Replies to This Discussion

Permalink Reply by Brian on January 27, 2012 at 4:33pm

The seismic route went right past our house. I asked the man representing the seismic company who was doing the testing. He said it was for Chevron. I know they have leases they acquired with the Atlas buyout, but i do not know how they will be able to drill horizontal wells on leases written for shallow vertical wells.  My hopes are that their big shot attorneys will not be able to muscle their way into something that is not going to turn out very well for the landowners.

Permalink Reply by Jim Litwinowicz on January 27, 2012 at 5:24pm

First, I am surprised they told who it is for.  Usually the crews don't even know and even if they know are sworn to secrecy.

Chevron or any operator of shallow wells will come around asking for an addendum permitting them to use larger units, probably 1280 acres. It may be a separate agreement called a "pooling agreement" or something similar.

This is your chance to ask for some changes in the original lease. You will get some improvements but not anything like a new lease. You may get some things like a small bonus payment, a bump in royalties to 15%(try to get it without deductions), If you ask for too much they will walk.

Take the time now to prioritize want you think is most important because they won't give a lot. Maybe get together with neighbors to get more leverage. Don't ask for the moon but get what you can.

Good luck!

Permalink Reply by Brian on January 28, 2012 at 5:46am

That is basically what they have done. They have came around to the neighbors currently leased, offering a small bonus payment, and an increase in royalty from the current rate they are signed with. I would imagine that it details some kind of unitizing in the new wording.  Only time will tell how this all will turn out.

Permalink Reply by Jim Litwinowicz on January 28, 2012 at 7:46am

To me, the most important thing would be to get a better royalty without deductions. Even if they give a bump to 15% or even 17% but allowing deductions, they will find enough deductions to get you back down to 12.5% or even lower.

If the landowner's financial situation is dire, then getting a higher bonus would be preferable. I'd also insist on a couple of things like a Pugh clause for larger land owners, no regional ponds or compressor stations, and what ever else I could get.

Permalink Reply by randall gottus on January 27, 2012 at 6:32pm

Jim...no, Shell did not pull out of Venango county because they have spent their budget for lease acquitions...They are now taking one more final sweep at getting leases in northern butler county. Many of the landowners there, that I have spoken with, received letters last week (dated 1/14/12) asking them to call Shell regarding leasing. Mark's response on wednesday was correct regarding Shell going back into Butler county.

Permalink Reply by Jim Litwinowicz on January 28, 2012 at 3:54am

But is strange that they would have a fair number of parcels in Venango but are no longer trying to close in those units like they are doing in Butler.

What happens to people that signed in Venango but their neighbors are no longer given any offers? 

I was told by at least two people that they were to sign leases this coming week and they were told that the offers were being withdrawn.

Permalink Reply by Michael Walentosky on January 28, 2012 at 12:47pm

If anyone has information on the Shell leases signed in Cranberry Township and the pending bank drafts please share.  It is disapointing that Shell has stopped leasing, hopefully they will resume at some point.

Permalink Reply by robert vepich on January 31, 2012 at 5:29am

i heard first hand that all leases were being withdrawn as well from Shell.   Spoke with an attorney who heard some new company was coming in with serious backing(and actually has paid people)...waiting to hear back on a name and who they may be leasing for.

Permalink Reply by Brian on January 31, 2012 at 5:31am

Please post if/when you find out.

Thank you

Permalink Reply by Michael Walentosky on January 31, 2012 at 3:45pm

I spoke spoke with two shell landmen last week, assured me that all bank drafts would be honored pending title search.  Who did you hear this from?  

Permalink Reply by Daniel Rupert on February 1, 2012 at 1:04am

Robert, is it possible to share the name of this attorney? Thank you in advance...

Permalink Reply by Garrett Westover on February 1, 2012 at 4:50am

I doubt that Shell would withdraw any signed leases at this point in Venango County.  Shell is a good company and would not want bad P.R.

 

• ‹ Previous
• 1
• …
• 5
• 6
• 7
• 8
• 9
• …
• 20
• Next ›
• Page