When Leases Term & Things Pick Up

Hoping we don't see a lot of Forced Pooling Applications to the ODNR to pool lands / landowners into substandard tailgate leases. That's always been of serious concern to me - and don't know why it doesn't seem so to everyone else.

That's why I think Ohio needs to either revise force pooling rules to provide a modern land / landowner cognizant Leasehold with a minimum $3,000 / acre sign on bonus / paid up front delay rental and at least a 12.5% guaranteed royalty - or repeal force pooling / force unitization laws / rules altogether.

Something like that would need to be applied to all Ohio forced pooling / forced unitization applications for any long horizontal bore in any strata / for all pooled acreage amounts - HBP or whatever.

All as it always is, only IMHO

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Permalink Reply by Joe Bezel on November 9, 2015 at 4:01pm

Bob, excellent document.  Thanks for posting it.  It very clearly lays out the laws of every state regarding this issue.  It will be useful when discussing the topic with elected officials.

Permalink Reply by Joseph-Ohio on November 10, 2015 at 4:57pm

Thought it was a great attachment as well Joe B.

Permalink Reply by Joseph-Ohio on November 14, 2015 at 12:54am

http://gomarcellusshale.com/group/usa/forum/topics/when-leases-term...

Take the link to another group's discussion of the same name for a look-see read of what a few other folks think.

Permalink Reply by Joseph-Ohio on November 14, 2015 at 1:04am

http://gomarcellusshale.com/forum/topics/majors-have-big-dollars-to...

Take the link to another related discussion that I think is important.

Permalink Reply by martin on November 16, 2015 at 8:07am

Its the tree huggers that need force pooled why should one or two people be able to hold up a unit? I like Ohio's force pooled law.

Permalink Reply by Joseph-Ohio on November 16, 2015 at 8:36am
I think you ought to look at it closer martin.

A lot of room in it for a landowner / lessor to get seriously burned if you ask me.

Needs fixin' if you ask me.

JMHO
Permalink Reply by Joseph-Ohio on November 16, 2015 at 10:57am
martin,

I'm wondering if perhaps your lands are HBP or leased under an older tailgate class kind of lease that perhaps you're currently unable to escape ?

Those older leases did not acknowledge the long horizontal bore, 640 Acre (or perhaps even larger) acreage pools / types of wells that are being built out in this modern day and age.

That, IMHO is also just the kind of thing that needs change.

To charge the reasoning off as that of a biased 'tree-hugger' kind of complaint is also wrong.

It's a way different ball game today.

IMHO, any landowner / lessor that these days is HBP or in any manner bound by a basically obsolete leasehold agreement that was written for simple single vertical smaller acreage pool development is being taken advantage of.

These new wells are a whole different animal if you ask me. I think it is patently unfair / wrong to bind lands to an older lease agreement that does not acknowledge today's modern techniques / technology.

These are JMHOs
Permalink Reply by martin on November 17, 2015 at 1:57am

No I am not HBP or under tailgate. We have a tree hugging neighbor with about 150 acres that will never sign a lease under any circumstances. I say force pool his butt.

Permalink Reply by lance on November 17, 2015 at 2:11am

I bet your neighbor is a big Obama fan? These tree huggers are missing the big picture... Energy Independence. Would they rather have their children and grand children  depend on "Arab" oil from people who hate our guts and want to kill all of us... I say develop our own resources and tell the Muslims to go to hell l where they belong... Stop making them rich! They are out to destroy us and our American way of life. I could go on but I get pissed just thinking about the POTUS kissing the ass of our enemies....and making them more powerful...  

Permalink Reply by Joseph-Ohio on November 17, 2015 at 3:04am
I'm reading you also lance and feel the same way.

But, the rules / laws still need fixin'.

It's a new day with the advent of the long horizontal bore and large acreage pools.

JMHOs
Permalink Reply by Joseph-Ohio on November 17, 2015 at 3:00am
Well I guess that happens too then.

IMHO, however, the rules / law still need fixin'.
Permalink Reply by Joseph-Ohio on November 18, 2015 at 4:47am

Reluctant Landowners / Lessors :

The way I see it, any potential lessor after having been offered a fair, long bore horizontal pooled acreage type of  'STANDARDIZED' Leasehold Agreement (with Landowner / Lessor Considerations in step with what we've been discussing here) and still refuses to even negotiate a deal would be the one to end up in the courts to settle matters.  That, I would think, would also work to minimize litigations and spur on development / our domestic economy.

I've only put a few things that I think would make Landowner / Lessor sense into this discussion.  I'm sure other folks can think of other clauses / considerations to make the long bore horizontal Leasehold Forced Pooling / Forced Unitization Rule / Law more Landowner / Lessor cognizant / fair.

Another I just thought of as I write would be to make the Leasehold Agreement a 'No Surface Disruption' type unless negotiated as an additional compensation line item.

I would like to see all readers chime in here with their ideas.

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