states
• Resources specific to Pennsylvania

Pennsylvania Land Trust Association

Resources from PALTA – an organization focused on natural resource conservation. Includes various links and resources regarding oil and gas extraction, as well as easements and other pipeline-related issues.

Pennsylvania Independent Oil & Gas Association (PIOGA)

• Represents independent oil & gas producers in PA
• Comprehensive News section with stories related to all aspects of oil & gas exploration in PA (not just from the industry viewpoint)
• Extensive links section with links to a number of related trade associations, as well as numerous links to state government resources and specialty publications

Landmen.net
Resources for landmen (agents who generally work on behalf of drilling or land acquisition companies to obtain oil/gas/mineral leases from landowners). There are very good sample forms and clauses as well various other resources (login required).

Land Owner and Royalty Owner Resources

• American Royalty Council provides information and advocacy on behalf of oil & gas royalty holders.
• National Association of Royalty Owners (NARO) represents royalty owners and has a Pennsylvania Chapter.
• West Virginia Surface Owners’ Rights Organization (WV SORO) focuses primarily on the rights and responsibilities of those who own the surface rights to the land where the oil/gas/mineral rights have been leased, not the owners of the subsurface or royalty rights. The Guide to Oil and Gas is a comprehensive discussion of many issues. You can also find an overview of mineral rights issues.

State and Local Government Resources

• Pennsylvania Department of Conservation and Natural Resources tracks and regulates proposed and operating oil and gas wells within Pennsylvania. DCNR provides extensive resources relating to the geology of Pennsylvania, geological information on the oil and gas drilling process and various resources for tracking well development across the state.
• Office of Oil & Gas Management – PA Department of Environmental Protection
  • Government resources
  • Educational fact sheets
  • Links to relevant laws and regulations
  • Forms related to the development and operation of oil & gas wells

River Basin Commissions

The most common method for extracting natural gas from the Marcellus Shale formation is to drill through the shale formations and then use large quantities of high-pressure water to fracture the shale and release the gas. This process is often called fracking. Fracking a single well can use a million gallons of water or more.

Both the Susquehanna River Basin Commission and the Delaware River Basin Commission have been addressing the issues of withdrawing, using and properly treating the water necessary to operate these types of well. The websites for both Commissions have sections specifically dedicated to issues relating to Marcellus Shale drilling.

Valuation of Rights

The links below provide some general information and resources to obtain a better understanding of the issues. They also provide ideas on the types of practitioners used for this purpose. NOTE: The inclusion of any individual or company is not an explicit or implied endorsement by the Pennsylvania Association of REALTORS®. Be sure to conduct the appropriate research before employing anyone for this purpose or making a recommendation to a client.

• The International Institute of Minerals Appraisers (IIMA) is a professional organization of appraisers who specialize in mineral appraisals. Qualifications include specialized education, five (5) years of experience in the field and recommendations from at least three other mineral appraisers. AIMA members include appraisers from Pennsylvania, Ohio and West Virginia.
• Pittsburgh Geological Society – consultants and appraisers primarily in Western PA (use “consultants” link for list).