UNIVERSITY PARK, Pa. -- The prospect of making substantial profits by entering into oil and natural gas leases with energy companies has some Pennsylvania landowners eager to sign on the dotted line. But if they are not careful, they may get more -- or less -- than they bargained for, according to extension experts in Penn State's College of Agricultural Sciences.

To help private landowners understand the process of gas exploration and leasing, Penn State Cooperative Extension will offer a videoconference titled "Natural Gas Leasing for Landowners," which will be held from 7 p.m. to 9:30 p.m. on July 11. The program can be viewed at one of several county offices of Penn State Cooperative Extension around the state.

Since the initial discovery of deep-well natural gas in southern New York in 2000, exploration has moved quickly into Pennsylvania, following subterranean geologic structures thought to contain reservoirs of natural gas. "The 'front' of this activity moved from northcentral Pennsylvania to southwestern Pennsylvania in a flurry of activity by landmen (independent contractors or company employees who secure oil and gas leases), speculators, brokers and energy companies -- all trying to tie-up large blocks of land with a company lease," says Earle Robbins, county extension director in Tioga County. "There are few regions in the state that have not had natural gas leasing and/or exploration take place."

The problem is, landowners unfamiliar with industry terminology or practices are left feeling overwhelmed by the complex legal and financial decisions suddenly thrust upon them. "Without timely and fact-based information, landowners are unlikely to make decisions that maximize their benefits, reduce risk and meet their ownership goals," Robbins says.

Deep-well natural gas exploration poses opportunities for rural economic development and can provide clean-burning fossil fuel to meet future energy demands, according to Ken Balliet, county extension director in Snyder County. "However, gas development can create challenges for the relationship between private landowners and gas-exploration companies," he says.

"Some private properties hold the promise of significant financial gain through gas development, but many others will experience only passing activity or small compensation, if any," Balliet explains. "Some landowners have been approached to permanently sever mineral rights from their property for a few hundred dollars, not realizing what the impact might be to property values and their surface rights. In some cases, landowners have forfeited many of their surface rights dealing with well, road, pipeline placement and so forth."

There are several pitfalls that landowners should avoid when negotiating a natural gas lease. "Price offered by the company is just one consideration," says Tom Murphy, extension educator in Lycoming County. "Lease rates often will be very low in an area when the first offers are made. You never should feel compelled to sign when first approached. Talk with neighbors and others to find out what is being offered.

"Also, know what you're signing in a lease," Murphy says. "Leases typically contain a lot of fine print with unfamiliar terms. Seek legal advice, and remember that it's your land, so if there's gas under it, that belongs to you as well. You need to partner with a company to explore for it, but it should be on terms that favor both parties. The bottom line is, understand everything before you sign anything."

The July 11 videoconference will cover what the gas resource is, how and why landowners are likely to be contacted, how a gas lease works, and what to consider when making decisions about gas leasing. A panel of speakers will represent local energy companies, consultants, geologists and governmental agencies. A question-and-answer period will follow the presentations.

To register or for more information, contact the Penn State Cooperative Extension office in your county. For more information concerning gas and oil leasing, visit the Web at http://www.naturalgaslease.pbwiki.com.

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EDITORS: Contact Earle Robbins at 570-724-9120 or by e-mail at edr1@psu.edu; contact Ken Balliet at 570-837-4252 or by e-mail at klb26@psu.edu; contact Tom Murphy at 570-433-3040 or by e-mail at tbm1@psu.edu.

Chuck Gill 814-863-2713 cdg5@psu.edu