Eclipse shallow drilling to extend leases

I have read several posts where folks have been "negotiating" extensions with Eclipse where old leases are fixing to expire over the next 4 to 6 months. Eclipse is stating they will drill a shallow well to hold lease if property owner does not agree to the extension terms (which are terrible). has anyone taken them to the end and actually have them drill a well?

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Permalink Reply by Gusher on November 9, 2013 at 7:52pm

this is their clause

6. Cost Free Royalty. The following provision is hereby added to and made a part

of the Oil and Gas Lease:

Cost Free Royalty. It is agreed between the Lessor and Lessee that,

notwithstanding any language herein to the contrary, all royalties for oil, gas or

other production accruing to the Lessor under this Lease shall be paid without

deduction, directly or indirectly, for the costs or expenses of Lessee relating to

producing, gathering, storing, separating, treating, dehydrating, compressing,

processing, transporting, and marketing the oil, gas and other products produced

hereunder.

Permalink Reply by The Hiker on November 9, 2013 at 9:03pm

Hmmmm......

What about sale of products to an affiliate?

Permalink Reply by Gusher on November 9, 2013 at 10:48pm

agree, not covered.

Permalink Reply by Gusher on November 19, 2013 at 8:38pm

have they got back with  your neighbor yet and is he one that has a lease expiring with t hem soon?

Permalink Reply by Gusher on November 9, 2013 at 7:54am
They will never be able to be part of a horizontal well unless you sign adendums, so even if they drill you would still have negotiating power
Permalink Reply by searcherone on November 9, 2013 at 8:36am

Gusher, that is a very good thing if they still have the negotiating power.  The question is will the landowner have the courage and guts to play the negotiating game or will the landman's words overtake them?     I am cheering on the SE Ohio landowners, don't cave in.  .

Permalink Reply by Gusher on November 9, 2013 at 9:26am
Well I am taking them to the end and telling them they got two choices, negotiate a fair deal now or drill their hole and I will never sign an extension
Permalink Reply by F Donia on November 10, 2013 at 1:52pm

Has this article been brought to this thread's attention:

http://www.farmanddairy.com/news/belmont-county-judge-rules-favor-l...

Permalink Reply by Philip Brutz on November 29, 2013 at 10:43am
Permalink Reply by evan on November 29, 2013 at 11:39am

That is right next to me. Northern Millwood township right off of Putney Ridge road.  You said their shallow horizontal permits? They tested my water for this particular well back in September. I'm sure it will end up being a regular Utica well  I do know their going southeast with these legs towards Salesville

Permalink Reply by Oliver Perry on November 29, 2013 at 11:40am

The target formation is the Point Pleasant. Is that considered a shallow well?

Permalink Reply by Philip Brutz on November 29, 2013 at 11:42am

My mistake.  Point Pleasant is deep.

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