Renegotiating royalty percentage agreement.

Our gas company wants to increase our unit size 10%.  I feel my relatives got the "short end of the stick" when they signed their Royalty agreement at 12.5%!   We would like 15%-18% if we agree to allow them to increase the unit size. The gas company says no way. If my relatives don't agree to the unit increase the gas company may just abandon the other wells that have not been drilled. I believe this is a bunch of scare tactics.  Now my relatives are afraid they could lose any royalties in the future.  Has anyone been successful in renegotiating royalty agreements?  I believe that if the gas company wants to increase the unit size, that is so that they don't have to construct more pads and drill more wells, thus saving them millions of dollars!  All we want is a fair deal!  Please advise, Thank you.

Views: 5687

▶ Reply to This

Replies to This Discussion

Permalink Reply by john on March 16, 2013 at 6:35am

why the heck dont you call exco up, they havae offices in Pa.  I calll Chspk up , they are all nice people

you could Goggle exco and get their contact info in Pa

Permalink Reply by john on March 17, 2013 at 12:53pm

you really need to have your contract read .  some say same new contract price as original, others say the original company has the right to match a new offer.  its worth $200 or so to have it read and done right, if we have lerned anything in past 5 yrs it is to pay for professional help.

Permalink Reply by B kadri on March 18, 2013 at 3:17pm

You are right. To add to your unit size would do just what you say, it limits the amount of pads that would have to be built to place well heads. Look we have gone throught the very same thing and acually CHK wanted to double the size of our unit and like you not give any compensation.  It's not scare tatics it's greed tatics, the old it's in your "best intrest" "we can manditory pull you if we have to" well go ahead. Look everyone want's to get there piece of the pie everyone. Simply put your family doesn't care about the property they want the money and you'll get it some day but it might not be in the way of oil checks. You might be selling that property some day with limited restriction on it and that could have some real hidden wealth. We have no crystal ball, but one thing for sure they can promise you the moon but delevering it is another thing. They will be back, they will be back, they will be back. Remind the next buyer of your property what you, didn't do, that was sign a worthless addendum giving away the farm, that not only didn't give you a dime in your pocket, but also deminished the value for the next buyer.   

Permalink Reply by john on March 23, 2013 at 5:58am

Has anyone been following the ungag order by the courts with the HALLOWICH /Range case?

This was a dispute last year by homeowner that Range harmed their family by contaminating their well.

The Hallowich family was given $750,000 by Range and other drillers.

Had it not been for the un-gag order, I would not have realized that the Hallowich's signed an affidavit

that their 2 children were not affected and were well.   The fact that it is now public information that they signed has to be embarrassing  to  them.  .

Permalink Reply by Kathleen on March 23, 2013 at 6:37am
I guess those people found away to renegotiate. They admitted they had no medical problems except a sore throat and burning eyes (i have that right now) nor did their children, they bought 10 acres and say they didn't know a lease was on it or anything about the drilling coming, range sets up a pond and a compressor station and ruins the look and feel of their dream but they continue to build a house. Range offers them 200,000.00 for the property which wasn't too far off the assessed value but they list it for 500,000.00 than take range to court. Water showed signs of contamination but no one could say it wasn't their 1st. The state couldn't, no one could. How did they win this? This will now be used by many saying fracking harmed someone. No it didn't, it just ruined their view and property value. Range owned the land next door before these people even bought the land. Wow. Hmmmm. And they still get royalty's.
Permalink Reply by john on March 23, 2013 at 7:49am

what made it get un-gaged is that one of the Pittsb. papers wanted the entire story

and the judge ruled in favor of the paper.  I doubt if the Hallowich's wanted it relesed because it makes them look bad.  And you are correct, the anti's are using it that fracturing harms,

not reliziing that it makes the H's look bad, and Range is actually pleased it is released.

Permalink Reply by Jack Straw on March 23, 2013 at 8:02am

Looks like they were simply a nuisance that Range wanted to go away .... so Range gave them what was essentially pocket change for Range to disappear.

 

In my opinion the release of the settlement would seem to some to make the family look like a bunch of opportunistic blackmailers. How embarrassing for them.

 

Just my opinion,

                              JS 

 

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service