Replies to This Discussion

Permalink Reply by TWB on May 2, 2012 at 9:19pm

Could you please clarify?
My family leased our mineral rights in Marshall County just a few months ago but I'm unfamiliar with this term Lease Ratification.

Permalink Reply by Ann Whitchurch on May 3, 2012 at 6:38am

There are provisions like pooling and spacing that are often left out of old leases.  Basically they are requesting I sign an amendment to the old lease.   I have not yet seen the paperwork they want me to sign.

Ann

Permalink Reply by Denver Gallentine on May 2, 2012 at 10:25pm

Ann - Not knowing why the oil company wants the lease ratification my advice would be take it to a lawyer before signing .  Sometimes the ratification is just to"shore-up" the understanding of the lease.  Often it is because someone who was a minor when the lease was written is now 18 years old and now has to sign it as an adult. During my career I worked on many union contracts and I found out@ a young age that changing an "a" to a "the" makes a huge difference.  You may be offered some positive change in the contract or compensation, but I'd take both leases to a lawyer just to be safe.

We have 122 acres in Webster District.  Have you heard anything?  -  Denver

Permalink Reply by Ann Whitchurch on May 3, 2012 at 6:41am

Denver, they say they want to drill a Marcellus well.   Initially they offered no compensation however I hope I can change their mind about that.  My minerals are being held by gas storage wells.   I don't have any recent Webster Dist. news but will post anything I hear.  Please do the same. 

Ann

Permalink Reply by Denver Gallentine on May 3, 2012 at 8:02am

Ann - There are some really smart guys that frequent the Columbiana County, Ohio site.  Utica Shale is one. There are many more.  They could give you much better input than I can.  The oil Co. wanting to go deeper will eventually be great for you, but try to get your best terms.  When we signed up we didnt realize we should get royalties from the well head not after transportation.  That's going to cost us.  I've been told by one source that our land will be drilled next year because the lease will expire, but I've also been told by Chesapeake they have no immediate plans for Marshall Co. (I don't know what immediate means to them).  Good luck and keep in touch w/ progress.  Denver

Permalink Reply by Ann Whitchurch on May 3, 2012 at 12:47pm

Denver, I assume you've been reading about Aubrey McClendon and Chespeake in the news.  I've thought he's been an erratic loose cannon since a dozen years ago or more when he screwed stockholders - was caught exaggerating reserves in NW LA and NE Texas.   I HATE dealing with Chesapeake as a mineral owner. 

As respects the transportation and other charges, it's very hard to get Chesapeake to sign an addendum without them.   I'm in Oklahoma, bought my WV minerals at auction with gas storage wells (& lease) already in place.

Thanks for the Columbiana site.  I will check it out right away. 

Yes, will keep in touch.

Ann