Gas Lease Sales and Trades

I had a lease with SouthWest and they turned around and sold it or traded it to Chesapeake. The lease was for 30 acres in Herick Twp. Now that Chesapeake has it they claim my lease is satisfied because they used 1.5 acres I own in Standing Stone Twp that wasn't in my lease. Because of the legal wording they use in these leases and the + or - deal they claim its all legal. There is a max acrage clause in my lease for around 600 acres in my unit. Now they want to amend my lease to allow 1280 acres in my unit or there not going to use anymore of my property. Does this sound right?

 

Sorry No Spell Check

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Replies to This Discussion

Permalink Reply by melissa humphrey on August 13, 2012 at 3:55pm

Porbably they are right.

Check, do you haveea pogh clause? that protects freeing non drilled land.

An idea, gas prices may be much better in yr 5-10 

Permalink Reply by Dale A Kuhne on August 13, 2012 at 5:29pm

No I don't

Permalink Reply by Frank Walker on August 14, 2012 at 11:04am

Dale

Without a Pugh clause your ice is very thin.  Very thin.

Can you post here the controlling language from your lease.  There still might be hope, but cannot say without seeing the binding language CHK is claiming.  What specific language in your lease is CHK using to claim a right to unitize everything you own?

And what does you lawyer say?  You did use a lawyer to prepare your leases . . . I hope!!

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