CAN SOME ONE ANSWER THIS QUESTION
CAN SOMEONE TELL ME WHAT SURRENDER AND CANCELLATION OF GAS LEASE MEENS?
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Replies to This Discussion
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Permalink Reply by Dan Warfield on
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Sounds to me like the company doesn't want your property or old well anymore? Could be a good thing because you may be able to re-lease with another company. Or, could be a bad thing where a new lease was signed and the company decided they didn't want your property?
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Unfortunately and with the low price of natural gas, maybe Shell is going to back out of many of the $3,250 per acre deals in Butler County and come back next decade and offer less. Lets hope not.
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Permalink Reply by Jim Litwinowicz on
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Hard to say without more info.
1 It could be you signed a lease recently and they changed their mind and have cancelled the lease.
2 Could be an older lease that they didn't drill on and it has expired.
3 It may be a very old lease that had a producing well that is now abandoned/plugged and they surrendered the lease.
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Either you gave somebody an inordinate amount of time to pay for the lease, and in the interim somebody drilled a crappy well or you gave somebody a lease that required the ongoing payment of annual delay rental payments in order to perpetuate the lease then it is simply a matter of their not desiring to pay the annual delay rentals in order to perpetuate the lease any further... which probably is a result of somebody having drilled a less than desirable well nearby. You don't walk away from any type of liability associated with having to plug a well simply because of the fact that you surrender the lease. Your liability for plugging a well has nothing whatsoever to do with surrendering a lease. If you had an existing lease that terminated by it owns terms then there is nothing to surrender and nothing to cancel.
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Permalink Reply by SBRW on
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Where are you located plus who were you leased with? Heard that some companies were pulling out for now.
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In addition to what you've read previously, the term surrender is also used by rights owners whose leases have expired ... no drilling done. When that occurs, the rights owners should request a formal letter of surrender from the company previously holding the lease. This is strictly for your records and those of future generations ... proof that that particular company has NO CLAIM on your resources. That leaves you free to lease again ... no qualms. 4-County members (NY/PA) have been encouraged to follow through on this action, and so far every company has complied without difficulty.
Back in '08 when the economy tanked, numerous rights owners in NE PA holding lease documents granting them $5,000+ per AC and up found letters in their mailboxes saying their leases were "rescinded" i.e. given back. Same thing you're referring to I believe.
Lesson: Don't spend that promised $$$ until it's in hand.
Hope you weren't hurt by such an action.
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Last thought: What kind of a time frame was established for the lease to appear for your signing? Sounds like you've been quite patient. Perhaps it's time for a formal letter to be sent out (registered mail) requiring the document to be mailed by ___?
If possible, start looking for a group that has better representation than whatever(whoever) got you into this situation.
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Permalink Reply by Nut leesduh on
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We're interest to know the details that you can tell us as a lot of us in various locations Have been sitting in the dark for months waiting on lease papers that haven't come yet. I'm in northern Butler Co. waiting and sure would like to know of any activity especially Shell.
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