Revised lease

Antero contacted us to sign a revised lease 2 weeks back. We originally signed with eclipse ,who sold to antero and now just 2 weeks from drilling the laterals on the Mahoney unit they are offering a signing bonus to sign this lease.....anyone else get approcached? It all seems fishy to me......Can anyone help with a name of a good G&O attorney ?

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Permalink Reply by Mary Schultz Price on July 9, 2014 at 10:36am
Thank you all for all the advise....I really appreciate you time responding
Permalink Reply by BIG on July 10, 2014 at 1:45pm

Mary,

Did they say what was wrong with the lease and what needed changed? 

Permalink Reply by Mary Schultz Price on July 10, 2014 at 3:19pm
They told my husband is was about the acreage in the unit....the pad is two thirds on our land but yet we only have 7 of our 20 acreages included in the unit....something's not right you know?
Permalink Reply by The Hiker on July 11, 2014 at 5:55am

Antero purchased close to 4000 acres of old Beck leases in Noble County from XTO, who had originally purchased them from Beck.  They (Antero) paid these landowners $3000/acre to correct a defect similar to the one you describe.  Eclipse has paid numerous landowners $1500/acre and bumped up their royalty rate to 15% from the original 12.5% in return for an addendum to increase the pooling size.  I know Bricker and Eckler in Columbus have handled this negotiation between landowners and Eclipse several times.   These are examples of what's been going on, but each negotiation is a blank piece of paper and you may get more.  Good luck.

Permalink Reply by Jack Straw on July 13, 2014 at 5:04am

My personal thoughts:

You have a relatively small 20 acre parcel.

They wish to place the majority of what is likely to be a large pad on your property; but they want to include only 7 acres within the unit.

I agree, something is not right.

In so much as you are expected to 'bear the burden' of the pad; your entire 20 acres lies in the 'shadow' of that pad; that should be taken into consideration when surface damages are calculated.

In your position, I would argue strenuously that all 20 acres should be within the unit; there is something called 'fair'.

Good luck in your dealings.

All IMHO,

                 JS

Permalink Reply by The Hiker on July 13, 2014 at 9:26am

Mary:   I looked up the Mahoney unit, and the plat map clearly shows your situation.   A few observations:  IMHO, there will be a Mahoney 3H and 4H located to the east of the 1H and 2H, and this unit will cover a few more of your acres.   It appears that the unit map for the Mahoney was drawn to avoid the property owned by Brian King, and this is why you got shorted on acreage in the 1H and 2H.   Most likely, there will be more units formed to the NE and drilled from the Price pad (the "KING" unit or the "PRICE" unit, etc...) and these will cover the rest of your property.   I'll betcha that Antero wants to amend your lease to allow the addition of another unit to the east, and that will involve expanding your pooling size.  Nothing wrong with that in itself, I would just take the opportunity now to ask for a little something in return for this addendum.  Like $1500/acre and a bump in your royalty to 15%.....like other Eclipse leaseholders got.

Permalink Reply by Mary Schultz Price on July 13, 2014 at 11:03pm

Hiker,how were you able to find the plant map of the Mahoney unit? They showed it to me but would not let me keep it

Permalink Reply by evan on July 13, 2014 at 11:50pm

It should be on ODNR s website

Permalink Reply by Philip Thackray on July 13, 2014 at 11:55pm

Mary,

here

and

here

and

here

Phil

Permalink Reply by Mary Schultz Price on July 14, 2014 at 2:45pm
Thank you Phillip....what a great help! We have tried getting on tha site and just get lost.
Permalink Reply by Finnbear on July 14, 2014 at 9:48am

What are you giving up in the revised lease? What are they changing? How much are they offering for the signing bonus and does that cover what you're giving up with the "revised" lease?

Permalink Reply by Mary Schultz Price on July 14, 2014 at 2:43pm
Not giving up but we did fax it to an attorney to look at seeing I can't make heads or tails of the lingo....they are offering 1000.00 an acre to sign....don't want to get screwed ya know? We have been lied to too many times to trust their word :)

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