The Marcellus Shale is among the most promising natural gas and oil resources in the entire country, and this formation found below the surfaces of Western and Northeast Pennsylvania is quickly creating new opportunities for families all over the State. Several oil and gas companies continue to negotiate for the right to access an individual’s land, and in return, awards compensation to the landowner for the use of this land and for the resources gathered.
Gas royalties refer to funds that are received from the production of gas, free of all costs except for taxes. Gas royalties are also the total cash value paid by a lessee to a lessor. A landowner typically receives an advance or bonus upon the execution of a gas and oil lease. The payment for this right to search for gas and oil can take from one year up to several years.
Of course, landowners must fully understand their situation and the options available to them if they wish to safeguard and maximize their gas royalties. Numerous landowners do not get paid what they are due, as some gas companies make incorrect or improper deductions to their gas royalty payments.
For landowners, signing the lease is only the first of several important steps. Landowners must grasp the potential life-changing wealth that lies ahead, and gas royalty planning involves planning ahead to protect this wealth for both you and your loved ones. I
At Nepa & McGraw, our team of professionals will work with you to fully understand your unique needs and circumstances. We will thoroughly discuss how your gas royalty income can impact the wellbeing of your family, and see how it can affect your estate plan, as well as your financial and retirement goals.
If you wish to look into gas royalty planning, it would be in your best interests to consult with an experienced attorney. Call Nepa & McGraw today at (570) 282-7050 for a free and confidential consultation without obligation.