Beware of all the gas companies!

I signed two lease's back in 2011 with Gulfport Energy on 80 acres that I own in Belmont County, Ohio. Let me start by saying don't believe anything that any of the land men tell you, the are working for the gas companies and their own benefit not yours period. While I was negotiating my lease with several companies at the time in 2011. I clearly explained to them that any lease I would sign would require a Pugh clause, and that I would not except any lease that required me to pay any of the cost associated with the production or marketing of the finished product from any wells drilled onto my property. I ultimately ended up signing with Gulfport Energy because of the higher bonus payment and higher royalty percent, and the land man assured me the Pugh clause and the deduction clause weren't a problem, that a lot of people were requesting it. Well the land man was lying through his teeth after receiving my first royalty check and statement there were $14,574.11 in total deductions. Beware of any lease that includes the language below.

 

"All oil, gas or other proceeds accruing to Lessor under this lease or by state law shall be without monetary deduction, directly or indirectly, for the cost of producing, gathering, storing, separating, treating, dehydrating, compressing, processing, transporting, and marketing the oil, gas and other proceeds produced hereunder to transform the product into marketable form; however, any such cost which result in enhancing the value of the marketable oil, gas or other products to receive a better price may be deducted from Lessor’s share of production so long as they are based on Lessee’s actual cost of such enhancements.  However, in no event shall Lessor receive a price that is less than, or more than, the price received by Lessee."

 

It was explained to me that this was exactly what I wanted and that the second part of this clause only meant if they did any advertising to enhance the selling price of the finished product I would have some associated cost from that. Well I have since found out that this is the language that the big oil companies have adopted to lead land owners to believe that they are getting a no expense deducted clause in their lease. If you find this language in your current lease be assured be ready to pay every single cost that is associated with bringing the product to market. Don't sign it! Ask clearly for a no production cost clause and have it reviewed by a gas royalty attorney.

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Permalink Reply by skittles on January 5, 2014 at 2:25pm

me too, Greg K

015334grltd9mPermalink Reply by 015334grltd9m on November 11, 2013 at 11:31pm

JR,

ROTFLMAO :')  I'm sorry I can't help it.

Permalink Reply by Darlene Newton on November 12, 2013 at 3:09am

Well Mr Rich man that goes by a dead mans name because he is a coward to use his real name!  Not only do I have an College Education like these so called PEOPLE writing these leases I am an Educated human with a heart and a soul and I stick up for what is right!  For YOU to call me STUPID I think the IGNORANT one is you!  Any one that sticks up for what the Gas Companies have done is a LOW LIFE SCUM just like you Mr. Dead Man!

There is NO WAY IN H_LL to ever protect the landowner so having a lawyer is a bunch of crap , have you read what people are saying !The RICH GAS COMPANIES are in so deep with the Politicians!  They define words however they want! You ignorant man ,must obviously be a very rich man to deny these actions are false makes YOU look like a complete IDIOT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I DO blame the Politicians as well as the Gas Companies, and for you to think I am ignorant because they are stealing my money you can bet I am!    90 percent of the people in Bradford County could not afford an attorney you IGNORANT SELF CONSUMED COWARDLY DEAD MAN!

I am a nice person, and I plan on staying that way!  Plus I will keep running my mouth Mister Dead Man because I want the people to know the truth!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Darlene:)

Also I would love to invite you to my home , lwill make you tea with the bubbling water flowing from the faucet!  Then we can stroll around the so we can see the beautiful geysers that seem to keep multiplying in our water supply! Oh thats right I am just a whiner!

PS I can assure I take complete responsibility for my actions in my life!

A dead man that gets mad at an American speaking the truth about the fraud must be a dead man with a lot of guilt!

Permalink Reply by NY Gas Rights on January 5, 2014 at 12:48am

Darlene, I know you and  I know all about Bradford County. You are writing lies.

Permalink Reply by Kevin in Belmont County on November 12, 2013 at 5:04am

Well, I guess that makes me the second biggest ignorant, narcissistic, whining, over confident, pathetic, blame everyone but yourself land owner on GMS. Actually I am very disappointed though because I truly felt I was  #1. And as to the ignorant part, I have three degrees which we can set down and talk about any of them you would like. I have not gone through what Darlene and her family has, but I agree with what she has to say. You can have the best slick talking attorney you can waste your money on and still get screwed over by these O&G companies. I know that for a fact I may be retired, but I own a business in the Law & Legal  field and I see and here it everyday. Keep voicing your situation Darlene its helps to educate others!

Permalink Reply by Joseph-Ohio on November 12, 2013 at 5:22am
Biggest problem is there appears to be nothing you, Darlene, or any honest landowner (or attorney) can do to correct / untangle the web trap that's been woven.
Deceit appears to be legal.
Deceit appears to be an indication of intelligence these days.
Deceit appears to be sanctioned.
Deceit appears to be thought of as a virtue by business.
However we know deceit is a vice and is corrupt.
It's a rat race and the rats appear to be winning.
Permalink Reply by Darlene Newton on November 12, 2013 at 5:30am

Yup and unless we VOICE our RAGE and make them hear us NOTHING will be done!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Darlene

Permalink Reply by NY Gas Rights on January 5, 2014 at 12:54am

Darlene YOU signed the lease. If you can read, then YOU signed the lease AFTER reading it. You are posting lies because your greed makes you think you should be paid what the gas companies earn. You did nothing to create the gas under your land. You did nothing to prove the gas WAS under your ground. YOU did nothing to prove you had clear title to the gas under your ground. In other words; you did nothing to create the benefits that you think you should be paid a higher amount for.  You are lucky that your land is on the Marcellus, but it got there 390 million years before you were born.

Permalink Reply by Joseph-Ohio on November 12, 2013 at 6:54am

They teach deceit and deception to our youth in Colleges and Universities as if it is signatory to educated people, and smart and virtuous.

To me and mine, deceit and deception are viewed as hallmarks of crookery, vice and iniquity and NOT the way to live one's life.

 

Permalink Reply by Darlene Newton on November 12, 2013 at 7:01am

:((

Permalink Reply by Joseph-Ohio on November 12, 2013 at 7:14am

When I look at it that's what I see.

It's ugly.

It is what it is.

Permalink Reply by Joseph-Ohio on November 12, 2013 at 7:44am

The dollar is the moral yardstick.

The dollar has no morals.

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