Replies to This Discussion

Permalink Reply by Lease Expert on September 17, 2010 at 8:43pm

If you dont have it, they can HBP your property with a shallow well (hold by production) in other words they do not have to drill a Marcellus well to hold your property for ever.

Permalink Reply by cindee mcdanel on September 17, 2010 at 9:36pm

Is this considered an extension? If you signed a 5 year lease, and they held your property by production --would a new lease be signed or would it continue as it did orginally? Would we still make royalties if a new one wasn't signed? I don't quite understand.

Permalink Reply by Lease Expert on September 17, 2010 at 9:42pm

Cindee,

Its not really an extension it just allows them to be able to drill a shallow well on the property. Once a shallow well (or any well) is drilled you begin receiving royalties. Once you begin making royalties your "lease" remains in affect until the well is plugged many many many years later in some cases.

If you have depth severance they only are able to drill your Marcellus so in effect to hold the land beyond the lease they have to drill a Marcellus well, which is what you want.

Some depth severance clauses are a joke, some leases have many other traps to hold a lease beyond the term.

Good luck! hope this helps.

Permalink Reply by Kathy M on September 18, 2010 at 9:29am

what township are you in and what company are you signing with? Haven't seen any recent contracts have that look at butler deeds on-line and you can read them

Permalink Reply by cindee mcdanel on September 18, 2010 at 10:03am

I am in Penn Twsp. Company is with Rex. I would like to look at the Butler deeds and read them. What is that web site?

Permalink Reply by Kathy M on September 18, 2010 at 10:14pm

http://www.co.butler.pa.us/recorder/ you can put in R E Gas or dale properties which is Chesapeake or if you know someones name that has a lease all this under simple search.
what is Rex offering for the bonus ? % royalties ? terms ?

Permalink Reply by cindee mcdanel on September 20, 2010 at 9:46pm

Rex is now offering $1,250 for nondevelopment leases and $2,000 for a development lease both at 15%. Rex's signing bonus was as high as $3000 and seem to be going the other way. They are the dominant company in this area at this time! Chesapeake is not buying in Butler County as I was told. That is for a 5 year lease. I looked on that web site, but you can only see 1 page even if there are 4 pages. You can't get all the pages to come up to read a complete lease. Any suggestions on how to read all the pages of a document?

Permalink Reply by Kathy M on September 21, 2010 at 1:27am

you can read all pages on the web site. Hit the forward arrows.

Permalink Reply by Alan Coogan on September 23, 2010 at 8:27am

Dear Mike

How do I get in touch with your group. The acres we have are in Butler and Armstrong (Hovey twp).

Alan Coogan (coogan20001@hotmail.com)

Thanks