Many landowners who sign leases with oil and gas companies as the "fracking" boom rolls through Texas, Colorado, Maryland, New York, Ohio, Pennsylvania, and West Virginia think the lease terms pay them well and protect them from damage. Investigative reporters from the New York Times got the leases and read the fine print. They concluded that many of the leases victimize landowners.
"After Scott Ely and his father talked with salesmen from an energy company about signing the lease allowing gas drilling on their land in northeastern Pennsylvania, he said he felt certain it required the company to leave the property as good as new.
So Mr. Ely said he was surprised several years later when the drilling company, Cabot Oil and Gas, informed them that rather than draining and hauling away the toxic drilling sludge stored in large waste ponds on the property, it would leave the waste, cover it with dirt and seed the area with grass. He knew that waste pond liners can leak, seeping contaminated waste. ...
Americans have signed millions of leases allowing companies to drill for oil and natural gas on their land in recent years. But some of these landowners — often in rural areas, and eager for quick payouts — are finding out too late what is, and what is not, in the fine print.
Energy company officials say that standard leases include language that protects landowners. But a review of more than 111,000 leases, addenda and related documents by The New York Times suggests otherwise."
Ian Urbina and Jo Craven McGinty report for the New York Times December 1, 2011.
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