Is it time for a HBP landgroup ?

  With the huge number of acres in the Marcellous & Utica held by production & the old leases that go with them , the general concensus seems to be "you're out of luck", yet many of those old leases have unitization limits too small to suit the horizontal drillers. Why are these acres just out of luck ? Usually landowners are told, well they had to buy the lease from the current operator or JV with them, so no bonus or higher royalty for you. Let us rewrite your old 1/8th lease to suit us or we'll go around you. But if enough HBP acres combined & said no, we want a little something too, then would we not have at least some bargaining position ? Just a thought, opinions please.

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Permalink Reply by Michael Lawrence on January 18, 2012 at 6:17am

you will recieve your 12.5 % royalty.. if they drill.. will take very good care of you

Permalink Reply by Carl Penick on January 20, 2012 at 2:42pm

     I agee that we should form an HBP landgroup and I agree with Little Cougar. I know several landowners who are HBP in our area and would like to know some unanswered quesions. We need to have more gatherings to clear up the misconceptions some landowners have and work together for the common good of all involved. I have just recently became involved in this myself and want to educate myself as much as possible on this issue. My neighbor wrote the following letter and had me type it up. We sent this and other versions of the letter out to newspapers and legislators in our area:

To Whom It May Concern,

Eastern Ohio landowners can create a job stimulus plan that will cost the taxpayer absolutely nothing. The only thing needed is for our officials to pass a law stating that the ownership of land and mineral rights under their old leases rightfully belong to the landowner.

The oil and gas rights leased 30 - 40 years ago have been honored. The oil companies drilled to the formation (Clinton wells) they leased and in many cases had acreage leased to drill many more wells which they did not do.

Now a much deeper (Marcellus & Utica Shale formation) and new method of drilling has been developed and the old lessees are claiming rights to that grounds’ oil and gas rights as well. Our representatives need to correct this issue right away. If this matter is not taken care of the lessees will only get richer. Make it right and the landowners and farmers will be buying new tractors, farm machinery, new trucks, autos, remodeling buildings, building new homes, and last but not least, they can provide the financial support for their children and grandchildren to get a better education.

We are only asking you to do what is right and fair. You make the law and we will create the jobs by buying the products. This can be done at absolutely no cost to the taxpayer.

If you agree with the opinions of this letter, let’s unite by calling or writing your state officials. Why should a few be allowed to ruin the opportunities of thousands? This could be a jump start to our weakened economy.

 

Two newspapers printed this in the editorial page.                                                                                    Please give us your thoughts on this.

Permalink Reply by fred on January 20, 2012 at 3:53pm

This is exactly my situation. Only  2 of 6 wells were drilled from a 1973 lease in 1983, the google earth map info shows they are "Temporarily Abandoned" and the Ohio Div. of Geological Survey Well Summary reports show no days of production from 1998 - 2009 (last year of report).  We received our last check in Oct. 2011 for $60.00.  They have not developed the wells as leased - why should they be entitled to the deep rights when they only had the means to drill Clinton wells? 

Count me in the group.

 

Permalink Reply by Mark Allen on January 21, 2012 at 3:23am

there are laws and regs already on the books about unitization and assignments,do not compromise and give in without a fight,seek legal council,stick together and hold to your ground.

We all can pitch in and share our knowledge,take the time to talk to each other,so that we do not get divided. 

Permalink Reply by matt on January 20, 2012 at 5:02pm

carl, what kind of responses did you receive on your letter? i totally agree with you also on the leases signed 30-50 yrs ago the oil and gas co.s at that time had the intents and purpose to purchase certain depths. which in my area was the clinton and berea depths and that is exactly what the land owner thought he was selling.how could a land owner willing sell the marcellous or utica minerals when he didn't even know they existed.i'm all for the oil companies making huge profits on anything they've negotiated recently. however i think its wrong to claim these old leases when that was not the intentions of these original agreements.  

Permalink Reply by Alan Pavlik on January 20, 2012 at 10:52pm

I totally disagree with your "adopted" class warfare mentality. This seems to be what our President wants us to believe. You state "If this matter is not taken care of the Lessees will only get richer", why don't you just come out and say" I have been treated unjustly my whole life and I want someone to come and fix my situation", so you want the government to step in and fix your problems. How? by taking money away from the so called rich Lessee and giving it to you!  And how do you want this done? by breaking valid contracts!That is called welfare to me. Let someone take the risks and work their tails off and then give you what they have earned. You should be ashamed of yourself. If the Lessee gets rich then so does the Lessor. Your way will only weaken the economy because if we do it your way you are basically saying break the these contracts they shouldn't apply to me because I want what I think I deserve. That is how they do business in Russia. How do you think their way of life is compared to the U.S. If you start having the gov't breaking contracts for you then everthing goes out the window. Lessees hire people to do work that's helping the economy. In my opinion you don't want what's fair you want it all, screw the Lessee, "class warfare" it's a dangerous position to take. That is my take on it. Thank you

Permalink Reply by Billy Park Whyde on January 21, 2012 at 4:36am

 Alan I somewhat agree with your statements you made. However the Federal government and most state governments have put into place over the years laws and regulations to protect BOTH SIDES of the fence. For an example the government requires a truth in lending statement, some states have lemon laws, the FDA has a ton of laws supposedly to protect the consumer. In all of these case the government has saw fit to entertain a right to terminate a contract. 

  I myself would like to see a standardized lease form that specifically points out the detail in a lease similar to a truth in lending statement.  Make it a standard form with the cooperation of the oil and gas industry and say the attorney generals office as a consumer protection act. 

   As we know landsmen have taken advantage of individual in the past and will continue to do so unless stopped.  To me it is despicable for landsmen to offer thousand of dollars to a not so smart individual be it a elder or a person whos wants to believe all people are good when the landsmen knows all of his promises are not on paper but just bull shit.

  Some here are aggravated and want a piece of the pie. Would it hurt a company that has had good dealings with a land owner to say I have the power to make some money now that a SIGNIFICANT CHANGE has occurred but include we? The leasee is looking to make a profit that was not envisioned by him years ago. A way to keep peace is negotiation in good faith.

Permalink Reply by Michael Lawrence on January 21, 2012 at 3:37am

Well Carl.. first of all Chesapeake has over 1.5 , million acres held by production and leased.. do you think that the state of ohio will go against a giant who is investing billions of dollars into our ohio state community.. creating situations where land owners and production companies are already buying new cars, tractors and more... your best bet is to contact the company who holds you by production and see if they will deal with you as the surface owner.. good luck.. be thankful you live in the united states. the only country in the world where citizens can own and benefit from mineral rights..

Permalink Reply by Billy Park Whyde on January 20, 2012 at 3:47pm

You have a good idea Mark if we the po folk can at least spread the word through a group the more likelihood that they will accommodating to the idea. Being in western Muskingum County I have thought about it myself. 

Permalink Reply by Billy Park Whyde on January 20, 2012 at 4:10pm

I think if its ok with the originator of GOM we could use this GOM as a starting platform. I think it would be an idea to form a 501 (c) (3) non profit to operate it as. I would think that some luckier ones that might have enjoyed a bit of wealth from this play might donate as it would be a tax deductible donation as well.  Press releases cost money,  and so do the efforts of a board to coordinate activities.

  As I see it the anti frackers are using a non profit structure so can we.

Permalink Reply by Mark Allen on January 21, 2012 at 3:20am

we have a huge movement started several leaders on board, we will be addressing through our petition a HBP bill of rights, 3 phases, we have reserved a website that will eventually house the petition for all to read and share.  uticashaleassociation.org    the sponsor is educating landowners throughout the state and continues to help with those leasing efforts. He can be reached via the site or 1-740-491-8229

Permalink Reply by Michael Lawrence on January 21, 2012 at 3:53am

oh boy.. another bob rea... tell us your cut up front please...

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