"Utica Shale" Oil & Gas lease offers

There are contracts being received in Belmont County from Pleasant View (Kyle Rice, Land Man).  The cover letter says "for exploration of the Utica Shale formation", but the contract is a Non-Surface Oil and Gas Lease for "all the oil, gas, and their constituents, whether hydrocarbon or non-hydrocarbon, underlying the land....".  Does anyone know about this?  $2000 signing bonus, 15% royalty.

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Replies to This Discussion

Permalink Reply by Finnbear on August 30, 2011 at 1:50am
Have a good Oil & gas attorney explain anything you don't FULLY understand in a lease before you sign it. If you get a good explanation for the Pleasant view lease you will be amazed at how bad a deal it is for the landowner. There are better deals out there for Belmont County. What Twp are you located in?
Permalink Reply by Renee E. Dorsey on August 30, 2011 at 4:55pm

I got the exact same letter; showed up in the mailbox Saturday.   Finnbear, please enlighten us on what you know!   Thanks!

Permalink Reply by Finnbear on August 31, 2011 at 3:23am
There is a leasing clause in that contract that basically gives them the rights to any and all land you own now and in the future. You are "giving away the farm" by signing with them. Sadly, many will jump at their offer without fully understanding what they are signing. Either read and study and understand it for yourself or pay a good oil and gas attorney to interpret it for you.
Permalink Reply by Elsie Fox on August 30, 2011 at 6:48pm

 

My neighbor received the offer.  It's a mess, though, because it was addressed to her name at my address and lists her acreage, but my parcel number.  Does anybody know anything about Kyle Rice?  Oh, we're in Pultney township, but two other people who got one don't live in this township.  The whole thing doesn't make a lot of sense.  I read the contract, and it's not something I would sign......at any price.

 

Renee --- There may be a common denominator to the offers.  Did you join the Hidden Valley Outdoors landowners' group?

 

 

 

 

Permalink Reply by adam sorell on August 31, 2011 at 12:35am

got one too. I am in Pultney. I'm going to their office later too see if it's for real.

I only have 8 acres

Permalink Reply by Finnbear on August 31, 2011 at 3:14am
Pleasant View has been carpet bombing the county with these offers for about a month. As they come across property in the County Recorder's office that shows as not being leased, they send out the letters. This is what Wishgard did last year and the got lots of people to sign at $1840/acre ($2000 less their 8% cut).
Permalink Reply by Renee E. Dorsey on August 31, 2011 at 4:28am
No on the Hidden Valley group; who are they? Maybe I should ck that out....
Permalink Reply by Elsie Fox on August 31, 2011 at 8:39pm
It's one of the landowners' groups that try to get people to join together to negotiate for a contract.  At first it seemed like only those people were receiving the Pleasant View offer, but I was wrong.  I don't know anything else about it. 
Permalink Reply by Doc on August 31, 2011 at 1:04am

Walk away ( run away ) from this lease. Read the description paragraph under the leasing clause carefully. There are better offers with owner friendly language on the table from other companies. Finnbear is right....have a qualified lawyer read anything that you are considering signing. See the other discussions under Belmont for examples of other offers.

Permalink Reply by adam sorell on August 31, 2011 at 1:23am

Ok thanks i will read it. Do you mean the part where they say something about  having right to all land owned by lessor???

Permalink Reply by Finnbear on August 31, 2011 at 3:17am
Yes. You don't want to give away the farm. As I understand it, you can contact Gulfport directly now and probably get a better offer. Chesapeake via DPS Penn is also active in the county right now.
Permalink Reply by Michael Lawrence on October 10, 2011 at 12:37am
Finnbear.. with the Pleasant View Mgmt lease.. you have to read the exibit pages 5-7.. that details the drilling and leasing commitment in the land owners favor.  first 4 pages are the standard ohio lease.. exibit supercedes.    Kyle Rice is part of the RICE ENERGY FAMILY.  they are an actual drilling company.. currently with wells that are producing over 44million cubic feet of gas a day...  think what that land owner is making on a monthly royalty check...   i can bet you will not speak to any representative working your area that owns its own drilling rigs and will have 4 rigs working in ohio by next year....!!!

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