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 Philip Brutz on October 12, 2013 at 1:31pm

Who is hosting this meeting?

Permalink Reply by Tom on October 13, 2013 at 1:58am

What time is this meeting, and who is hosting it???  It might be good to sit in on it and see what they have to say.

Permalink Reply by Tom on October 14, 2013 at 2:03pm

The meeting on the 21st at Salt Fork is being put on by a company called JRM Consulting.  They are the same company who put together the large landowners group that signed with Rex to drill the Anderson wells.  Their website is here...ohioacres4u.com

Permalink Reply by Tom on October 17, 2013 at 5:13am

Today I just had a meeting with Joe Vavra, the attorney who was involved with the recent decision in Belmont county in favor of a family Vs: Oxford Oil.  Basically the judge said that the Oxford leases are no good.  They are what is known as a lease in perpetuity, basically a never ending lease which is illegal.  I would suggest anybody with an old Oxford lease that has not been modified as of yet speak with a lawyer immediately (a good one).  

What he told me was that Eclipse/Oxford are not going to let these old leases go, if you don't agree to amend the lease they will try to come in and drill a shallow well.  At which point you have the option to allow it, or file suit and take them to court to have the lease voided.  There is a very very good chance of winning if you are the land owner, although a lot still rests on the Ohio Court of Appeals, and possibly the Ohio Supreme Court, since the decisions against Oxford and Beck Energy are being appealed.

I don't want to sign with Eclipse, but I also don't want this stuff tied up in court for a year or more.  So the next time they contact me, I am going put most of my cards on the table and try to force them to sign a good and fair lease with me or we will be going to court.  I really don't want to chance missing out on a nice well while I'm tied up in court, but I also am stubborn as a mule and have very well defined principals and morals.  And just for the principal of them screwing myself and many other landowners over in the past, I will take them to court and fight it if it comes down to it.

Permalink Reply by searcherone on October 17, 2013 at 6:00am

I have confirmed that oral arguments are scheduled for Nov. 20 in the Beck Energy case at the Appeals Court.  There is also some indication that a decision could come before the end of the year.

Everyone who could be impacted by the decision needs to stay aware as to what is occurring.

And as Tom says speak with a good lawyer and talk to your neighbors. lol I am thinking that a year goes by pretty quickly.  Good luck to all of you.

Permalink Reply by evan on October 17, 2013 at 10:49am

These cases will all be appealed and probably decided on the gas companies side.  I've seen it in Guernsey County. The judge rules in favor of the landowner then the Ohio oil and gas commission got involved and he reversed his decision. You can count on this political stuff to help the oil and gas companies win their appeals

Permalink Reply by Tom on October 17, 2013 at 11:09am

A judge reversing his decision isn't the same thing as having a ruling from the court of appeals.  And even if the landowners do get an unfavorable ruling, I hope they pursue it all the way to the Ohio Supreme Court.  I think there are too many rulings going against the oil and gas companies in the lower courts to have them overturned.  Heck, even the case against Hess Energy went in favor of the landowner and that was in a federal court, not some county judge.

Permalink Reply by evan on October 17, 2013 at 11:35am

I agree with you. What I was trying to say is the judge got pressure from the oil and gas commission and Changed his mind and I'm sure that would happen in other courts. Gas companies have ALOT of political pull

Permalink Reply by Finnbear on October 19, 2013 at 10:46am

Or, as my dad would say, "Money talks and BS walks".

Permalink Reply by Den on December 14, 2013 at 4:06pm

There are two different Beck cases.  One is the city of Munroe Falls against Beck regarding if local permits out trumpts state permits.  Beck likely has won that one, but that has nothing to do with the Monroe County case where the Judge ruled the Beck leases to be against state law and therefore null and void.  This is in appeals court, so far against Beck. The problem is the Beck leases are perpetual leases, there is no end to them, which is not legal.

And there's another Beck lawsuit.  Beck is suing the lawyers involved in the Monroe County case, saying they are interfering with his business, or something like that.

Permalink Reply by Tom on December 13, 2013 at 1:48pm

Things are starting to get more serious for my situation now, with only 2 months to go on my Eclipse/Oxford lease.  The other day I was visited by a gentleman who works for Eclipse.  Now they are sending in the big dogs, and not the used car salesmen from Holland Services.  They must want my small parcel in a bad way if they are willing to send a company man out to talk to me.  I expect to hear back from him in a few days to a week with yet another offer.  From the conversation I don't expect them to come up to the 18-20% Gross that I want, but I do expect them to offer in the neighborhood of 15% or so.

Funny thing is, they say they are getting a pool together and want my lease...but they don't have any leased property around me.  On the other hand, Rex is starting the pad for the next set of wells just to the north of the J Anderson wells...Could they be trying to get my lease amended so they can sell it to Rex????  Only time will tell.  In two months I can do as I please, could I be shooting myself in the foot, time will tell.  After reading the discussion about the initial production from the J Anderson wells, things are looking good around my area.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on December 13, 2013 at 5:19pm

"Could they be trying to get my lease amended so they can sell it to Rex????"

Tom Stabley would eat flaming dog $hit before he dealt with Eclipse.  The relationship there is one of pure, unadulterated hate.

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