Scare tactics or fact? Is Eclipse right?

Just received a second call from eclipse. The first call 2 months ago was to notify me that eclipse would be calling me with a new proposal on my existing lease with Oxford/Eclipse. Here is the scenario. 156 acres, Millwood twp., Guernsey co. Signed with Oxford 4 1/2 years ago, for nothing upfront, 12.5 % net.

My call today was threatening to say the least. "We are offering you 12.5% gross, no bonus, and that if we fail to re sign with them, we will not allow our lease to go by the wayside. My boss has paid too much money for this acquisition to let that happen, and we will put a shallow well on your property to lock in your lease  and you will receive nothing." I have to say, we have been anticipating the new tentative lease we signed 2 years ago with Turner Oil, and this call today has not been a mood elevator. Can anyone suggest what we should do now. Our lease will expire in March.

I read from 1 blogger, Tom, that he told them to come back with a different offer, and they did. I know it's just business, but I take affront with this kind of forceful tactic, especially with Oxford doing what they did, (meager 10.00 / acre/yr./ 5 yrs.).  I feel like I am going through the wringer 1 more time.

Any direction guys would be greatly appreciated.

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Permalink Reply by Charles Randolph on December 8, 2013 at 2:43am

A post earlier this year by "Larry Livengood" recommends this law firm for landowners. Often, a SW PA law firm will have at least one attorney on their staff who is licensed in your state as well. You could at least ask them: http://www.washingtonpalawyer.com/

Permalink Reply by skittles on October 5, 2013 at 10:32am

a relative in wills township claims he just signed a renewal lease with eclipse for $1000 an acre, and 20%. i would have to see the lease to believe that and i havent. the eclipse landman that keeps trying to get my son's half acre in Old Washington is offering , $3000 bonus and 20%.  the clencher is: there is a half page of deductions and enhancements that will eat up any royality he might get. this landman told me today he will miss out . he is the only one who has not signed. not true  i talked to his neighbor immediately afterward and he has not signed either.

 

Permalink Reply by Olive Sue on October 5, 2013 at 12:55pm

There was an old saying "Don't shoot the messenger" but maybe the messenger is the is the dirty bird here.  I find it hard to believe a professional company would want to be represented this way.  You generally catch more flies with honey rather than vinegar!!!!

Permalink Reply by skittles on October 6, 2013 at 3:40am
This land man can't even look you in the eye when he is lying. He keeps telling me I'm the only one who brings up that question. This is the only lease I've seen that has all these crazy deductions. He told my son to just take the bonus and don't worry about the royalties, " you'r not going to get any". He said. Does anyone know who else is leasing in/around Old Washington, and contact info?. Would appreciate the info.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on October 10, 2013 at 3:15pm

"This land man can't even look you in the eye when he is lying."

He needs better training.

Permalink Reply by Ken Podlaszewski on October 10, 2013 at 4:59am

It doesn't matter whether the landman or anyone else involved in the deal is the most honest human on earth or a deceptive snake. It doesn't matter what anyone says. What does matter is what is in writing.  Don't even talk to him if you don't like his tactics; just tell him to send it in writing. Better yet, get your attorney lined up and tell him to "contact my attorney".  It's not about liking (or not liking) the landman or their tactics. It's business. It's about getting a deal you will agree to that they can live with. A good attorney should know what's in the current lease and when to tell them or not tell them to "go pound salt" and when to tell you that they're offering a good deal. It is also likely that they will drop any "tactics" when they have to deal with your attorney rather than with you. With 156 acres involved, the amount of money at stake warrants using a good gas lease attorney. You can bet they have a darn good one!

Just my opinion - worth no more than what I charge for it :)

Permalink Reply by Dave on October 10, 2013 at 5:19am

Hold tight.  Your property is located in one of the best locations for oil/gas.  They are not offering you much more than what you have today,  but will lock you in for another 5 years.   You may find yourself in the same position again 5 years from now.   I can tell by the tone of your post that you are not comfortable with signing this "new" offer.  Listen to your instincts.   Even if they put a shallow well in (which they won't),  you property will be ultimatley be produced by a horizontal deep well.   Either way you will get 12.5%.    This is your opportunity to get out from the lease you are in,  and negotiate for what is fair.   Tell them if they are interested in keeping your property under lease to come back with a reasonable and fair market based offer because over the past 4.5 yrs the area has been proven and can be released very easily.

If they wanted to put a shallow well on your property to hold you,  they would have done it already without trying to get you to sign a new lease.

Things will work out.

Permalink Reply by Mark Allen on October 10, 2013 at 11:28am

There is a landowner/mineral owner meeting scheduled for the 21st at Salt fork Lodge.

The legal team involved could possible help out.  I agree with the posts about a great spot, this is part of the core.

 

If it is not in writing ,it does not matter what was said.

A OIL AND GAS ATTORNEY WITH EXPERIENCE IS KEY.

Permalink Reply by Olive Sue on October 11, 2013 at 1:48am

Hopefully they are all busy seeing to drilling wells!!!!!!

Permalink Reply by Anastasia on October 11, 2013 at 4:10am

Maybe it's because you trash them on the blog?  Can't imagine why they wouldn't want to talk to you. 

Permalink Reply by evan on October 13, 2013 at 12:00pm

Ricky talked to a company testing my water for Eclipse this week.  I'm north of Quaker and in a Chesapeake unit but Eclipse is putting In 3 well pads all around me but I think.  Chesapeake will do their drilling for them . Keep your hopes up its getting crazy around here.  

Permalink Reply by Tom on October 11, 2013 at 2:56am

airman,

If they insist on pressuring you too much, tell them to let you know when they intend to bring in the rig and drill.  You are in the same boat as I am.  But remember this.  Even if they do drill a shallow well, yes it will lock in your current lease, but they still CANNOT use your property for a deep well because of the pooling provision.  And that's the part they are wanting you to change.  Let them drill a shallow well, then in a year or two when they or some other company comes to you and REALLY wants your land for a deep well, then you can get the royalty you want on the deep well.  If they are coming to you, you hold all the cards because that means they want something.

They did come back with a different offer for my piece of land, $1000/acre payable yearly for 10 years.  NOT $10,000/acre up front, but every year.  And no change in the royalty % either.  I am going to tell them once again than I am not interested and to come up with a much better royalty, and make the lease money a lump sum to let me know they are serious.  If he tries the bullying and threats, I'm simply going to tell them to let me know when they intend to move the rig in and I'll tell them where they can put the well (that is in the lease also).  Even if they do bump up the royalty for me, I'm still not going to sign with them.  I don't like their tactics, so I am just biding my time for the next 4 months.

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