Replies to This Discussion

Permalink Reply by Calla on May 12, 2012 at 11:16am

Where in Mahoning County did they scrap a pad that was already built? The Geatches well is completed. The Jarvis pad was built. It had a leak in the liner, and had to be rebuilt. Where else in Mahoning County has a pad been built by Chesapeake?

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Permalink Reply by Vicki Herold on May 12, 2012 at 11:33am

Which specific pad in Mahoning county, Jarvis?

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Permalink Reply by Marcus Grayson on May 10, 2012 at 11:42pm

You're mostly right. "Commencement" has been generally accepted to mean that they are preparing to drill. If they have no permit issued than it can be reasonably inferred that they are not preparing to drill simply by building a pad. You cannot HBP someone's land by building a pad and making no effort to acquire a permit. The caveat, of course, is if they have applied for said permit but have yet to be issued it. An argument can be made in that case that drilling preparations have been commenced by virtue of pad building and permit seeking. Gotta love lawyers.

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Permalink Reply by Finnbear on May 11, 2012 at 8:55am

An oil and gas company can extend a lease for two years beyond its primary term for the price of a permit application and moving a little dirt. That is a lot less $ than paying the signing bonus again. Many boilerplate leases specify that this (and sometimes even less) is sufficient to be considered "commencement of operations" and that is good to hold the lease beyond the primary term for as long as the permit is good. Some leases even specify that this minimal activity is considered "production". This is why it is SO important to fully understand every word in the lease you sign.

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Permalink Reply by Hopeful on May 11, 2012 at 12:21pm

Definately something people signing new leases should keep in mind but a lot of people are in old leases that they signed "in a different era" or previous generation or owner. Of course the company would hold by production with a pad and unfortuanately there really isnt anything you can do about it. I know several people getting checks in PA and really bottom line is you want the well and that lease or bonus money is secondary (though I wouldnt turn it down ;-)) All in all still a good thing.

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Permalink Reply by Finnbear on May 11, 2012 at 12:29pm

I agree that I'd rather have the well drilled and the bonus money is just icing on the cake. I'm just trying to bring light to the fact that the answers to many of the questions posted here are contained in the lease involved. People NEED to know what their lease says and means, whether it be an old lease they are bound by or a new one they are considering signing.

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Permalink Reply by Kathleen on May 19, 2012 at 11:06am

When we signed ours I was happy to see it had an production amount to be HBP of 5 grand a year. Now at the time I thought that sounded good. Now I think all they would need to do is let it flow one day a year :0) to hold us. Live and learn.

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Permalink Reply by Utica Shale on May 10, 2012 at 11:43pm

Fang,

"... Go back and read your lease ..."

The completed pad is not on my property.

I already know that I do not have this issue with my lease.

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Permalink Reply by 0l1a6laz7smpf on May 11, 2012 at 3:33am

In Pa. it is necessary for the landowner with the site to approve the site on the DEP report.   Don't know if the oil companies adhere to that...but it is a fifteen day approval time for the landowner to approve the drill site location.  For you lessors out there involved in units you should check with the owner of the land with the well pad to see if they had a signed release with DEP that was done.

Of course you need to contact the DEP in Ohio to see what the rules are there or pull up the DEP info online...that's where I found the rules concerning an installation of the well pad and drilling for wells.

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Permalink Reply by Hopeful on May 19, 2012 at 9:41am

If you look at Google Earth, they recently updated pictures and the new one dated 4/5/2012 shows this well pad in midst of being made.

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Permalink Reply by Hopeful on May 23, 2012 at 12:38pm

Well it looks like some permits may becoming soon. In I think was Sundays Lisbon paper, listed new permits and have 9 sites that have Road Use Maintenence Agreement and note that this usually proceeds the permit. Looks like this well is one of them.

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