Replies to This Discussion

Permalink Reply by George Donovan on December 8, 2014 at 11:28am

Those are new well permits. If you click on the Blue writing on my first post it will map it and also give you the API number. Its a Nimby site, but good free info. I haven't figured out the target formation yet.

Permalink Reply by George Donovan on December 8, 2014 at 4:08pm

Yes, Looks like  Baker 21H is Utica or deeper. TVD12,200'  Lateral 5600'  MD19,000'

Permalink Reply by Jeff White on December 4, 2014 at 11:03am

  This is all new to me. I was looking over some lease papers that my in-laws signed a few years ago with SWEPI and I was curious about lease extensions. The extension of term payment is listed as $2k/acre and I know that a vertical well was drilled on the unit. Does the existence of this well mean that it is "held by production" and a way of getting around the extension terms? An attorney told them, that for the couple of acres involved, it wasn't really worth paying for legal advice and to just consider it free money.

   I am just looking for a little clarification. Thanks. 

Permalink Reply by Thomas Lilli on December 4, 2014 at 11:59am

My understanding is the lease terms for extenstion are applicable if there is no activity at the end of the first term. The time limits are only applicable until a well is drilled within the unit you might be included in. In that case, the agreement is in force in perpetuity until the production has been completed. In other words, to my understanding, once production starts, if it takes fifty years, you will be bound by the terms set forth in the original lease. Now, what I'm not clear about is holding by production. Some say a stake in the ground is holding by production, others have more realistic definitions. I just don't know since I'm not impacted by that at this moment.

Now, each lease may have addendums that list particular constraints but, this is my basic understanding.

Permalink Reply by Frank Walker on December 8, 2014 at 8:13am

Thomas good post!!  What it takes to HBP is determined by each individual Lessor's lease.  To learn what is required, a landowner must read his or her lease.  Also, FWIW:

My own lease, signed a few years ago, had very meager requirements to hold my land by production (HBP).  I knew about this when I signed and those terms met with my approval.  I realize for others my terms might have been considered insufficiently stringent or demanding.  But my eyes were open, the terms were what I wanted, and nobody cheated me.

Of course that was then and this is now:

Regardless the ease with which they could have done so, my gasco chose not to hold onto (a portion of) my land.  This was owing, I'm pretty sure, to my high royalty fraction along with the current and ongoing natural gas glut.     

What can I tell you?  The Lord giveth and The Lord taketh away.  I certainly have neither complaint nor basis for complaint.  Some stuff just "is what it is".

Permalink Reply by Jim Jones on December 9, 2014 at 3:36pm

  

I received (2) letters from Long Consulting Group.
Each letter was from a different Independent Landman wanting to acquire a new least on my Shippen Twp.parcel which is under contract until July 2015 w/Swepi. I did not respond to either letter. A third Independen Landman Philip Stallard from Clarks Summit, Pa. Showed up at my home in Bucks County,Pa. and left his card in my door. I can’t believe they would travel over four hours away to lease my parcel of 4-acres. My neighbors said they only received one letter from Long Consulting Group and did not respond. Is this the standard protocol?

Permalink Reply by Thomas Lilli on December 9, 2014 at 4:25pm

Must have something they want. No?

Permalink Reply by Kevin Howe on December 10, 2014 at 2:12am

A lot of Tioga County land is owned by people from downstate.  A landman is down there to lease up as much as he can in the areas of Tioga County they are interested in.    He didn't drive down there just for you.   Why not respond and see what they are offering?

Permalink Reply by Ann Ticopa on December 10, 2014 at 5:11am

What is the bonus per acre $$ in the renewal clause of your current lease?  SWEPI does sometimes try to negotiate a smaller amount. 

Permalink Reply by Jim Jones on December 10, 2014 at 5:30am

   No renewal dollar amount clause on current lease.

Permalink Reply by Ann Ticopa on December 10, 2014 at 6:53am

What does the lease say about renewal (or termination)?   (For example, you might be required to notify the lease holder and give the company a grace period.)

Once you have determined what your options are under the terms of the current lease,   then find out what SWEPI is offering (through Long). 

Permalink Reply by Jim Jones on December 10, 2014 at 8:14am

   Good information!

   Thanks, Ann 

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