Drilling Leases vs. Mortgages

[clarencebunsen]

Rush to Drill for Natural Gas Creates Conflicts With Mortgages

As natural gas drilling has spread across the country, energy industry representatives have sat down at kitchen tables in states like Texas, Pennsylvania and New York to offer homeowners leases that give companies the right to drill on their land.

And over the past 10 years, as natural gas has become increasingly important to the nation’s energy future, Americans have signed more than a million of these leases.

But bankers and real estate executives, especially in New York, are starting to pay closer attention to the fine print and are raising provocative questions, such as: What happens if they lend money for a piece of land that ends up storing the equivalent of an Olympic-size swimming pool filled with toxic wastewater from drilling?

www.nytimes.com/2011/10/20/us/rush-to-drill-for-gas-creates-mortgage-conflicts.html?pagewanted=1&_r=1&nl=todaysheadlines&emc=tha23

[JGRobinson]

The Banks being Owners in part or fully of the property we occupy have a vested interest in ensuring the property is marketable if the current owners debts and mortgages were to go unpaid.

I do support the safe extraction of these resources but if your negotiating with a Billion Dollar entity without Legal and Financial advisement, your crazy. If they need access via your property, you have the upper hand but must exercise due diligence on your own behalf's and our environments.

They cannot force you to sign anything and everything that is unacceptable to you can be terms of the contract or they don't get the lease, its called brokering a deal and you as the landowner have the final say before your signature goes on the dotted line.