If your lease expired, then request a "Surrender of Lease"
A second wave of leasing activity is happening throughout Northeastern Pennsylvania. If you leased your property in 2008 for a five year primary term, the lease will expire unless the Lessee has commenced drilling operations, declared your acreage in a unit, or extended the lease by other provisions. If the current lease has an option to extend for an additional period of time, be certain that you are aware of the current expiration date and the terms required for the Lessee to exercise the extension option. At the expiration date, it is the landowner’s burden to request a Surrender of Lease document to record in the Recorder of Deeds Office. The Surrender document is important; it is notice that your property is not subject to an active lease, and is available for leasing.
Feel free to use the attached example as a request for your surrender. Send the Surrender Request via Certified Mail with return receipt requested and retain a copy of the letter, post office receipt and tracking number.
Should you need guidance or assistance with the surrender request or with seeking best offers, contact me at gsgass@gmail.com
Gregory S. Gass
Certified Professional Landman
Fairchase Associates, LLC
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Permalink Reply by Jack Young on
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It may be hard to find anyone to lease your tract right now. Shell has a 1/2 interest in the OGMs north of you under lease, but told the owners of the other 1/2 they were no longer interested in leasing there. And JKLM isn't actively leasing anywhere except for a few small areas close to their proposed test wells.
Shell also has the State Game Lands to your southwest under lease. So the only company who could drill your 160 acres is Shell since they have the adjoiners, and they apparently aren't leasing. I'd wait and see how things develop over the next couple years. There's just not much you can do in the mean time.
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Larry, I have sent out an email to "powers that be" and will get back to you tomorrow. We have spoken before when you were staying in FL and Wellsboro. Will you be @ the Sports Center or @ home?
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Part of Jack's reply is spot on, but not all. Touch base w/me through email if we don't connect by phone.
jlhanch@nc.rr.com
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My reply is all "spot on" Janice, and I suspect you know that. If you want to claim otherwise, why not make the details public so I'll have a chance to reply? You're in a tight spot here, since we're talking about a specific property that's easily identifiable. So either tell me what I said that isn't right, or let the folks know that you don't actually have anything new for them.
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Being the "sage on the stage" when questions arise is noteworthy. Being an attorney you know that already. I looked beyond what Larry was asking and what you stated to grasp the entirety of what was being discussed.
I expect he received a Surrender of Lease document as the lease term had expired and is reaching out to better understand his options in today's market. Even producing areas are marginal for further leasing @ this time due to low prices, limited take away capacity, and ever-changing gov't regulations that keep the E & P companies dancing like puppets on strings. And of course that mish-mash filters on down to the low man on the totem pole ... the landowner.
Court cases continue to cloud the picture ever which way one turns. How slowly can this entire scenario drag on?
You're right, Jack. These are positions that aren't new.
Big lease signing pay-outs from the days of frenzied acreage gobbling by the companies are long past. Those same companies ... the ones still existing, are drilling the AC they have but not wanting to expand their holdings. Those few having extra funds are willing to buy rights, but not even @ the leasing prices we saw earlier.
Individuals holding rights acreage have a decision to make and right now leasing is not one of the options. Their choices are to sell kissing their holdings good-bye forever, or "hold on" till the rise in prices makes drilling a solid money-maker again. Optimists in the business are predicting that will happen @ end of 2016 and into 2017.
The geology in the area Larry described is good. Why else would JKLM, Shell/SWEPI (now controlling Ultra assets), Travis Peak, etc. all focus along the lands near to the Tioga/Potter border. The volume results of their test wells will determine when the next leasing boom will be. Today's low market value could turn on a dime tomorrow. Keeping their cards close to the vest is a smart ploy for companies wanting to expand when the time is right.
Timing is everything in business and personal affairs.
Hopefully our exchange has updated readers on regional happenings that are affected by so many issues outside our counties. It's frustrating. It's life.
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Great - so you don't have anything to say that suggests that my comments weren't completely "spot on". As I expected.
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Permalink Reply by jb379 on -
Jack,
I think by now, most on here are aware Janice has to stay "relevant" if she wants to continue to play the pied piper...and the only way she can do that is by proudly displaying her infinite wisdom which is obviously above and beyond what you bring to the table (cough, cough, gag).
JB
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Permalink Reply by G S Gass on
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Larry,
We were able to secure leases through 2015 for several clients in Potter and Tioga Counties for favorable terms; however, the exploration companies have pulled back offers except for in-fill leases on units to be drilled within the next 12 months. Be patient - No lease is better than a bad lease.
Best,
Greg
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Thank you G S for sharing w/Mr. Knapp. You've nailed what has happened throughout our region. Like you 4-County was able to secure several leases during the same time period, but how wonderful had we both been able to do more for our clients.
Your last sentence says it all.
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