Beware of all the gas companies!

I signed two lease's back in 2011 with Gulfport Energy on 80 acres that I own in Belmont County, Ohio. Let me start by saying don't believe anything that any of the land men tell you, the are working for the gas companies and their own benefit not yours period. While I was negotiating my lease with several companies at the time in 2011. I clearly explained to them that any lease I would sign would require a Pugh clause, and that I would not except any lease that required me to pay any of the cost associated with the production or marketing of the finished product from any wells drilled onto my property. I ultimately ended up signing with Gulfport Energy because of the higher bonus payment and higher royalty percent, and the land man assured me the Pugh clause and the deduction clause weren't a problem, that a lot of people were requesting it. Well the land man was lying through his teeth after receiving my first royalty check and statement there were $14,574.11 in total deductions. Beware of any lease that includes the language below.

 

"All oil, gas or other proceeds accruing to Lessor under this lease or by state law shall be without monetary deduction, directly or indirectly, for the cost of producing, gathering, storing, separating, treating, dehydrating, compressing, processing, transporting, and marketing the oil, gas and other proceeds produced hereunder to transform the product into marketable form; however, any such cost which result in enhancing the value of the marketable oil, gas or other products to receive a better price may be deducted from Lessor’s share of production so long as they are based on Lessee’s actual cost of such enhancements.  However, in no event shall Lessor receive a price that is less than, or more than, the price received by Lessee."

 

It was explained to me that this was exactly what I wanted and that the second part of this clause only meant if they did any advertising to enhance the selling price of the finished product I would have some associated cost from that. Well I have since found out that this is the language that the big oil companies have adopted to lead land owners to believe that they are getting a no expense deducted clause in their lease. If you find this language in your current lease be assured be ready to pay every single cost that is associated with bringing the product to market. Don't sign it! Ask clearly for a no production cost clause and have it reviewed by a gas royalty attorney.

Views: 36800

▶ Reply to This

Replies to This Discussion

Permalink Reply by Darlene Newton on November 11, 2013 at 12:40am

Yep all I know is it is not worth it to work hard.  They can go "F" themselves and I will suck off the Government, that is what they are making millions and millions of Americans do!  I would refuse to go in the armed services, reason are own Government kills our troops!    Why are all the Seals dead that killed Osama Bin Laden!  Bengazi? We sacrifice OUR children for the sake of these EVIL POLITICIANS and BIG GAS and Oil Companies and as an American I am so GD sick of it!  When are ALL Americans going to say they have had it?  When?

I absolutely hate these gas Companies like I hate our Politicins1  The scum in office now is disgusting, Obama, Yaw, Corbett and the many many more can all go suck an egg! 

Why work what is the purpose tell me? When are Americans gonna asy they are fed uo?  When?

Permalink Reply by RB on December 31, 2013 at 4:38am

Kevin,

Where can I read about that new tax?  OH or all states?

What was the gross amount on the check which they took 14k in fees?

Thanks.

RB

Permalink Reply by NY Gas Rights on January 4, 2014 at 6:44pm

Kevin, any dollar you get was buried in the earth and you never had the ability to get it out. There is NOTHING in any law or deduction that can cause you to pay 70% of,  any dollar in royalties. NONE. Learn to do the math. Start with one dollar, it doesn't matter what the deductions are, so from your dollar, you claim 50% tax, NOT AT ALL POSSIBLE, try a new lie.......

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on March 29, 2014 at 4:43am

Kevin,

    Run your Fiance's lease past the folks at Rokisky & Associates who are in WV but are licensed in PA, OH, and WV, and see what they can do with your deep well lease.

I seem to remember that there is an issue with the old type wells that O&G companies will try and have you update to a new lease so they can continue to steal from you.

Good Luck!

Permalink Reply by Joseph-Ohio on November 11, 2013 at 12:50am
Darlene,

Posting to thank you for sharing your story.

We think that these kind of very negative leasing details / occurrences often go unnoticed by landowners processing offers mostly concentrating on the promises of great wealth.

Hope you can work out a solution to your dilemma and thereby establish fair precedent for all landowners.

Good luck and thank you again.

J-O
Permalink Reply by Darlene Newton on November 11, 2013 at 1:08am

I think it is obvious there is nothing I can do!  Until souls decide to do what is right nothing will change1  The Gas Campaniles and our Politicians will have all of this slapped right back in their faces!  It may take time but it will happen and I have no PITY for either of them!

The best part Kevin if  that they fail to mention is  we landowners are still paying back taxes on all that money!  We were put in a higher tax bracket so are completely screwed!  if anyone dares argue with me I will pull out my tax papers! out and rub them in their faces!  I want people to know I totally gained nothing except the unfortunate ability to see how EVIL people with money are!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Permalink Reply by Darlene Newton on November 11, 2013 at 1:26am

I never looked at it as great wealth Joe from Ohio.  I saw it as an opportunity for a very poor county where jobs would be there for the people!!!!!!!!!!!!!!!!!!!!!!!!!!!!  I did not sign up for this and I did not sign up to destroy my County, my neighbors and my friends! 

Just so you know I rented my properties to very good Oklahoman's and others because they could find no homes for less than 6000.0o a month!  I did not screw them like I continually get!

I also did not complain and make a big deal that I have water bubbles in my water, still, and that we have geysers in the lake where I live! The readings in our well were as high as could be and ready to blow if I took a gaseous crap in the toilet!  The professional water tester that tested are well said my husband and I could blow up the readings were so high!  He pretty much guaranteed the methane was in our water due to the  drilling!

Chesapeake will have to pay when people figure out what they have destroyed in Bradford County Pa!   it was one of the most beautiful areas in Pennsylvania but not now! 

You tell me what to do John?  Cause there ain't no way I can fight them!  Oh and I got the proof!

Darlene

Permalink Reply by Darlene Newton on November 11, 2013 at 1:30am

You would think making the people of Bradford County happy would be much easier then creating a very hateful situation like they have created!  It really sickens me!

Permalink Reply by Joe Szymanowicz on November 11, 2013 at 10:42am

Darlene, 65 thousand dollars?

Permalink Reply by Darlene Newton on November 11, 2013 at 12:06pm

We were one of the first wells they went back over 5 years from the time they tapped the well!  Yep had to pay all that money back for ENHANCEMENTS and Political Taxes that the landowners were not supposed to pay but because OUR Politicians are  SCUMBAGS and CLARIFY who pays the tax!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Permalink Reply by JREwing on November 11, 2013 at 1:42pm
In 72 hours you've become the new poster child for the most ignorant, narcissistic, whining, overconfident, pathetic, blame everyone but yourself, land owner on GMS. Congratulations. The truth of the matter is, you totally f**ked up by not hiring a competent attorney to advise you before you signed your awful lease and you just can't face the music. Must suck to be you. Now, put your big girl pants on and deal with the clusterf**k of a lease you signed because you thought you were smart enough to sign it on your own.

You sound like a genuinely nice person and I'm sorry you had to suffer this difficult lesson, but there is no one to blame but yourself. A good deal of this country's problems are caused by people not willing to accept responsibility for their own actions.
Permalink Reply by Greg K on November 11, 2013 at 5:20pm

i disagree jr

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service