Having just read on another site about a oil/gas company check being returned, I realized a few folks throughout the PA Marcellus have adopted this action.  This has happened when a lease has expired or is near its expiration date, and the O/G company wants to maintain its hold with little if any improvement upon the first numbers and/or clauses agreed upon.  Figuring the person receiving the check will cash it without much fore-thought, the stage is set for another 5 yrs. or longer.

Folks are catching on! They don't have to cash these checks. They can send them back, and request a Letter of Surrender ... documentation from the O/G company that proves the lease is no longer valid. It's likely at this point that a company landman will appear on your doorstep --- again!  However those choosing not to open that door can open another one for a better leasing experience ...  allowing better clauses, higher numbers, and more protections than anyone knew were needed a few years ago.  We're understanding more and learning to take our time.

I've read and heard of this company ploy(an unasked-for-check) being used in Tioga, Potter, and Westmoreland counties. That's a good spread of territory so it's likely happening elsewhere. 

Anyone who can validate this scenario happening in your county, please give the rest of the GMS readers a heads-up!

Views: 6102

Reply to This

Replies to This Discussion

won't have to worry about this with cx-mopo in mercer ehh janice

p umpjack,

Wouldn't you think that with the expert help of the folks at CX this question shouldn't even be asked by one of their minions ?

Triple F & P-diddy,

 

You did not give ample time for the endless self-promotion.  Please Janice, by all means ignore these insensitive peons and feel free to plug in your light dairy product analogy here.  Then talk about how you're here to help educate and not for personal gains.  And don't forget to add the fairy tale ending, that's always a nice touch.   

Janice,

Depends on if there is a renewal clause, and if there is a first right of refusal clause.

You guys are full of yourselves tonight.  I saw your other posts this evening. FF and PJ give it a rest!  

Understand there are folks on here that are total newbies and need to hear(read) the very basics. Nothing wrong with that. However I doubt they got much from the discourse you've just had w/each other or my first sentences in this post.

Shame on us.  This is meant to be an educational forum.

Janice,

It is for the benefit of the newbies and those who only read that I post. My effort is to expose the frauds.

People who have nothing to hide have no reason to fear my questions and posts.

Janice - you need to get your thoughts straight here - Fang F Fang & p umpjack HAVE been on this for quite some time. I understand your not being able to be 'clear' on who, what...but they have no 'hidden agendas' (as you will learn to pick up on with others - but that is for YOU to 'discern' for yourself.). Just relax. as you go on - you WILL begin to tell the 'woods for the trees', but it does take some time, patience, AND research. I say again - Fang/p umpjack are 'on your side' of thought distillation.

I have recommended a *number of times that SINCE this site HAS grown by leaps and bounds - that there SHOULD possibly be a 'color coded' assignment for landowners, lawyers, G&O employees, pipeline, +...THIS WOULD help people to be a 'bit' (*well*bit) clearer as to who they were hearing from.

What I found when I was first on - I was 'gruffly treated' by individuals in ways that I believed to be unnecessarily & confusingly obnoxious. PULL BACK & keep your head about you - SIFT the 'wheat from the chaff', and GAIN in understanding - for THAT is what you are trying to attain, and you shall.

---------------------

Be patient. Read, ignore the 'clap-trap' & gain in advice that is sound. There are MANY who WILL help you as you learn to help yourself in gaining understanding. Where there is a will, there is a way. Peace. Relax - it'll all work out...hopefully for the best for yourself.

ALSO - just so you know...there has been 'bad blood' in some ways with thoughts concerning various happenings within the G&O for people who DON'T want for YOU to be entangled in the G&O snares that have 'trapped' others (YES - there have been 'horror stories'! - but as you research & LEARN for yourself - it IS so...sad to say). SO - on some things just let it go - it's not you sometimes that certain 'jabs' are aimed at...you'll understand as you go along....

It ALL takes time - you're fine, Janice - just take a deep breath...this site has a wealth of GOOD information - and you'll begin to 'recognise' the 'bad apples' when you see/read them - IGNORE.

As one light lights another, nor grows less - so nobleness enkindles nobleness. Be wise.

Ive never heard of a company sending a check when a lease is about to expire unless the lease has an automatic extension.  In which case, it doesnt matter if you cash it or return it, your locked in for the extension term.  You cant refuse a payment when youve already agreed upon the extension amount.  Maybe im misunderstanding this post??

Dane,

You don't misunderstand.  As you notice there is no reply to my first comment. There must be a renwal clause or first right of refusal clause in the lease or some other mechanism in order for the company to send a check.

Fang,

Janice is referring to this thread, where the poster states he has an expiring 5 year lease with XTO that can only be extended with written permission from him. In your opinion, would an O & G company agree to such a clause in the current leasing environment in Butler County, PA?

http://gomarcellusshale.com/forum/topics/larger-landowner-bonus 

I totally believe Oil and Gas Companies are doing this. Compare what they have to gain to what they have to lose. 

Send out a hundred checks with letters craftily worded such that the innocent lambs who believe what they are told, cash sign and accept an extension for 5 years even though their lease has no such provision. What percentage sign? 50%? 75%. For the O&G any percentage is a win.

To those that refused the checks, the companies say "oh yea, we made a mistake, let's start over".

Once the scam is exposed, those disgruntled signers of checks now have to plod through the legal system to get the lease if possible revoked which due to the craftily worded letters make it nigh high impossible.

Wolves prey on lambs!

Oliver,

It probably depends on how badly the company wants the property. It never hurts to ask.

RSS

Local Groups

advertisements