Oil & Gas Leases in Michigan

Many oil and gas producers have their land surveyors out looking for properties to seismically survey in Michigan now that hydraulic fracturing, otherwise known as “fracking,” has become a profitable way to extract natural gas and petroleum products from the ground.  Fracking is a process whereby hundreds of thousands of gallons, and sometimes millions of gallons, of water are injected into a well over time to fracture the rock formations underground.  In some cases, this water is aided with a small amount of chemicals to speed up the breakdown process and gather the oil and gas quicker.  This process allows the natural gas and petroleum products to seep out, which is then collected and transported off the property and refined.

Oil and gas was trapped in underground formations in Michigan a long time ago.  It is only now that the oil and gas companies have found that they can make a profit by fracking the wells to remove it.  To get access to the oil and gas under your property, the oil and gas producers hire land surveyors to go out to areas where a rock formation is known to hold oil and gas.  These surveyors ask the owners of the property for permission to survey the formation under the property to determine whether the property has access to a useful formation.  Typically, the survey is a seismic survey, but other surveys are also common.  The land survey company will have the property owner sign a document allowing it access to complete the survey, and generally, the company requests that the property owner also sign an oil and gas lease for the rights to any oil and gas found under the property at the same time.

If you have been approached by a land survey company, or an oil and gas company, for the purpose of surveying your land to determine whether oil or gas formations exist under the property, you should look for an attorney to help you review the documents, including the lease.  Oil and gas leases are enforceable documents, and you do not want to get stuck with a five or ten year contract that does not consider your best interests.  There are many issues that can arise in the use of an oil and gas lease, including the use of water, damages to the property, and payment, just to name a few.  An attorney can help you understand the lease and assist you in understanding your rights and obligations.

For more information or to speak with us about your oil and gas lease, please contact us in Ann Arbor at 734-665-4441, and in Ypsilanti at 734-483-3626.  To learn more about Pear Sperling Eggan & Daniels, P.C., or any of our attorneys, please visit us athttp://www.psedlaw.com.

Insurance! It’s Not Just For Cars

When named as a defendant in a lawsuit, the natural instinct of most people is to panic or despair. Faced with the possibility of having a judgment entered against them and the equally daunting prospect of dealing with the legal system and having to pay for an attorney even if they win, most people understandably worry about what will happen to them, their family, and their overall well-being. Even a relatively minor civil lawsuit can cost thousands of dollars to defend before a judgment or settlement is even reached. This can be debilitating to many individuals and families, especially with the economy in a continued slump. What many people do not realize is that in many instances, they may already have the means to protect themselves.

Many homeowner’s insurance and renter’s insurance policies have a general liability provision that can provide liability coverage in the event of a personal injury or general tort claim. These policies cover legal costs and liabilities up to a certain level. The coverage will often apply to any tort claim filed against the policy holder, though each policy will have different limitations and exclusions of coverage. If the insurance carrier agrees to provide coverage it can mean the difference between financial stability and financial ruin, saving the insured thousands of dollars.

One of the questions we ask every client who comes to usin these types of situations is whether they have filed a claim with their insurance carrier yet. Often people are not even aware that they may be covered; they simply assume that because their home was not damaged, or because an injury might not have occurred at their home, they are not covered. This is not always the case. At worst, the insurance carrier will review the matter and deny coverage. While that is never the answer you want to hear, it leaves you in no worse position than you were before the claim was submitted. In short, any downside to submitting a claim is minimal, while the potential benefits are considerable. For that reason alone, always remember to check with your insurance carrier if you are sued; the answer may save your family’s financial future.

For more information or to speak with us, please contact us in Ann Arbor at 734-665-4441, or in Ypsilanti at 734-483-3626.  To learn more about Pear Sperling Eggan & Daniels, P.C., or any of our attorneys, please visit us at http://www.psedlaw.com.