Butler County lease's

Shell is making the rounds in Cherry Twp and northern Butler County. I have seen there lease and to me it looks like they are offering $1,500  and 15%. The lease was  boilerplate!  Does anyone have any more details? I know they have an office in Butler now.  Is there any other Drillers that have been active as of late in this area?

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Replies to This Discussion

Permalink Reply by PRESTON D Joswiak on August 15, 2011 at 4:09pm

The Pugh Clause was accepted by Shell. All a Pugh Clause is an out for the landowner if the the Oil Company does not include all  your acreage in the pool  and wants to hold your land without any compensation. I agree the details on Shells Lease could be stronger with reguard to the Pugh Clause but you have to ask yourself how important is this to you.   The Pugh Clause was not that inportant to me personally since I did not have alot of land, but overal for the family it was a factor.

    Hands down the most important Addendum was the Royalities without Deduction. To me that is the meat of the  deal, a close second is the Hold Harmless.  Both of them would have killed the deal! 

Permalink Reply by CATHIE on October 19, 2011 at 7:46pm
could you tell me what your 25 addendums are?
Permalink Reply by PRESTON D Joswiak on October 20, 2011 at 10:53pm
Cathy  I need to get my copy of the lease and I will list  what I have. It won;t be till at least Sunday
Permalink Reply by PRESTON D Joswiak on October 23, 2011 at 10:54am
Cathy  I have my lease and the addendums are.  Hold harmless, Pugh Clause, Royalities without deductions for expense, $15,000 for well on property, Water Testing, DEP Compliance, No Foreign pipelines, No Processing Facility on property, lease covers Oil and Gas only, 500 ft setback, Timber Clause, 5 year Shut-in limit, Audit, Fenced in Wells, Warranty of title, restore premise to pre-drill conditions, and conflict of terms.  I have a total of 25 addendum some not listed above are related to the same subject.
Permalink Reply by CATHIE on October 23, 2011 at 11:09am

MR JOSWIAK

DID YOU SEE A LAWYER FOR THESE ADDENDUMS TO BE ADDED TO THE LEASE ? AND I THANK YOU SO MUCH FOR YOUR HELP

Permalink Reply by PRESTON D Joswiak on October 23, 2011 at 10:53pm

Cathy   I did not see a Lawyer myself, I had copies of other leases that were done by lawyers.  I also did alot of research on the net, you can find in most area's all the lease's are on the net. Now they have none of the  Addendums online nor does the dollar amonts appear.  I just made my shopping list from the collected lease's. 

   I saw most of the completed  landowner groups lease's in our area.  They tend to be long and try to cover everything for everybody.  I guess if you are dealing with a speculator instead of a oil or gas producer you need the extra  pages of print. I have seen good lease's and bad lease's  you have to know what you want and go for it. 

Permalink Reply by PRESTON D Joswiak on July 29, 2011 at 8:18am

Word of oil in the Utica in Eastern Ohio is starting to leak out. Chesapeake made the news on the quarterly earnings report.  Read the July 29 Trib report "Shale Called rich in oil"

 http:// www.tribtoday.com



Permalink Reply by Terry W. on August 7, 2011 at 4:40pm

Anyody have some contact info on Exxon.  I uderstand that they are moving into

northern butler county.  Land Agent name and phone number.

See what is gong on.....right now it is Shell

If Exxon moving in, would be interesting to see what is in the making

 

Permalink Reply by Jon on August 8, 2011 at 9:14am
supposedly they've been talking to the bulter county landowners group. you should talk to them they may already have something.
Permalink Reply by JMS on August 8, 2011 at 11:49pm

How close is that group to signing a lease? 

I heard they were looking for more than $3000 an acre, and 20% royalties. 

So since Shell and Exxon are both interested does that mean this is  likely to be a good drilling area?

Permalink Reply by Jon on August 9, 2011 at 8:18am

They supposedly have an offer for $3250 an acre. They've been talking to several companies. The best thing is to go to the next meeting and see. There's supposed to be a drill site in Portersville. I'm sure they'll drill near us sooner or later.

Permalink Reply by DKinPA on August 9, 2011 at 11:45am

JMS,

 

The Butler County Landowner Group is currently in discussion with Shell, Chevron and Exxon.  As we are a landowner group, the goals are set by the membership and at this point those goals have not been met.  We do believe that as the competition between these 3 picks up those numbers will go up as well.  We have seen this consistantly in other areas and there is no reason to believe it won't happen here, but we have to be patient.

Ask yourself this:  Why did Chevron just acquire Atlas?  Why did Shell just acquire East?  Why did Exxon just acquire Phillips?  All small companies that already have lease holdings in our area......Tax write off?  Probably not.  Vacation property?  Hunting camps?  Maybe, but probably not.  They have tremendous capital and they are developing a plan to lease and produce every available acre they can. 

I believe that the 2D seismic study done in our area a while back yielded excellent results and the Marcellus is about what they expected but the Utica is very good.  By doing 1280 acre units and drilling both the Marcellus and Utica simultaneously on one pad their productivity increases tremendously with a minimal increase in operating costs, making our area outstanding!  In addition the fact that we are a rural area they will face much less opposition and consequently less legal battles.

In order to maximize all of positions it is best to be united in a landowner group and we would love to have you and your neighbors join on and lets negotiate collectively rather than be picked off indivdually!

 

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