Mineral Leasing in Maryland

Abstract

Just a few years ago, many western Maryland landowners saw an increase in oil and gas leasing as gas companies looked to further develop a vast natural gas field found in the Marcellus Shale. Looking at the issue of leasing minerals for oil and gas development, Maryland has limited court decisions involving the interpretation of leases. Maryland also has limited regulations in place for the oil and gas industry compared to neighboring states, such as Pennsylvania and West Virginia. This could change once the State finishes their review before allowing development of the state’s portion of the Marcellus Shale formation. As will be discussed later, the parties to an oil and gas lease may want to consider drafting the document to remove some uncertainties and not rely on a court eventually deciding in one party’s favor. This article will provide a review of Maryland's limited body of court decisions involving natural gas and oil leasing and how these issues are handled in state's with a more developed body of law.