chk putting a pad on my property..advice

chk showed up on my farm today and started constuction on a pad and water impoundment.  gave us no notice...no surface agreement was signed....they are taking 12 to fifteen acres of our crop field..cutting trees..putting in roads etc.  i had no idea they were starting.  they gave us a surface agreement to look at...never came back and just showed up digging.  i went out this morning...shut them down...after i left they started again.  we have an old o&g lease from 2005...they say they can do whatever they want...any advice  mark

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Permalink Reply by mark o on December 12, 2011 at 6:53am

thank you for your support.  i do realize this is going to be a hard long battle.  i went from a frack supporter to a protester in 12 hours.  funny how life works.

Permalink Reply by Don on December 12, 2011 at 7:13am

What about the fact that you are going to get a well and can expect $10;00 to $30;00 per acre per day, per well, even with a bad lease ? Maybe Im not seeing the big picture, but I cant wait to see CHK show up on my land.

Permalink Reply by john ginkel on December 12, 2011 at 7:07am

Good Luck Mark, please keep us posted of the situation. Many people here, (leased and unleased), are interested in your progress and outcome. Good luck again.

Permalink Reply by Jim Litwinowicz on December 12, 2011 at 7:10am

Mark O. I went back through the whole thread and no where in it did you give the language in the lease. Most leases from 2005, when you signed, do not require prior notification or grant the landowner rights in choosing a well location. So unless you asked for addendum to modify the lease on this issue, than they are within their rights.

I and others here do not know what your lease states in regard to this so we really can't give solid advice other than talk to an experienced attorney to see if they violated the terms of the lease.  If they did, you may consider a court order to halt all activities until an agreement is reached. And if your lease doesn't address these issues than your only course of action would be to contact an expert financial adviser on how to handle all the royalties which will soon arrive in your mail box.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on December 12, 2011 at 7:19am

I am confused.

You have no surface agreement with them at all? Nothing in your lease that spells out compensation for crops or timber? What about a site fee?

Is this strictly crop and timber land with no occupied dwelling? If there is a dwelling what is the setback distance in your lease? Are they infringing on this setback distance? Don't you have a setback distance in your lease?

Is your concern that you don't like the location of the pad?

I agree that you should have been consulted and notified beforehand but don't we lease knowing full well that in order to get royalties some of us will have to be host to the wells involved? Can't make an omlet without breaking a few eggs.

I sincerely hope you can come to amicable terms with CHK.

Good Luck.

Permalink Reply by mark o on December 12, 2011 at 7:52am

i do have a bad lease from 2005.  i knew that when i bought farm.  they do have rights to do what they want.  everyother farmer that i talked to that was drilled on was consulted with before thay started.  i have a 110 acre farm with a 70 acres of soybean..  the lease has a 200 foot setback.  the are exactly 200 feet from our well.  pad is 100 feet from our house.  they are taking 12 to 15 acres  and putting a large impoundment pond on property.  we really wanted to work with them.  no unreasonable demands.  they never consulted with us...never asked what we wanted.   never told us they were starting.  we called half a dozen times to get info and never got a return call.  they had to put pad right beside my house when i have 110 acres?  lease says nothing about impoundment pond.  is 15 acres reasonable.  i do have some rights.  this is not just about money.  i have a farm that i bought to enjoy...they can't do whatever they want.  at some point they will need us....

 

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on December 12, 2011 at 8:29am

I feel for you Mark. Sure sounds like you're getting a raw deal and that's just wrong.

From what's on this and alot of other threads it sure sounds like Chesapeke is far from landowner friendly.

What about the 100' from the house? Maybe (hopefully) this is your bargaining chip.

We are all pulling for you! Best of luck and we sure hope it works out for you.

The only good thing is you must have what they really want the way they are rushing to lock up the lease. Just a shame their tactics are so dishonorable.

Glenn

Permalink Reply by mark o on December 12, 2011 at 8:38am

thanks glenn,  they can't say we were unreasonable because they never once asked us for input or if we wanted anything.  the location of the pad really does a number on the value of the house.  i can tell you one thing for sure...they will be trucking water into this site...there will be no impoundent pond!!!!

Permalink Reply by TFP on December 12, 2011 at 9:00am

I think Mark purchased a nice farm property with any existing lease that he did not sign which sounds like non-friendly property owner type deal.   I am not sure how its worded but CHK may be doing everything legally ok from his last posts BUT its in good business practices to return phone calls and have excellent communication and general politeness to each and every customer.   I think Mark has been wronged in this way from the posts here.  Legally......not sure.   Treating people with kindness and professional respect in a large business process like this is very important in my book.   I know I appreciate Mark's statements here and I hope we all can learn and support each other in any oil and gas dealings now and in the future.

Permalink Reply by Jim Litwinowicz on December 12, 2011 at 9:35am

I feel very bad for Mark O.  CHK or any company should work with landowners to minimize the damages. The fact they are not speaks volumes about CHK. And if they are building a large 15 acre impoundment, then I fear the worst....that they are putting in a regional pond that will be used for years to serve multiple wells. Look at the pic I posted on the Patterson well thread.

It is also a very good lesson for anyone that has yet to sign a lease. Be very careful, get educated, have a good group or a good attorney work with you. And if you are buying land, review the leases on it before buying.  I also fear many people have devalued their property by signing a bad lease.

When one sees or hears about this kind of activity, you can understand why there are so many people opposed to drilling. These companies need to clean up their act before enough people rise up to stop them altogether. It would be a shame to see such a beneficial thing as this to be destroyed by a few bad actors.

Permalink Reply by john p halloran on December 12, 2011 at 9:31am
Would somebody please put a drill pad on my property ill even buy my own water!
Permalink Reply by craig on December 12, 2011 at 10:08am

Watch what you wish for!

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