What can landowners do to make sure their lease stays with a US domestic oil and gas company?
We need to make sure our precious domestic American oil and gas isn't owned and controlled by any foreign country, especially those with evidence of hostility towards America.
Generations of American have been violently manipulated by the international organizations which control the supply of oil. America has fallen to #2 while China has risen to #1 in global economics. Americans are suffering from long term financial stress and many little hope for economic and social recovery. Yet, we find we are sitting on the largest, most valuable oil and gas reserves in the world!
Generations of Americans have had to submit by paying a high price when our government decides to fight wars over foreign oil, government pay-offs to terrorists and warlords in exchange for fewer attacks on foreign supply lines,
Oil prices affect every American at the gas pump, at the grocery store, and for all goods and services we use every day.
Recently, huge reserves of domestic oil and gas have been discovered in America!
According to production reports the oil and gas find in the North Eastern United States is larger than anything we've ever seen, including everything in the Middle East!
According to www.gomarcellusshale.com the 2 largest producing wells in the US are currently reported to be located in Monroe County, Ohio and in Harrison County, Ohio.
The potential economic and social benefits of this discovery is America's only hope for survival as a nation. Domestic oil and gas production controlled by Americans will mean businesses and jobs for Americans, stable income for Americans, increased funding for social programs, and a stronger stable nation. We wouldn't need to participate in wars over foreign oil, we could finally bring our troops home, and have good paying jobs for all Americans.
Domestic oil and gas, if managed properly, gives our nation the opportunity to be self-sustaining and finally cut ties with the foreign entities which so easily manipulate us with foreign oil.
It is very alarming to hear that Chesapeake and others intend to sell out to Communist China.
As China negotiates to buy Chesapeake, our government remains oblivious and uninvolved.
No one has stepped up to make sure these desperate deals made by CEO's will not harm American citizens!
What laws and regulations exist which protect American citizens, American natural resources, (oil, gas, water, uranium, etc) and America's vital infrastructure from being purchased, controlled and manipulated by potentially hostile
Another concern is that many landowners were told that the lease was for oil and gas, but the actual lease is for ALL minerals from the surface to the center of the earth. This includes Uranium or Throium or other Radioactive components. If the leases are sold to China, they could inherit the rights to radioactive materials, as well.
What legal action can be taken by landowners to change the current contracts or leases to indicate they do not want their property to fall under control of a foreign nation ?
What can the Governor of Ohio do to protect Ohio residents who sold their mineral rights to Chesapeake and others who may act with wreckless disregard for the landowners and the nations best interest?
Will Gov. Kasich create regulations which prevent foreign countries from manipulating our very own oil and gas supplies against Ohio residents?
What provisions should landowners include in future contracts to prevent the sale or transfer of their lease to a communist controlled country such as China or any organization with hostile intent towards America?
Apparently you felt the need to expand your rant since you have merely duplicated what you posted on the other topic site... and apparently you didn't like the answer that was already posted to your ridiculous postulation:
You have an overactive imagination... there isn't an oil and gas lease on the face of this planet that purports to convey the rights to "minerals" such as uranium to a lessee. Although trace amounts of uranium are present in the cuttings that are circulated to the surface the lessee would have no more rights to extract that mineral than they would to any gold, silver or other precious metals that might appear in the cuttings.
st USA natural gas leases exclude the leasing for 'hard minerals' such as 'thorianite'
I don't know about uranium as it is in rock deposits...so whether that would be considered a 'hard mineral' or soft I don't know...
as far as your questions about what rights China would have...it would be whatever the lease contract states unless it is prohibited by law (natl or local) and then the contract would have to be amended to reflect that most likely (like the force majeure clause is sometimes added after the fact).
so it all depends 771KS on whether it is included in the lease contract clause. So if any on that list of yours above are 'hard minerals' most likely they are not included in the lease...however 'gold' is a soft mineral but the lease usually pertains to what is extracted while extracting the gas and oil.
this is posted at the other discussion in the similar content of this discussion:
Many leasing clauses state this: (and this one is only part of the clause as it is lengthy)
"Lessor hereby leases exclusively to Lessee all the oil, gas and coalbed methane and other minerals (not including coal or hard minerals) produced in conjunction therewith, but not limited to mined out or gob areas of such coal formations or seams....."
(gold is a soft mineral so that would also be in the list of resources...as only hard minerals are exempt in these leases with this clause). There are other minerals that would be in the lease if they are produced in conjunction..don't know who really interprets such...as when they drill for gas/oil they are not necessarily looking for gold..but if they found some that would be under the lease persay if it qualified. Some questions arose in this discussion as to whether radioactive minerals would be considered as also leased... I suppose the determination is whether that they are considered as 'hard' or 'soft'...as the lease only restricts 'hard' minerals and it is a mineral lease. though some may argue that they wouldn't be able to explore for gold persay...as it is supposed to be in relationship to the exploration for gas and oil primarily...but if one did find gold on their land...if that is included in the contract it could be that the lessee would have rights, so it would be in somewhat dispute over such. So clearly there needs to be more definition.
and about hardness of minerals at this link:
Did Chesapeake or landmen deceive landowners by failing to inform them that China had already invested in Chesapeake and planned to purchase the leases?
Undoubtedly Chesapeake and other oil company representatives (landmen) did deceive many a landowner verbally in many facets of the lease contract (i know this personally and by hearing others here discuss)...and yes they should morally disclose...but if the assigns clause was not discussed nor challenged by a written change...then Chesapeake was not obligated by law to disclose if they were intending to sell to a foreign investor (that is what needs to be under law regulation...more disclosure). In real estate property transactions the Seller is obligated to disclose if there are any adverse info about the property such as if a state highway expansion was planned a year later that would involve the enjoyment and saleability of the RE property...it is required by law..but not all will disclose. This is why our governing agencies need to fully get the oil companies on a decent acceptable leasing contract so that the confusion diminishes and the parties involved can do business in decency and honor towards one another and with respect to the community and nation. They went thru these problems in real estate sales when the land rush to buy land started ...it then became more scrutinized and legislated...and of course the contracts became more defined... I am surprised that this has yet to happen with the oil and gas industry.
i want you to know that you have asked good questions...and we all are learning even about what we have leased as many just say 'minerals' but do not fully understand til research is done. They really should define exactly what they are extracting and not leave it up for guessing.
where is the "like" button. Can you believe this insanity?
GOMARCELLUSSHAle rules of conduct:
Treatment of other members and site updates. This site is community, so we expect our members to treat each other cordially and respectfully. In that spirt, there is zero tolerance for attacks on, or harassment of, other site members and any form of cursing/obcentities is prohibited.
Both of you are not appreciated at these discussions with your mockery...it will be reported to the webmaster. I have no idea why you feel that over 13,000 members at this forum would like to read such posts as you both have about the originator of this discussion and fellow members as myself. Pls remove your posts as the Webmaster will most likely seek to remove your memberships if you do not.
Vicki... neither of the comments constitute an "attack" or "harassment", these people are expressing their opinion much the same as you... only they did so in less than a full page posting. Their opinions are no more or less valid than your own. If you don't like to experience free speech then perhaps you are the one that needs to move on. I hear China has a history of stifling free speech, perhaps you should consider relocating.
I'm sure they are big fans of Joseph McCarthy as well. I mean really what has China ever done to the united states. We are the country bombing everyone. Yes, they built up their economy, yes they are getting a stronger military. How dare any other country try to rival the great American Empire. lol
Well, America is a great empire. We are flawed to be sure. You should read some American Civil War novels. As a society we have come a long way in 150 years. There really aren't too many societies that have survived as long as the United States has. We may be in decline... it has happened to all great civilizations. I don't really see many bright spots on our horizon. We have more people wanting to be supported by fewer and fewer people working and paying taxes. Its a recipe for disaster. Printing money to support the idiots that elected to chose to buy a house they couldn't afford, assuming it would increase in value simply by virtue of the appreciation in value versus any equity that the buyer has in the property, idiots that got into adjustable rate mortgages under the assumption that interest rates would only go down, not up and that they would get raises that would cover their increased mortgage payments, have done nothing but punish the fiscally responsible tax payers that did nothing wrong.
What a country!
The exciting news of the discovery and production of oil and natural gas right here in America gave hope for domestic renewal and stability.
For my family, it was evident that we could save our 32 year old transportation business and retain jobs for our dedicated employees simply by converting our diesel and gasoline engines to operate on low-cost, fuel efficient, locally produced American owned natural gas.
We were inspired to donate our equipment and time to research, test, and develop various methods for converting gas and diesel engines to operate on CNG/LNG for use in commerical applications and private sector transportation.
We began investigating resources to energize and encourage support for CNG/LNG engines, and worked to help create local fueling stations and services for end users of American natural gas.
We actively promoted the use of American natural gas at various conventions and cities throughout the country.
We have been working tirelessly with inventors, universities, suppliers, and businesses to test various engine conversions and fuel blends to determine which were most economical and practical.
Like many others, we understand that the availability and ability to use low-cost, domestic natural gas is vital to stablize and strengthen the American economy.
It is no secret that many businesses have been snuffed out because of overwhelming fuel and energy costs.
Outrageous fuel prices have depleated our once thriving business to the point of despair.
Between 2002- 2009 we were the one of the largest employers in our area, providing well-paying jobs which supported hundreds of families. In the past 3 years as fuel prices climbed, we have been forced to sell our equipment assets and cut our fleet of commercial vehicles and our workforce in half...just to pay for foreign fuel!
We spend more on fuel each week than most people make in annual wages.
Foreign oil prices control transportation and production costs of goods, which translates to higher prices for everything for everyone.
The survival of our business, like many others, revolves around lowering our fuel expenses. This includes converting inefficient diesel and gasoline engines to operate on low-cost, domestic CNG/LNG , and securing long term sources of low cost , domestic CNG/LNG, ensuring it is abundantly available for Americans to use.
Domestic oil and gas means
Americans no longer need to subject our lives and economy to manipulation of prices and supply of oil by OPEC !
Whom ever controls the oil and gas, controls America!
How many more times do we need to hear that the American economy is on the brink of collapse?
The media is quite effective in creating diversions which distract our attention while oblivious politicians continue to send financial support to FOREIGN oil producing countries.
Trillions of taxpayer dollars are wasted on foreign aide sent to wealthy countries to buy their cooperation (including China). We provide military protection for oil producing nations, ther pipelines, waterways, ships, railways, and businesses... money, jobs, and people invested in oil producing nations.. overseas.
Retaining Control of Domestic Energy Resources and Supplying Americans with Low-cost, Domestic Oil and Gas means Strength for the American Economy!
With the discovery and development of oil and gas in North Eastern United States,
we and others have an unprecedented opportunity to save the American economy and preserve America by making sure our leaders take action to guarantee that American citizens have unchallenged, first rights to unlimited supplies of low-cost domestic oil and gas.
Our nation can finally get on course for SUSTAINABILITY!
With the enormous saving in fuel costs, and more efficient CNG/LNG engines, we can begin to create more jobs, increase wages and benefits for workers, improve infrastructure, and ultimately reduce costs for transportation of goods, thereby lowering prices on products we use every day.
In conclusion, the past 12 months have seemed like a second Rennissance!
Out of the ashes of the failed government policies, and a very weak economy,
new hope and enthusiasm for energy indendence have sprung across America due to the
discovery and development of domestic oil and natural gas!
We have witnessed a tremondous rebirth of American ingenuity, enthusiasm amoung American inventors, and hope for economic stability.
The seeds of an economic and energy based revolution in America have been firmly planted and Americans are anxious to reap the harvest. The discovery and production of domestic oil and natural gas can and will make America sustainable and strong, as long as America retains complete control and makes them abundantly available to Americans at a low cost.
Once we are stable and healthy, then we can certainly extend our technology and surpluss resources to others around the world. Humanity depends upon global economic stability and efficient use of natural resources.
The strength and power of America is the people and proper management of domestic resources.
By subjecting the American people to constant social and economic instability, and giving control of our domestic energy resources to a foreign government, our politicians and corporate executives risk loosing their power base.
The purpose of sharing my story is to inspire landowners to carefully consider the importance of retaining domestic control of domestic oil and gas, discuss this with state and federal representatives, and take whatever steps are necessary to help strengthen the American economy by using domestic oil and natural gas rather than foreign oil, encourage development of infrastructure to make domestic oil and gas widely and abundantly available to American citizens.. FIRST!
Nice letter. I hope that the portion of your letter detailing the advantages of utilizing a domestic resource such as natural gas sinks in with the politicians and the various organizations that seek to restrict our ability to safely produce this resource.
Sadly, the Department of Energy was created in 1977 specifically to develop a national energy policy following the debacle of the Arab Oil Embargo. 35 years later we still have no semblance of a national energy policy.
771KS, just read the letter you posted...it is well written, enjoyed reading it.
YET..if you haven't sent the letter yet.. but pls put your last paragraph up front as the header of the letter. Otherwise because of the length of the letter the main purpose might be overlooked...and they may think you are just complementing natural gas and just file it.
"the importance of retaining domestic control of domestic oil and gas"
. as that is the drift of why you want to send the letter I think...and it would behoove the individual reading it to know that is the concern of keeping the infrastructure of natural gas and oil a USA enterprise for US holdings.
for most of the text is sharing how good to convert to natural gas...and meanwhile china is buying it up with some other countries...and I doubt that there are enough people like yourself that would actually point out the problem to the US government ...but if they do, I sure do hope that someone with intelligence to understand will act upon doing something to bring the USA back into the driver's seat of control. The oil companies and the emplyees of oil companies are in the mind set that leave the govt. out...but their reason is that it may cost them..or slow up their profits....yet they are not that loyal to the USA if they do not see what China's plan is and come up with some good guidelines how to have China as investors but not as Owners of the whole thing...but they are the ones that would make the money in the sale...but we would be stuck as Lessors with a lease with China.
Thank you for the advice!
You made another good point!!
China, has their own shale play that makes the Marcellus play look small. It will eventually be developed with the help of American companies. I guess the Chinese could make the same argument, when the Chinese government makes energy deals on Chinese land with Exxon, Chevron, CHK, etc.... "The greedy American corporations trying to steal their resources"? Its pretty laughable. This is business on the global scale. Its about making money, nothing more, nothing less.
If a foreign company wants to pay me for my minerals, weather it be China, U.K ( Shell & BP), Canada (Talisman) all who have leases in the marcellus and Utica more power to them.