Replies to This Discussion

Permalink Reply by Utica Shale on April 27, 2012 at 7:37am

Herbert,

 I don't understand your TITLE: "Gas company already giving royalties"

 If there is no well, then there is no production, then there is no royalties.

 

 " Is it possible for a company drilling for utica to offer a lease on property with a lease already on that property "

 Is the orginal lease just for the shallow layers only?

 

 " No well on property , just part of a 40 acre parcel. "

 WHAT is just part of a 40 acre parcel?

Permalink Reply by john p halloran on April 28, 2012 at 4:51am

It is possible,but it all depends on how the lease is written.

Permalink Reply by Utica Shale on April 30, 2012 at 3:40am

John,

 

 Are you refering to the type of lease where the Signing Bonus is an "advance" against the landowners future Royalties?

 

 Without a producing well I still state that are no royalties.

 

 

Permalink Reply by 0i7okn54zwbdo on April 29, 2012 at 3:17pm

If the property is leased then the answer is usually no, nobody can lease you again.  They can buy your lease and pay you to modify it, but that's tangentially different than what you're asking.

Permalink Reply by Utica Shale on April 30, 2012 at 3:27am

Marcus,

 What if the original lease was only for a shallow vertical well, with the deeper layers reserved by landowers? Then could Herbert lease the Utica layer to a different driller?

Permalink Reply by Herbert Jay Walton on April 30, 2012 at 3:50am

This is what i was talking about.How would i find out f i could do this . the lease i have had is with enervest operating LLC

Permalink Reply by 0i7okn54zwbdo on April 30, 2012 at 7:03am

If the original lease specifies strata then it would appear that the landowner is free to lease the other available strata.  

Herbert, you need to get a copy of your lease and read it over.  If you are unsure of what you're looking for then you may contact an attorney to help you.  Enervest bought out a lot of leases here over the decades.  If your lease is currently held by Enervest it may not have been signed with them initially.  Find the old lease and you'll find your answers.  If you find it and send me a copy I'd be happy to look at it, but I still recommend getting an attorney.