Mineral Rights HBP...options?

Family has been approached on leasing a tract and we also have a tract leased. The mineral rights to these tracts were obtained through father-in laws estate.  We had no contact with the lease owner and the well that is on the one tract is 1920's and from what little paperwork we received it was plugged in mid 90's.  We still get a small royality check from it.  The well was sold and was surveyed in the 90's and from what i can tell from the papers, it was a 2900 ft deep well.  

Ok, now there you have a little bit about the tract.   What i would like to know is there any type of clause that can be added to a lease for Shale drilling?  Also from what we can tell, my father in-law had leases for 1 1/2,  2 and 3 years back in the 80's.  Did companies do leases that way back then?  Now days i here about 5 year 7 year leases and as long as the company makes an effort at the site it carries on with the lease.   We have never saw the lease contract and plan on getting in touch with the lease Co.  Is it possible the lease could be outdated or not current and could be redone?  Just asking some questions to get a feel of what to expect when we talk to them.  Thanks so much from some greenhorns LOL.

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Permalink Reply by Finnbear on December 6, 2012 at 7:23am

The lease will not be fully valid unless all named owners sign. if only some sign, the property is just tied up but nothing else can be done. No drilling, no money, no sense in doing it. You (all the owners) MUST approach a lease as a united front or you will end up with nothing. All of you need to sign TOGETHER.

Permalink Reply by Oliver Perry on December 6, 2012 at 12:53pm

DL,

You need to talk to an O&G attorney. I was under the impression that in PA it is possible to lease the percentage of the rights you own, it doesn't have to be 100%. That is not the best way to go about it, but I think it can be done.

Permalink Reply by Finnbear on December 9, 2012 at 4:48pm

What happens when one of the others involved decides "I want no part of shale drilling and I'm not signing anything!"? The O&G Co won't want to pay you on that lease because that dissenting owner could prevent them from developing the lease.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on December 9, 2012 at 3:05pm

DL,  Don't sign a lease with an O&G company on your own. Get your relatives together and find a land owners association or a lawyer that can write a landowner friendly lease. If you need a good lease take a look at the ALOV lease on alov.us under the March 2012 Lease file. The O&G company leases are one sided and the more you learn the more you will ask yourself "Why did I ever sign an O&G company lease?" If you ever find a person who is happy with a lease that a landman brought to their door let me know. It would be a first.    Ron 

Permalink Reply by D L T on December 10, 2012 at 8:56am

Thanks Ron for your reply.  We have been busy contacted family members and to some this oil and gas thing is a big suprise.  I even talked to people who knew more about the properties and talked about going there when they were kids some 50 years ago.  I went to the ALOV site and read the Ohio lease and several other topics.  Do any folks here know of or can supply a Lessor friendly lease to use in Wv. that gives the mineral owner their fair rights? Could the Ohio lease be a good lease to have drawn up by an attorney for Wv.?  Thanks everyone for you help.  

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