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Permalink Reply by Kevin Senich on April 14, 2013 at 11:22am

No one can give an authoritative answer based on the question as you have stated it and the facts provided.  "Re-newed" may not be the term you mean to use.  The lessee might have extended the primary term of the lease by taking out a permit or some other action that provides for such extension under the lease.  I would recommend you take your lease to an attorney.  Otherwise you will have to attach your lease and provide facts specific to the operation of the lease.

 

 

 

 

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Permalink Reply by wyalusing jim on April 14, 2013 at 11:51am

i think she means that her lessee has taken its' option under the terms of her lease for a second primary term. in other words paid a second bonus for an additional primary term. that would be quite common.

what wouldn't be all that common would be another option for a third primary term, though it would certainly be possible. that would be in the terms of your lease theresa, and only you have access to that. we here, can only speculate.

i would also like to point out to you, that if any of the terms under which your lease might be extended into its' secondary term are met, i.e. unitization, your lease will continue, without further bonus payments, for potentially a very long time. you would likely however receive royalty payments at some point which could be way cooler than the bonus. depending.

wj

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Permalink Reply by Theresa Kolk on April 14, 2013 at 1:44pm

thanks, guys...I'm kind of new to all this....I live in the Liberty area and didn't think anything would be done on or near me since so much time has passed...and yes, WJ, I was paid a second bonus to extend the primary term for another 5 years...i plan on taking my lease to a lawyer as one of the permits issued recently is for an area just under 2 miles from me and another is just a half mile away. Thanks for the info and advice, T

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Permalink Reply by wyalusing jim on April 14, 2013 at 1:54pm

just curious theresa, but why the lawyer now?

if you read your lease, it will state whether they can renew you for a third primary term.

if they commence operations close enough to you that you can be unitized, it doesnt matter whether they can do a 3rd primary term or not, you will be in the secondary term of the lease.

or maybe there's another issue that i'm not seeing.

are you in liberty pa?

wj

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Permalink Reply by Theresa Kolk on April 14, 2013 at 10:59pm

   Hey, WJ, I didn't get a lawyer first time around and hadn't heard the words Marcellus shale yet so they got me on one of those "good for them, not for me" leases. I try to understand all the stuff in there, but just can't. So I might be too late smart, but I try not to make the same mistakes twice.

   Yes, I'm in Liberty, Pa., and haven't been put in a unit yet. I'm trying to figure out how long it takes between the permits and the commencement of a unit. If you have any advice or hear anything you think I should know, my ears are open. Thanks, Theresa

   PS  The two permits closest to me were issued in Oct '12 and March of this year. Thanks again

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Permalink Reply by Oliver Perry on April 15, 2013 at 12:29am

Theresa,

I think the permits are good for two years, sometimes they start working the site soon after they are issued and sometimes not. I know of a permit that was issued in Oct. 2011, and there hasn't been any activity at the site yet.

You aren't specific as to the type of permits you are referring to. The storm water permits are usually the first to be issued, those are required before any construction of the pad can take place. Sometimes waste management permits are also needed, among others. The drill & operate well permits are the last to be issued. 

The site that is two miles away is too far for you to be included in. The site 1/2 mile away could include you, especially if your property is northwest or southeast of that site. Those are the directions these horizontal wells are drilled in. Good luck to you.

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Permalink Reply by wyalusing jim on April 15, 2013 at 1:32am

there really is no definitive timeline relationship between the issuance of permits and the spud dates. and again, between the spud date and your first royalty check. there are just too many variables in the interims.

your best shot at figuring out when production will commence is to find out when the first lease in your unit will expire. they want to hold all acreage by production, in order to do that they must meet the terms of the lease.if you signed early, it may be your lease, but if you signed later, the wait will be shorter.

theresa, i suggest you look at wayne millers' bradford county units map on the bradford county forum. even if there is no unit for you on that map, you can see what blank space that your land falls into and interpolate. he does locate the permits even before the units are declared too.

communication is the key now. much is known by your neighbors. i suggest keeping in touch with folks within a couple of miles of you for the best info on production numbers, timelines and royalty issues.

there's a few of us from southeast bradco here on this forum,some of us have been in production for a while now. if there's anything you'd like to know, just ask.

also, there's a group of us both from bradco and other areas of the marcellus that get together at the marie antoinette once a year or so to share experiences and information in person. it's a very informative and friendly get together, we'd love to have you come and learn with us.

wj

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Permalink Reply by Theresa Kolk on April 16, 2013 at 10:50pm

   Have to say thanks again for all the advice, info, etc. ...tryin to look into all of it...WJ, thanks for the invite, just let me know when. I'm not familiar with it, is it a diner or restaurant? ...again, thanx to everyone, Theresa

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Permalink Reply by wyalusing jim on April 17, 2013 at 1:27am

it's actually a bar theresa, but we don't go there to drink. the bar has a fair sized parking lot, with stone walls and parapits and seats. from the wall, there is a magnificent view of the susquehanna valley below and french azylum.

the bar also has food, and it's not too bad, but we get together to talk mostly and exchange what we've learned over the past year.

it's become something of a randomly scheduled annual event around here.

the overlook is a couple of miles west of wyalusing on rt. 6. heading toward wyalusing from towanda, as you're climbing the hill from the rummerfield flats, close to the top of the hill and before the 409 junction, it will be on the right.

it has a sign and the parking lot/overlook is right off the road.

seeya there!

wj

Permalink Reply by Theresa Kolk on April 17, 2013 at 10:32pm

   Thanks WJ, let me know when...Theresa