Best Practices for Avoiding Common Issues Arising from Hydraulic Fracturing (Fracking) Extraction Agreements

December 20, 2011 Author: Barclay Richard Nicholson

As hydraulic fracturing operations in the Marcellus shale region and other shale formations throughout the country become more and more prevalent, more issues with lease agreements between energy companies and landowners are beginning to arise.

Review the presentation materials from this webinar to learn about some of the special components of these lease agreements, how to avoid common pitfalls and best practices for negotiating the best terms possible for your client. Also learn the basics of hydraulic fracturing, how royalties are calculated, special issues for tax sale properties and much more during this complimentary webinar.

The issues addressed by the panel include:

  • How is gas extracted from shale?
  • The basic lease agreement dissected.
  • Royalties vs. delay payments – why are delay payments a problem for landowners?
  • "Automatic termination" rules and others helping landowners out of delay situations.
  • Clauses limiting industry risks involving delay payments and relevant case law.
  • Net back royalty calculation vs. point of sale royalty calculation – state law issues, recent decisions and future impacts.
  • The Repudiation Doctrine and Accommodation Doctrine.
  • Special issues involving tax sale properties.
  • Best practices for dealing with standard form contracts – attorney review, Pugh Clauses, etc.

Review the presentation materials in the attached PDF