The modern oil and gas lease is a sophisticated and complex legal instrument that has evolved over the last several decades. This evolution, however, has generally occurred within the "vertical well" context. Recent technological advances in horizontal drilling and hydraulic fracturing have resulted in unprecedented leasing activity throughout Pennsylvania.
The advent of horizontal drilling has introduced new and unique concepts that the traditional vertical lease was simply not drafted to address. As a result, many landowners and gas operators throughout Pennsylvania have grown frustrated and disillusioned with their vertical leases that inadvertently hinder and delay horizontal drilling and hydrocarbon development.
