Marion Co. WV lease expired

My 5 year lease in the Paw Paw district held by XTO has now expired without them extending for the agreed upon 3 yrs. Seems a bit odd to me that they wouldn't hold onto it for the additional 3 yrs. This is a non-producing site, in which I own both mineral and surface rights on 41.815 acres.

I was a bit disappointed at first, but now I'm looking at the positive sides. This experience has only made me wiser to the process and industry. But, I have so much to learn going forward. I have the power of time on my hands, as I first leased at age 26, I'm 31 now. I also have 2 beautiful little girls who can pick up where I leave off.

My initial thoughts were to start calling other active companies in my area, but at 2nd thought I think it could benefit me more to just forget about it for awhile and be free again. I definitely need to further educate myself on my area and get in touch with nearby mineral owners whom were included in my block.

Would you recommend taking a step back, or driving forward by contacting active companies in my area?

I've heard WV has a serious lack of pipeline problem, which is soon to be addressed. This should in turn spark interst again on my tract.

Thanks for all your expertise and help on the subject.

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Permalink Reply by Barry D on July 31, 2015 at 4:40pm

You should send a letter informing them that the lease has expired and you are requesting a release.

The lease is not technically expired unless you notify them.

Include all pertinent info about your property, District County, Tax Parcel Number, and lease number if there is one.

Be sure to send it registered / return receipt.

Make sure you send it to the address for communications listed in the lease.

You may be surprised that they may contact you and extend the lease.

You may want to contact an oil and gas attorney to help with this process. This is just my opinion.

Permalink Reply by wvlapua on July 31, 2015 at 11:53pm
Great info Barry D. I will proceed with your recommendations.

I did call them to ask if they had any intention on extending. Their response was, if they were going to extend, I would have received a payment in June. Said the pipeline may be too far from the proposed well pad.
Permalink Reply by Philip Thackray on August 1, 2015 at 12:57am

wvlapua,

When I saw your post I got to wondering where is Paw Paw, WV.  Goggling that led me to the story of the Paw Paw Tunnel.  Very Interesting.  I don't think I'd want to drive barge mules through that tunnel!

Phil

Permalink Reply by wvlapua on August 1, 2015 at 6:21am
My land is actually in Barrackville, WV. XTO classified it as paw paw. I suppose bc the closest stream is named paw paw. I don't know anything about the Tunnel, I will have to research it.
Permalink Reply by Philip Thackray on August 1, 2015 at 6:43am

There is a city named Paw Paw and that is where I thought that you were located.  Not close to Barrackville.  Sorry about that.

Phil

Permalink Reply by Lynn mudder on August 1, 2015 at 6:29am
My one suggestion would be to separate your depths. Only lease Marcellus first, for example, then if later they want the Utica, you can lease that. I believe you may have several layers that you, or your children, may be able to lease at different times.
Permalink Reply by wvlapua on August 1, 2015 at 9:04am
Great suggestion Lynn, I will definitely work that into any future contract negotiations. Utica is the future in my area.
Permalink Reply by Trapper on August 1, 2015 at 9:39am
Good points to consider! Many of us may wind up in this situation in the near future , free to form landowner groups. Next time around , though , we will be empowered with knowledge not had before!
The gascos may rue the day they let all this land slip through their fingers! ;-)
Permalink Reply by wvlapua on August 1, 2015 at 2:18pm
I agree..landowners must unite and stick together. 5 yrs ago, I had no clue. Going forward, I know more of what to expect and the gascos tactics. It's not greed, more so landowners not getting ripped off.
Permalink Reply by wandering juju on August 3, 2015 at 6:45am

Excellent information from Barry regarding making sure you are not still held.. but like many in the Ohio Valley who have been influenced by bad information.. mostly from Lawyers and Land Group MANAGERS... who always take a cut and get in the way...   YOU want to be on the map of recognition immediately.. As the GasCo's.. as someone else called them.. make decisions on where to drill.. it is based on blocks already formed in areas of interest..  and just because you remain UNLEASED.. doesn't necessarily make you of interest..  what is major interest is those one thousand acre blocks of willing land owners who understand the up and down falls of this business..    the Oil and Gas industry is very VOLATILE.   Some got lucky early on getting paid for lands that really wernt in the play.. some companies made some big mistakes..   how do you as a land owner get the best option.. no doubt.. being educated is a great start..      and like Barry stated.. most of what you hear is other people's OPINIONS.. 

UNFORTUNATELY..   THERE IS Too many uneducated guesses out there..    

$18 Billion Worth Of US Land Rigs Have Fallen Victim To The Downturn    DO A search on this latest info for a real update on what is happening...     

Permalink Reply by wvlapua on August 3, 2015 at 12:36pm
Great info. Thank you all so much.

I'm hopeful my little slice of mother earth is still of interest to the industry. I'm going to start with the certified letter to XTO, then move on from there.

On a side note, a friend of mines well by Trans Energy has been producing for 3 months now. They tell him it's the best well in Marion Co. He's expecting big things to come out of his 19% royalty!

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