Leasing Your Land for Oil and Natural Gas Exploration
We recognize that signing an oil and gas lease is an extremely important decision to you, as a landowner. As such, Huntley & Huntley uses only internally trained land agents to aggregate our land positions, and will not use third-party brokerage services that typically disappear once you execute your lease. Our land agents listen to your concerns, answer your questions in a respectful and educational manner, and are focused on building a strong and positive relationship with you from the very first meeting. These same agents will continue to be your contact from lease execution through the safe and environmental-friendly development of your oil and gas reserves. As a privately held oil and natural gas development partner, our interests and goals are aligned with our leaseholders.
In fact, we are only successful when we achieve maximum production and price on your very valuable resource. Our technology and well-completion expertise, combined with the business goal of achieving maximum value, ensure that leaseholders reap the greatest financial benefit from royalty payments for the life of the well.
While leasing your oil and natural gas interest is our start with you, it truly takes your community to develop Marcellus Shale interests. Many of your neighbors will be making the same decision as you for us to successfully develop our Marcellus drilling plans. We believe in educating the entire community involved in our development. Townhall meetings and interaction with local authorities and civic leaders allow us to understand local needs and plan the right development strategy to mitigate any concerns. Education, transparency, and effective communication with all local stakeholders before, during, and after the drilling process further advance the Huntley difference.
The Lease Structure
An oil and gas lease includes a primary and secondary term. The primary term includes either a one-time lease signing bonus payment or annual payments to the leaseholder prior to the drilling of a well. If a well is not drilled within this primary term, the lease will expire. If a well is drilled and Huntley determines viable amounts of oil and gas exist beneath your property, the well will be completed for production. The lease will then convert to the secondary term and run as long as hydrocarbons are produced from the well.
During the secondary term, if applicable, monthly royalty payments are paid to the property owner as oil and gas are produced from the well. In Pennsylvania, royalty payments will equal or exceed 12.5% of all oil and natural gas produced by the well. Given that some Huntley & Huntley wells have produced marketable quantities of oil and gas for more than 80 years, payments under a lease’s secondary term can be considerable.
We are proud to partner with landowners interested in developing oil and gas from their properties. Our experience demonstrates that the drilling process can be completed in harmony with the environment, even in the most environmentally-sensitive areas. Huntley & Huntley wells can be found throughout greater Pittsburgh, with many located in parks, schools, cemeteries, industrial settings and even on golf courses. Huntley & Huntley even pioneered a successful project on the world class Oakmont Country Club involving the development of a dozen natural gas wells.
The option also exists to sell your oil and gas rights through our privately-owned mineral acquisition company Bow & Arrow Land Company. If you are interested in learning more about the economic benefits of doing so, please Click Here.
We invite you to learn more about our company, our people, and our unique way of doing business.