Landowners should wait to sign lease agreements with Cabot
Tuesday, December 18, 2018
As they wait for official production results from exploratory wells drilled by Cabot Oil and Gas, landowners in Ashland, Holmes and Wayne counties are being advised by attorneys to wait before signing any new lease agreements, according to the Farm and Dairy.
Cabot representatives have been seeking signatures from landowners to amend and ratify existing leases, allowing Cabot to perform horizontal fracturing of wells that go beneath the Utica Shale formation, for the past couple of years. The company believes because the leases are currently held with TransCanada, it has the sole right to whatever oil and gas may be extracted.
In exchange for signing, Cabot is offering landowners $25 an acre and 12.5 percent production royalties. However, attorneys say there are many reasons to wait before signing.
Learn more: Farm and Dairy > Cabot is making offers, but landowners advised to wait
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.