I have an old Clinton well/lease with a non pooling amendment. The lease has been re-assigned to CHK. They want to eliminate that provision. Also no mention of any acre limit for a drilling unit. Also some other crazy language about changing any payment at will, and some other crazy amendments about being able to absorb other parcels into the drilling unit whether leased or not, whether adjacent or not.
I am in Harrison county. Any suggestions for a good attorney with experience in lease language that could advise me.
Also, any idea what kind of reimbursement I should receive for allowing a pooling of the property? I have control of 122 acres. Thanks in advance.
you do more hoping and dreaming then thinking
Your land is not big enough for a horizontal well. What they're really after is being able to unitize/pool your land so that they may make it part of a unit. I don't think I've seen any units in Ohio that are less than several hundred acres.
I don't know what the other stuff you say they want to change is about, but the main thing they want is definitely the pooling clause.
And I think Mike Murphy means that the lease is junk as in it has terrible terms for the o&g company, so they consider the lease junk even though the land has value. Not saying that the land is worthless.
Yes, this is an old 12 1/2% royalty lease. The original company doesn't deduct anything except some kind of tax.
The landman's first offer is $250 per acre. Said "no way were they going to pay thousands per acre."
I would like to know if anyone has negotiated for anything more than that and how much more.
I'm thinking that, yes this is more like negotiating a new lease.
People have certainly negotiated more than that, either a higher royalty, a higher offer per acre, or sometimes both, I'd imagine. But it is all dependent on the location of your property... how good the area is and how bad they want your lease under the new lease terms so they can either put it in a unit or get more money for it when they sell it.
FYI, there have been landowner groups organized with law firms to negotiate amendments in areas that they know are valuable enough that they have some serious negotiating power.
Get familiar with the theft revealed by Hope Christian Fellowship vs Chesapeake Energy. Also get use to $15 per acre per month which appears to be the what our producer thinks we deserve, since they ignore our leases which are 17.5% Gross No Deductions. Good Luck, and don't change a thing on your lease.
I agree you need a lawyer and the entire thing is ridiculous. But I must comment anyway on just one aspect:
That "whether adjacent or not" thing is so outrageous as to be in another galaxy. I read about that scam years ago. Stay away. Stay far, far away from that one.
Go here and see what nearby wells are doing.
When you click on an active button (for example the red button 1st Quarter 2015 etc.) an Excel spreadsheet should open. Sometimes they open up and are blank. If that happens click the View tab at the top of the screen, then click Arrange All, click Tiled, then OK. When the spreadsheet opens, in the column names line, next to the word County is a drop down button, click that and then click select all. This will deselect all, scroll down to Harrison and click the Harrison box then click OK. Do the same with the Township column.
To physically locate the wells in your township go to: http://oilandgas.ohiodnr.gov/well-information/oil-gas-well-locator
You need to know what is happening around you.
You should expect to get a lot for modifying the old lease. The old vertical lease deductions are usually limited to just taxes. Keep that wording if you can!