Last week it was at the Petersburg and Springfield townhall. This week HilCorp will set their team up at the Struthers and Poland High School, even the Poland Methodist Church is going to have Hilcorp presenting to all the landowners large and small that they too are a part to the greatest Oil and Gas find in American history. As should be they are taking the leases straight to the people en masse, every parcel from the quarter acre to the cemetary, landgroups are now obsolete. Of course no one is forced to sign and are allowed to take the leases to their lawyers if they so choose.
Very shortly, all of Mahoning will be leased and next year the production begins. Folks, this is what we at Ohio Land Management have been waiting for and have studied as landowners to be the best way to get production started, after all we understood paper flipping was the name of the game in the beginning but we knew right away, that what really matters in the long run is when do we get to see the corn from the stalk, the matured prawn that will bring the payment in, the harvest.
Do you know what signing bonuses and percentages are on the table currently at the meetings? Do know also know if the next move is north, south, east, or west?
Hilcorp, a multi billion dollar production company is paying $5000 an acre, $20% , payable in 60 to 90 days.
Who wrote the Lease?
Is it a landowner friendly lease or a HilCorp friendly lease?
If it is the same lease they were offering in PA, it stinks for the landowner. For example they can pool non-contiguous parcels, 1280 acre units, lists certain costs that won't be deducted but I doubt you will ever see the percent royalty they list. Nowhere does it say "Gross" or "without deductions". No definition of "market price" for the products. Water will only be replaced if problems arise as a "direct result of operations", go ahead and prove that they caused it. It just goes on and on. They are relying on people peeing down their leg to get the bonus, and then they have you. If you like those terms go ahead and sign.
What bonus and royalty are they (Hilcorp) offering now in PA?
If what you say is true "a Driller Friendly Lease" then I disagree with Ron that "landowner groups are now obsolete". Unless, you personally own a huge block of land then a Landowners Group is needed to get you a Landowner Friendly lease.
The Signing Bonus and the Royalty Percentage are only two items from a huge set of Terms and Clauses that a Landowners needs to get correct to sleep well at night, breath fresh air, drink clean water and stay out of court.
Tim; my lease with Hilcorp states "shall be paid without deductions." And market price is defined. State law mandates that all O&G companies are presumed guilty of all water problems within 1000' of a well unless they can prove otherwise. And the legislators are proposing increasing that to 2500' which should pass this spring.
Hilcorp has landmen out offering leases that are not the same. That lease has many different clauses that are much more friendly to the company.
What "State Mandated law" are you speaking about as far as the presumption of guilt on the Gas company?
This makes no sence at all, no one would ever get drilled if this were true.
Does this mean that if they find something unusual in a well 1000 to 2500 feet from me then I have no chance of getting a well on my land ever, since they will ultimately be responsible for anything close the problem. Forever??? There is a well about that distance, easily, from me that was drilled in the 40's.
Yes it does. The lease Hilcorp's representative presented me stated "Lessor shall not be responsible for any drilling, completion, production, transportation, or treatment costs....." It never says "without deduction" or "gross proceeds". I highly doubt anyone will see the 17% in the lease. There are still many things not in the EXPLICIT list they can deduct for. If their intent is to pay the stated royalty why not say without deduction or gross. Some leases say X% of 100%, there that clears it up. Another thing I didn't like was that there was no remedy for any default on the lessee's part and no requirement for liability insurance. That could be a big problem if they flip the lease. Did your lease allow pooling with non-contiguous lands? There is no way I'm agreeing to that one. Maybe I need to call Hilcorp directly?
My lease says they must indemnify the landowner. And says without deductions. Maybe you should look at a lease from Co-X
Ron, Can you answer the question above that Utica is asking you. I think many people would like to know what find of lease this is !!!
Craig, the only lease I was involved in was my own lease..........I will never practice law since I am not a lawyer so other landowners leases are not my business. BTW, some of our clients decided to lease with CHK, I think you are getting the wrong message here. We manage and infact, I am paying our management company to manage my personal real estate for everything pertaining to oil and gas. If any of you want to see a Hilcorp lease , call them up they have an office I understand in New Castle. Also, most Mahoning county residents by now have rec'd cards with phone numbers on them, who do you think I am, a middleman?