Preston....yes, there are alot of factors at play here..the one that concerns me is FORCED POOLING, and how Pa. will define/re-define it over time...and will the word BONUS and ADDENDUMS soon disappear because of it?...or can I say the word NEVER? ...Many things going on here, and more to come. There are alot of resources [Bloomberg, Seeking Alpha, etc.] that offer some important information/direction/insights that can change the landscape overnight! I do not have the answers, and am paranoid of anyone who says they do. But your point is a good one...and that there are alot of moving parts to this, and you mentioned one of them.
The Pugh Clause was accepted by Shell. All a Pugh Clause is an out for the landowner if the the Oil Company does not include all your acreage in the pool and wants to hold your land without any compensation. I agree the details on Shells Lease could be stronger with reguard to the Pugh Clause but you have to ask yourself how important is this to you. The Pugh Clause was not that inportant to me personally since I did not have alot of land, but overal for the family it was a factor.
Hands down the most important Addendum was the Royalities without Deduction. To me that is the meat of the deal, a close second is the Hold Harmless. Both of them would have killed the deal!
DID YOU SEE A LAWYER FOR THESE ADDENDUMS TO BE ADDED TO THE LEASE ? AND I THANK YOU SO MUCH FOR YOUR HELP
Cathy I did not see a Lawyer myself, I had copies of other leases that were done by lawyers. I also did alot of research on the net, you can find in most area's all the lease's are on the net. Now they have none of the Addendums online nor does the dollar amonts appear. I just made my shopping list from the collected lease's.
I saw most of the completed landowner groups lease's in our area. They tend to be long and try to cover everything for everybody. I guess if you are dealing with a speculator instead of a oil or gas producer you need the extra pages of print. I have seen good lease's and bad lease's you have to know what you want and go for it.
Word of oil in the Utica in Eastern Ohio is starting to leak out. Chesapeake made the news on the quarterly earnings report. Read the July 29 Trib report "Shale Called rich in oil"
Anyody have some contact info on Exxon. I uderstand that they are moving into
northern butler county. Land Agent name and phone number.
See what is gong on.....right now it is Shell
If Exxon moving in, would be interesting to see what is in the making