Butler County lease's

Shell is making the rounds in Cherry Twp and northern Butler County. I have seen there lease and to me it looks like they are offering $1,500  and 15%. The lease was  boilerplate!  Does anyone have any more details? I know they have an office in Butler now.  Is there any other Drillers that have been active as of late in this area?

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Replies to This Discussion

Permalink Reply by Preston Joswiak on July 22, 2011 at 10:58am
It is true that a lot of activity is going on now. The gas and oil has been there for millions of years and two weeks or years is not going to change that.  When you look at the fact that the goverment is going to get at least 33% and the fact it will take at least 3 years for the area to be productive. I feel the money in hand will be more to my advantage. If drill sooner fine!  The contract is worth more than the up front money in the long run.  I have found that what make more sense to you or I does not work in the Corporate world.
Permalink Reply by randall gottus on July 22, 2011 at 8:06pm

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.

Permalink Reply by Jon on August 8, 2011 at 12:56pm
It's tough to tell what will happen to the property. If it will just sit there for a while or if will be included in a well's drilling area. Here's a question though. Out of the wells that are producing in butler county how much does a lease holder get on average an acre per month? if the wells do produce enough to be useful then maybe negotiating the royalties is worth more than the upfront fee.
Permalink Reply by Preston Joswiak on August 15, 2011 at 4:09pm

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! 

Permalink Reply by CATHIE on October 19, 2011 at 7:46pm
could you tell me what your 25 addendums are?
Permalink Reply by Preston Joswiak on October 20, 2011 at 10:53pm
Cathy  I need to get my copy of the lease and I will list  what I have. It won;t be till at least Sunday
Permalink Reply by Preston Joswiak on October 23, 2011 at 10:54am
Cathy  I have my lease and the addendums are.  Hold harmless, Pugh Clause, Royalities without deductions for expense, $15,000 for well on property, Water Testing, DEP Compliance, No Foreign pipelines, No Processing Facility on property, lease covers Oil and Gas only, 500 ft setback, Timber Clause, 5 year Shut-in limit, Audit, Fenced in Wells, Warranty of title, restore premise to pre-drill conditions, and conflict of terms.  I have a total of 25 addendum some not listed above are related to the same subject.
Permalink Reply by CATHIE on October 23, 2011 at 11:09am

MR JOSWIAK

DID YOU SEE A LAWYER FOR THESE ADDENDUMS TO BE ADDED TO THE LEASE ? AND I THANK YOU SO MUCH FOR YOUR HELP

Permalink Reply by Preston Joswiak on October 23, 2011 at 10:53pm

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. 

Permalink Reply by Preston Joswiak on July 29, 2011 at 8:18am

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"

 http:// www.tribtoday.com



Permalink Reply by Terry W. on August 7, 2011 at 4:40pm

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

 

Permalink Reply by Jon on August 8, 2011 at 9:14am
supposedly they've been talking to the bulter county landowners group. you should talk to them they may already have something.

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