Chevron, Lambert, Pa. Fayette County

We have mineral rights to 29 acres in Lambert, Pa. which our great grandfather left us.  Chevron has set up 2 oil rigs on either side of another property adjacent to our 29 acres.  How can we find out if Chevron is not extracting minerals under the surface that we have the mineral rights to? In the past Vicking Resources sent us a lease to sign (apparently they found minerals on the 29 acres) and nothing was ever done, then a few years later Atlas sent us another lease to sign, (many family members are involved with this), nothing was ever done.  Is it possible for Chevron to extract minerals from the 29 acres without anyone knowing about it?  Would like your advice as what we can or should be doing? Marge

 

 

 

 

 

 

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Permalink Reply by Marguerite Blanc on September 2, 2012 at 3:06pm

Has anyone joined MarcellusGas.Org as a member?  Would like to know if this is ligit.  Seems like I can get quite a bit of information to what I am looking for.

Thanks Marge

Permalink Reply by Jim Litwinowicz on September 2, 2012 at 10:26pm

Marguerite; First you say you were "offered a lease, nothing happened" What do you mean by nothing happened? Do you mean that no one signed the lease? Or did you sign and no wells were drilled?

You say you own the "mineral rights"  In Pa, mineral rights refers to hard minerals like coal, limestone, and/or  gravel(at least for now). If you own the mineral rights but not the oil and gas rights, then the surface owner may still own those oil and gas rights, not you or your family. You need to research the deeds and the reservation clause your great grandfather used.

You should also take the deed to an very good O & G attorney. If you determine that you actually do own the oil and gas rights, then contact DEP and get the maps of the unit(s) as previously advised. And follow the advise of your attorney. If you don't know one, I'd suggest http://mopolaw.com/

Permalink Reply by Marguerite Blanc on September 3, 2012 at 7:04am

What I meant nothing happened, meaning all the heirs involved did not sign the lease for one reason or another, they are scattered throughout the U.S.  Yes, we do have the gas and oil rights and also a deed from my husband's grandfather.  There are quite a few third and fourth generations and maybe fifth generations, not sure.  The last I heard was Chevron was still interested in leasing the gas and oil mineral rights to this tax parcel.

 

Permalink Reply by Jack Straw on September 3, 2012 at 11:33am

From what I understand, your extended family own O&G rights for 29 acres.

A lease bonus for these 29 acres might potentially amount to a sum of $50,000-$100,000.

Should the acreage be included in a pool; ultimate royalties might amount to ten times the initial lease bonus.

Ownership (and the ability to lease) is clouded by the fact that there are a large (unknown?) number of heirs.

For the O&G rights to ever have any value to the family, steps would need to be taken (the sooner, the better).

 

My suggestion:

One individual in the family would need to be identified to look after the families legal interests; preferably someone domiciled in PA and preferably someone of good character, with basic accounting skills.

This individual would need to identify all family members who have a share in the 29 acres (including all, excluding none).

This individual would need to have an Attorney draft an agreement giving that individual authority to manage the affairs of the 29 acres for the benefit of all heirs.

All heirs (excluding none) would need to sign a document allowing that individual the limited Power-of-Attorney needed to manage the affairs of the 29 acres for the benefit of all heirs.

 

If something similar to what I suggest is not accomplished, the family will likely never benefit from the O&G rights for the 29 acres.

 

All IMHO,

                       

                   JS

Permalink Reply by Bernie Horabik on September 3, 2012 at 5:42pm

Why don't you just sell your fractions and let someone handle the headaches before

time passes you by and you don't get anything?

Permalink Reply by Oliver Perry on September 4, 2012 at 8:41am

Marge,

They cannot drill under the property you hold the rights to unless they lease them from you. Even if they drill the property next to you, they must stay away from the boundry a specified distance. I don't remember the exact distance, possibly 300 feet, this includes the horizontal legs. So after they frac the well, very little if any gas would flow to their well from your property. Gas does not flow long distances through shale that has not been fractured. I would contact all the heirs to see if they are all in agreement to lease the rights. If so, contact Chevron to see if they are still interested. Chevron may be hesitant because of the large number of heirs involved. It is a difficult position to be in, I am in a similar situation.

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