EARTH 109
Fundamentals of Shale Energy Development: Geology, Hydraulic Fracturing, and Environmental, Geopolitical and Socio-economic Impacts

Negotiating a Right-of-Way Agreement

Negotiating a Right-of-Way Agreement

Easement agreements are formal legal agreements granting the operator long-term use of the right-of-way. A change in ownership of the property does not alter the easement agreement, especially if the easement agreement or a memorandum of the easement agreement is filed on record. Because easement agreements are legally binding contracts, landowners are encouraged to have the contract reviewed by an attorney who is knowledgeable in oil and gas law and experienced in reviewing right-of-way agreements before entering into any contract. Experienced oil and gas lawyers can also be immensely helpful in the negotiation of the easement agreement.

Basic Negotiation Suggestions

  • Do not feel pressured to sign anything
  • Many points in the contract can be negotiated
  • Everything should be in writing
  • Talk to your neighbors, share information
  • Limit the agreement as possible
  • Talk to an accountant
  • See legal review
Source: Penn State Extension