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Sean,
If you are a donut hole in a producing unit, you are entitled to royalties that are taken from your mineral rights. You need to contact the company that holds your lease as well as the company who is currently drilling to see the proudtion unit plans and where the well is drilled. If the well is under your land you are entitled to royalties.
Sean,
If Talisman hold the unit orders and is the operator and Chief owns a lease within the unit, then Talisman will pay Chief their share and Chief will pay the pooled royalty owners.
Sean,
I'm guessing that the lines go all around you, but not under you. If they don't go under you, I think the law is that they are not extracting your gas. Chief should really have traded your lease with Talisman. Maybe you can get out of the lease and then sign with Talisman?
Wrong Buckingham. If your land is included in a unit AND you have a lease, it makes NO difference where the bore holes are. You are entitled to royalties for every acre included and declared in the unit. You own your mineral rights, but you must be an operator of your minerals to protect your interest. A lease is "leasing" your rights as an operator to the gas company who you have an agreement with. A unit is declared and all gas extracted from that unit is shared and paid to ALL operators. An unleased parcel is not controlled by an operator and so the Rule of Capture applies for the Marcellus and shallower formations. However, an unleased parcel can not be drilled under (trespassing), but can be drilled next to and fracked (hence the rule of capture).
Hi Sean,
I live in buttonwood and am pretty familiar ( I spend too much time in the courthouse....) with all the units here. If you can provide some detail or the unit you think you will be part of I can try and get you some information or tell you how to find it.
You can go to the state Efacts web site http://www.ahs2.dep.state.pa.us/eFactsWeb/default.aspx and find the permit # for the wells in your area, then call Katie Schmid| Geologic Scientist, Carbon Sequestration Section
Bureau of Topographic & Geologic Survey
400 Waterfront Drive | Pittsburgh, PA 15222-4745
Phone: 412-442-4232 | Fax: 412-442-4298
and ask her to send you a Plat plan for the well. This will show if they are going under your property. If they are going under your property (, or within ???300??? yds- not sure how close) then your should be in a unit.
Sean,
Shell (formerly East) will file a Declaration of Pooling and Unitization in the Lycoming county courthouse. The document will have a map of the drilling unit and an exhibit that lists all the properties and leases included in the unit. Shell will typically send a copy of the document to all the affected landowners when they record it. Unfortunately the only way I know to get the document is to visit the courthouse.
As to Chief/ Talisman, I know of other landowners in Bradford county in the same situation. It seems pretty unfair, but Chief and Talisman do not have to play together and there is no PA law to require them to treat you equitably. It is possible that Chief will trade or sell their lease to Talisman and they will add you to their unit, or you may have to wait until the end of your Chief lease. Once you are released, Talisman would likely lease you and add you to the unit.
The only other angle I can think of would be to request a release from Chief based on the fact they are not planning to develop your property. There is a concept of an implied covenant to to prudently operate your lease that may come into play, but it is a difficult argument to make successfully.
Good Luck!
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