Investing Oil and Gas Lease Payments and Oil Royalties
Did you know that oil and gas drilling has been active in Western Pennsylvania for over 150 years?
Well production declined slowly since the 1920s but today, a renewed demand for energy and improvements in technology has revitalized oil and gas production in Washington County and other parts of Western Pennsylvania.
In Washington County Pennsylvania, companies now have the technology to access the natural gas and crude oil reserves in what is known as the “Marcellus Shale” deposit. This new technology, which enables companies to drill horizontally and to fracture the shale, has made it more economical for companies to drill wells.
The increased demand for energy combined with the new technology available to drill wells has created tremendous opportunities for the Oil and Gas industry and landowners in Western PA.
Companies now have the capability to drill wells economically and this renewed drilling activity has generated wealth for property owners in Washington County in two ways.
Companies typically drill wells in forests and on farmland. Landowners can receive income from oil and gas lease payments and from oil royalties.
Oil and Gas Lease Payments
When a property owner “agrees” to let a gas company drill on his or her property, the property owner will receive land lease payments. The terms of the lease are negotiated between the property owner and the company.
Oil Royalties
After a well is drilled, the landowner will receive oil royalties which is a percentage of the revenue generated from the extraction of oil or natural gas over the life of the well.
The income generated for a landowner in Pennsylvania in the form of oil and gas lease payments and/or oil royalties can be substantial.
Our goal is to help you manage the income generated from land lease payments and/or royalties and to ensure the continued growth and preservation of your wealth. If you have any questions about how to invest your income from oil and gas lease payments, please feel free to give us a call.
Our office is located near Pittsburgh, Pennsylvania on Washington Road (Rt. 19) in South Strabane Township. We would look forward to meeting you!
W.E. Griffith & Associates, LLC
1150 Washington Road, Suite 200
Washington, PA 15301
Phone 724-228-3440 Fax 724-228-3442
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