Range Resources to Move a Rig by Helicopter?

Has any property owners whose leases have run out or about to run out had any problems with Range Resources?  We are in a group who hired a very qualified broker who has written our lease with Range.  This lease ran out several days ago.  We heard nothing from Range for 4 years and 10 months.  Our lease states several times that Range must drop a bit to the ground to hold us by production.  Now, just days before leases ran out Range has moved in on properties and some without permits, they have not drilled, prepared a pad, cut brush or built a road and they will not leave the property.  We have another energy company we wish to lease with and we are ready to sign.  Our broker has been communicating with Range in Texas and getting nowhere.  They have stated that they will move a rig in by helicopter if need be.  I just want to put the word out to be aware.  They have already told one landowner to contact legal council.  I even have a copy of a letter to another party from Range, for this party contacted Range asking them for a lease.  Range commented just several months ago that they had and did not intend on any activity in our area.  We are having an attorney submit to Range requesting a letter of surrender.  If this does not happen we will sign a new lease and there will probabally be a gas war between two gas companies.  You may read this in the paper is this goes this far.  Anyone having problems I wish for you to respond.

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Permalink Reply by JT on July 1, 2011 at 12:23am

With all due respect, you should be filled with joy instead of complaining. You're getting a well! Or wells!! Range will typically drill 3-5 horizontal laterals in a unit. Each of those wells costs $4-5,000,000 to drill. Additionally, Range will spend millions of dollars to remove the heavier hydrocarbons from the gas (on which you will be paid royalties), and spend millions to build a pipeline to take your gas to market. Range has the cash to do this and you couldn't ask for a better operator.

 

Have this broker you love so much show you the royalty interest calculator whereby you can estimate your monthly royalty check. Regardless of your acreage position, royalty income on a horizontal Marcellus well will astound you.

 

Again, with all due respect, instead of being excited about "gas wars", know you are among the most blessed in this world and be thankful to God for your good fortune.

 

BTW, I do not work for Range. However if Range showed up at my door and told me they wanted to drill a well, I'd be doing everything I could to encourage and help them.

Permalink Reply by farmgas on July 1, 2011 at 12:39am

 

Amen!

Permalink Reply by stormangasman on July 3, 2011 at 2:26am

Please let us know how this story ends.This shows the power of the gas co's.

Chief did the same to us last year (put us in a unit)  just weeks before our old $5.00 lease expired.

We have a permit filed to drille a well ,but no drilling activitie on property, but I'm glad now to be in a unit with several wells that will someday produce?? Gas line is just a few miles away & coming our way. Ya it would have been nice to get another signed lease with more up front money,but the gas co's don't see it your way.  good luck!!

Permalink Reply by karen brown on July 4, 2011 at 3:53pm
We are not getting any royalty checks.  Let me go into detail.  5 years ago my husband put together a big group.  All of our neighbors whose lands adjoined ours hired a broker to negotiate.  Our lease ran out June 21.  Just the adjoining tracts including ours totaled 1500 acres.  Our lease states in 2 places that Range had to comense drilling to consider being active.  Range agreed to this 5 years ago and they lead us to believe that they agreed to this.  Now the fact of the matter is.  We had our broker put us out for bid for a second lease and he got several interested parties.  One which all of us agreed on. They made an offer and agreed to the terms and we were to sign a new lease last Thursday.  Range permitted a well on one of our neighbors propertys which we are not unitized with before Ranges lease ran out.  Range moved in on this property within 24 hours of the dead line of their lease and cut some brush.  The lease ran out, they did not drill.  They were supposed to drill to be considered active.  The property owner asked them to leave 4 days later after s peaking with his attorney.  They were there everyday working until he asked them to leave, which they did for one day.  This property owner received a call from Range and was told that they would take him to court and he would have to post a 6 million dollar bond which is obsurd.  The property owner could not afford to fight a big gas company.  Range returned the very next day and are still working.  As of yet there is no pad or commenced drilling.  Now, Range has also surveyed another neighbor who is on the other side of us, no permit, no activity at all and we are not pooled in that unit either.  Range has put 2 big holes in the middle of our property group.  Now within 24 hours of signing our second lease the plug was pulled.   There is over 700 acres left that are not connected to each other and now we are stuck.  The second property owner is pooled by the first well as well as the one on his property and as our lease reads they must unitize 50% of your acreage which they did not, so now he is stuck with acreage inbetween and screwed.  This same thing has happen just 10 miles from us and they have the Same lease, same broker and the same energy company.  Just to let you know, neither of these two property owners want Range They have been lied to many times from headcourters  in Texas.  They have been talked to like they are dumb farmers which they are not.    Now those of us who are not pooled in these units and stuck in the middle just lost over 3 million dollars in sign on with a new lease.  The two property owners who are directly involved with Range have lost a sign on as well as 4% royalty increase.  Ranges response to these two property owners is that there is a case law from 1976 in Pa. that will protect them and Range states that they will win a court battle.  The new energy company called all of us and told us within 24 hours of signing that they were backing out for if they could not attain the whole amount of connecting acreage they did not want any of it at all.  Now if this is not breach of contract from Range, I don't know what is.
Permalink Reply by Jim Litwinowicz on July 5, 2011 at 1:55am

You need to get the best attorney you can find.  Try Stonecipher Law in Pittsburgh. I have never worked with them but heard them on radio show several times and they have a long history of O & G work in Pa.

 

Good luck

Permalink Reply by karen brown on July 5, 2011 at 9:15am
Jim, you remarked that you have never worked with them???What does this mean? Do you have legal background or some type of expertise with drilling.  Not questioning your reply or info, at this point I am open to any feasible suggestions.  I have had nothing but phone calls from property owners involved in this situation due to the fact that it was my husband who put our group together and I am getting stressed out on what and if we can do anything.  Even the two property owners who are directly involved don't want Range they have been lied to so many times it is not funny and now there is no trust between Range and the property owners.  This is a sad situation.  Matt Henderson replied to me about contacting someone in the state and I somehow lost the message and am trying to get that info back from him.  I sure wish someone out there with the same problem or someone who is an attorney could at least give me some insight.  I do not react immeadiately on any issue and give it 24 hr to cool down and try to think things through but this one has me stumped.  I don't know if it would do any good to try and contact Range, get legal advice and if that route would be taken we would have to do it as a group and find an attorney who would work on a contingency.  I would be willing to pay up to 50% of the take just to win it.  But us little folk do not have the funds to fight the big gas companies.  The sad part is that my husband works in the gas industry and he is between a rock and a hard place.   I will check out Stonecipher and thank you for your response. 
Permalink Reply by Jim Litwinowicz on July 5, 2011 at 9:38am

I'm not an attorney but a landowner that doesn't like to see people get screwed over. I don't know anyone at Stonecipher nor I have I ever had any business or dealings with them.  I just have heard them on a radio show called Natural Gas Matters and they seem to really know O & G law. Check them out and a couple of others.  Maybe they can help. Ask the other landowners to help pay for a review of the case.

 

From what you have told us, it seems as if Range has violated the contract and no company should be able to do so.  At the least they should have to match your best offer if they want to extend the lease.

 

As someone pointed out you will make much more from the royalties ...if they drill.  But all trust is broken and you now have no faith they will actually drill or are just jacking everyone over to hold the land.

Permalink Reply by Steve on December 3, 2011 at 10:23am

Landowners should be extremely wary of a lawfirm that represents both industry and landowners. 

Permalink Reply by Erich Schwartzel on November 30, 2011 at 5:51am

Hi Karen,

 

This is Erich Schwartzel, the energy reporter at the Pittsburgh Post-Gazette. I'm pursuing a story on drilling operations beginning 24 hours before a lease expires, thus locking landowners into low rates. I have several examples of this from across the state and would like to include your story. Can you call me when you see this? I'm at 412-263-1455 or eschwartzel@post-gazette.com. Thanks!

 

Erich

Pittsburgh Post-Gazette

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on November 30, 2011 at 7:00am

this discussion originated on June 24, 2011 and last entry by Karen Brown was in July...

Karen if you read this...would you pls post just what has transpired since then that may be helpful for all of us that have read your discussion and surely would like to know what happened?

gee,  I was thinking that Range Resources to give them better publicity should just sit at the negotiating table again with you all and clean up the mess that way.  It would cost them more money and hurt their reputation for all the squabblings...they would be better at giving a better directive by negotiating some better terms (perhaps another signing bonus) with you all.

I do agree with the joy at having a well...but if it isn't going to produce revenue in royalties any time soon...you all have already waited over 4 years...so that isn't necessarily that believeable for you all by now with Range.

Permalink Reply by Gunner Ostergard on November 30, 2011 at 8:17am

Range should save their money on the billboard and TV ads and try treating people fairly.  Word gets around in this small town.

3uq96odaochmjPermalink Reply by 3uq96odaochmj on December 7, 2011 at 2:32pm

Range Resources is a shady company - period.  They constantly leave a trail of destruction wherever they go. 

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