XTO is trying to use unitization to force landowners to accept $3,200,18% for a two year lease.

XTO is offering ODOT $8,000 an acre with a 20% royalty for a 5 year lease.  But for normal landowners they reduced the offer from $6,500, 18%, 5 year to $3,200, 18%, 2 year.  

Start reading at page 205:

http://oilandgas.ohiodnr.gov/portals/oilgas/pdf/unitization/2016/Wi...

Views: 2173

▶ Reply to This

Replies to This Discussion

Permalink Reply by Philip Brutz on December 29, 2015 at 1:35pm

Clearly the land is worth $8,000 per acre or they would not be offering that to ODOT,  
but you are right, many people would accept $3200. 

Permalink Reply by Gas Boy on December 29, 2015 at 5:41am

Gee..........I'm not a greedy person, but in todays energy and business climate of 2015, I'd be tickled pink for $6500/acre for a 5 year lease!!!

Here in PA, you'd be severely lucky to be even offered $1500/acre for a 5+5 lease.

Permalink Reply by Olive Sue on December 29, 2015 at 9:06am

Just a thought for all of you, if you happened to have signed a Beck lease 10 or eleven years ago you are not getting anything so........be very sure you like every aspect of what you sign, it can have long lasting effects.  May all be blessed with health and happiness in 2016!

Permalink Reply by Barry D on December 29, 2015 at 2:38pm

Phillip,

Unitization is a process.

A part of that process is review, by the ODNR, of input from affected landowners.

Another part of the process is a hearing, where all parties may be heard. Land owners should attend these or have their responses entered as part of the record.

Finally, My understanding is that, the ODNR has a very strict process that companies must follow when filing a unitization request. Plus a substantial filing fee (I believe $10,000.00). The filing fee can be lost if at any point in the process the ODNR determines that the company has not complied. Part of the compliance is proof that the company has engaged in good faith negotiations with the landowners in negotiations.   Again - my understanding

So, this is not a slam dunk process for the company with a guaranteed outcome.

RSS

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

Badges  |  Report an Issue  |  Terms of Service