Oil and Gas Royalty Owners Meeting at Greenbrier - Beckley, Bluefield & Lewisburg News, Weather, Sports

Controversy surrounding development of oil and gas resources in West Virginia tend to center on industry versus landowner, but those who hold rights to the minerals themselves are often a more quiet but essential piece of the puzzle.

Royalty owners, those who own the rights to develop a resource but choose to lease it to a developer, often have very different concerns than those who own only the surface. While they may encounter similar surface use issues as those who hold only surface rights over gas development, issues of finance and contract are at the forefront.

The National Association of Royalty Owners will be discussing some of these issues at its upcoming Annual Members' Conference at the Greenbrier starting September 24. The three-day conference will feature opportunities to network and speak with those experienced with leasing mineral rights, but it will also feature educational presentations for royalty owners.

Robert Hart, a petroleum engineer and oil and gas consultant and appraiser, is the president of the Appalachian Chapter of NARO.

"People can expect to learn a lot," Hart said of the conference. "We're targeting the mineral owners in several states."

NARO describes itself as "the only national organization representing, solely and without compromise, oil and gas royalty's owner's interest." The group pushes education on signing oil and gas leases on a number of fronts. It also briefs Congress and state legislatures on industry developments.

The local chapter has been around for a few years. It was formed primarily in response to development in the Marcellus shale, a massive shale gas formation recently unlocked by a combination of the combined technologies of horizontal drilling and hydraulic fracturing.

Those looking to lease their property to drillers face a lot of questions. The problem, Hart says, is that there are so many variables that often the answer to most generalized questions is simply "it depends."

"A lot of people say, I wish I had known about (NARO) when they signed their lease," Hart said. "I'll just say this – it really doesn't matter if the person if the person is Ph.D from MIT, a medical doctor, a distinguished attorney, a geologist, engineer or a farmer that only went to the third grade – they all make the same mistakes."

Hart said it's because the oil and gas leases contain a lot of industry slang and phrasing that makes it easy for royalty owners to sign leases they might not completely understand.

Royalty owners often lie in the center of the debate on oil and gas development. If they also own the surface, they want to maintain the rest of their investment; however, more development also increases their royalty opportunity.

"We really are blessed in the U.S. with all of this natural gas and oil," he said. "It's all because of a thing called horizontal drilling. If it wasn't for that we wouldn't be jumping for joy like we are or have the problems we have now, there are a lot of problems. This is an opportunity for this country to wean itself off of foreign oil."

The conference is also featuring continuing education for attorneys and certified public accountants on Monday, the first day of the event.

Those attending the event will also have recreational and entertainment opportunities at the Greenbrier, including a falconry demonstration and meeting Phil Pfister, who is a Chesapeake Energy employee and a former winner of the World's Strongest Man competition.

The cost is $300 for NARO members and $400 for non-members, although a one-year membership is included. Spouses or students can register for $150. Exhibitor space is available for $750.

For more information call 1-877-341-3244 or visit http://www.naro-us.org/