The Marcellus and Utica shale formations are major sources of oil and gas — and companies from all over the country and throughout the world have been coming to Pennsylvania to tap into the natural gas and oil deposits throughout its northern and western regions.
Before they can do that, however, oil and gas producers must enter into agreements with landowners to obtain access to their land — and in those agreements, landowners have been promised and agreed to royalties and bonuses for this access.
Sometimes, though, property owners are not being paid what they agreed to. If you are disputing your royalty payments with the oil or gas company to which you granted rights, contact the oil and gas team at Rosenn, Jenkins & Greenwald LLP to determine what your options are.
Royalty Disputes in Oil and Gas Leases
The payments due to landowners and property owners as a result of an oil or gas lease are called royalties — compensation in exchange for access to land and for the use of the land to obtain oil and gas from the shale deposits. Unfortunately, we have seen numerous landowners who now need assistance either because the lease was not in their favor or the oil company or gas producer has refused to pay or made improper deductions to royalty payments.
Remember, oil and gas leases are prepared by large oil companies with teams of lawyers on their side. Going it alone in a negotiation — or disputing the royalty payment by yourself — is difficult. By working with the Rosenn, Jenkins & Greenwald LLP team, you can rely on our experience and knowledge in disputing underpayments or unfair deductions. For nearly 60 years, our lawyers have helped Pennsylvanians in and out of court.
Although we know some royalty payment disputes may be oversights, many times these are purposeful attempts by the oil and gas companies to keep more money. You deserve timely, accurate payments from the oil and gas company you’ve leased to — and the truth is, an oil and gas lease can be a windfall for you as well as for the oil and gas company. Don’t let their sloppiness or deliberate acts shortchange you.