RACHEL L. ALLEN, ESQ. AND SCOTLAND M. DUNCAN, ESQ.
Over the years, many forms of oil and gas leases have developed. Use of a “standard” form—a generic term descriptive of a general class of instruments rather than any one form2—simplifies negotiations with smaller landowners. Owners of large tracts, including major corporations, however, should not sacrifice value for expedience. As the Marcellus Shale formation continues to develop, oil and gas companies and large landowners may find the standard lease lacking. Far too often the standard form oil and gas lease results in the adoption of terms that may not address material concerns of the landowner-lessor. Thus, the authors urge large industrial landowners and producers to consider modifying the following clauses within the context and confines of their unique business objectives.
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