Oil and gas leasing activity in Ada Township | News
From: Ada Township Online
Ada Township is aware of owners of large properties in the Township receiving proposals to enter into oil and gas exploration and production leases on their properties. This activity is occurring in conjunction with a tremendous increase in exploration activity throughout Michigan and other areas of the Midwest, particularly for natural gas. Much of this activity is the result of the increased use of “enhanced” well drilling using “hydraulic fracturing” techniques, which involve pumping large volumes of water mixed with various chemical additives into the underground geological features under high pressure, to break up underground rock formations and allow oil and gas to be more easily withdrawn.
Property owners who are considering entering into exploration and production leases should be aware that such leases typically permit a significant amount of above-ground site disturbance, including clearing of trees, installation of access roads, drilling of wells and development of facilities appurtenant to wells in active production of oil and gas, including drilling and equipment storage pads, above-ground storage tanks, above-ground utility lines, excavated sedimentation basins and installation of underground piping.
Landowners should seek professional legal assistance in reviewing and negotiating lease terms prior to signing a proposed lease. Signing a lease without having it reviewed by an experienced oil and gas attorney may result in a lease that lacks the environmental protections desired by the landowner and results in less favorable income to the landowner.
As a starting point in gaining an understanding of the many complexities involved in negotiating an acceptable lease, property owners are encouraged to consult resources available from the MSU Extension Service web site, at www.msue.msu.edu/oilandgas.
Property owners should also be aware that under Michigan law, townships have no authority to regulate oil and gas well drilling. Regulatory authority over the drilling, completion and operation of oil and gas wells lies within the Michigan Department of Environmental Quality, Office of Oil, Gas and Minerals.