After speaking to a well respected independent insurance agent, it was confirmed that if drilling occurs on your property, your homeowners insurance is no longer adequate. You have to have a commercial policy. Currently, the underwriters of several insurance companies are determining whether you need a commercial policy if you have signed a lease (never mind drilling). If that becomes the case, that almost certainly would force the issue of a Clean and Green violation.
The amount of water used to frac the well in the Penn State Extension video was stated to be approximately 800,000 gallons. Let’s put that in perspective. If one checks with Pennsylvania American Water, they can confirm that is much more water than is used from Comfort’s Pond in a day to supply Susquehanna, Lanesboro, Hallstead and Great Bend.
Last but not least, if you signed a lease and got a check, did you set aside the appropriate amount to pay your income tax? It is known that more than a few have not. Will there be a scramble to pay it later or will you see various properties for sale at a discounted price to address the tax liability? Will those be with or without the lease?
It has been reported that the upfront money for these leases is well over $3,000 in Wayne County and royalty percentages as high as 25%. How much did you get?
Oil/gas companies carry thier own insurance policies for drilling opperations. Also most oil/gas leases have an Indemnity/Liability clause.I would like to know what Insurance company would require a commercial policy if i have a well on my property? I will be sure to insure with a Different company.
$3,000.00 per acre?? 25% royalty?? I’m from MISSOURI–SHOW ME
Response to Drill in my field: The $3,000 per acre comment was left under “More Gas Lease Information 3/21/2008 by mistake. Yes it is out there.
Again, the site to view is http://www.nwpoa.info
There is another link on that response as well. It goes to a youtube video which has a couple of guys walking around an operational well and making very direct comments. This is regarding “smell” and noise. Here is the link:
http://www.youtube.com/watch?v=8SzP0nO8EFM
Regarding homeowners insurance, check with your carrier. The agent I spoke with is an independent agent in Susquehanna County who is a partner in this fairly large agency. I am just passing information along. What you or any landowner does with it or chooses not to believe it is your (their) business. For your own protection, just make a call.
Question? Do you actually own real estate in Susquehanna County, or are you a landman trying to justify your position?