ADAMS TWP — An oil and gas attorney stressed that property owners need to spell out their intent on oil, gas and mineral interests when selling property.

Lawrence Brudy, an attorney with the firm of Lawrence D. Brudy & Associates in Wexford, spoke Thursday morning at the Butler County Association of Realtors “Fracking” R-Day event at the Twelve Oaks Mansion.

The growing Marcellus Shale natural gas industry is having a major impact on companies Brudy told Realtors. He used his own law firm as an example.

In 2006, Brudy was the only oil and gas attorney at his firm.

Currently, there are 20 such attorneys with another 10 to be hired before this fall. The law firm expects to have 50 attorneys working on oil and gas by next spring.

“It's not going away. We have to deal with it. Ten years ago, we never talked about it. Today, you can't get away from it,” he said.

“Butler County is entirely hot right now. Counties get hot and cold depending on the company in the area,” said Brudy.

“The Route 68 corridor is where a lot of activity is occurring. That's where the shale is the thickest underground.”

When someone leases land, whether it has shallow gas like Marcellus Shale or deeper gas in Utica Shale, the lessee is leasing for all of it, unless it is spelled out in the deed or lease agreement.

Brudy said a new oil, gas and mineral rights addendum agreement of sale is being included with the sales of properties now because of the great interest in the natural gas drilling.

The addendum spells out whether the property seller is waiving gas rights, notifying the potential buyer that gas rights have already been transferred or retaining the oil and gas interests.

Brudy pointed out that most property sellers do not know whether they own the oil and gas rights to their property.

A title search for their rights and legal opinion can cost $3,000 to $4,000 and the seller, the buyer or both can pay for the costs.

“Most buyers want to get everything they can. Some sellers want to hold back (on selling oil and gas interests). That sometimes makes for difficult transactions,” said Brudy.

For those selling property, but keeping the gas rights, there is an implied easement that gives the oil and gas rights holder the ability to come onto the property to extract the gas.

“The seller has the right to come onto the surface of the land and develop it,” said Brudy. “That's pretty serious and the buyer needs to pay attention.”

As for agreeing to terms for a lease with a gas drilling company, Brudy said anything in the lease could be negotiated.

“The more restrictions, the more the payments go down. The less restrictions, the higher they go up,” he said.

“Proceed with caution (on leases). Because if you lease the property today, it will be leased the rest of your life and your children's life.”