Chk wants to clean up my lease-Need a good attny.

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.

Views: 2172

▶ Reply to This

Replies to This Discussion

Mike MurphyPermalink Reply by Mike Murphy on November 21, 2015 at 11:34am

you do more hoping and dreaming then thinking

Permalink Reply by Joseph-Ohio on November 21, 2015 at 12:07pm
IMHO, you don't know what you're talking / writing about.

Do you think, you, of all people / members could possibly change my mind (about anything) ? ?

If so, you're the one between the two of us that's dreaming man.

Your continuous taunting / baiting serves no other purpose than to hi-jack valuable commentary.

Are you trolling ?

Is that your purpose here ?
Mike MurphyPermalink Reply by Mike Murphy on November 21, 2015 at 1:03pm

DREAM ON

Permalink Reply by Tyler James on November 17, 2015 at 4:37am
What about Land/Lease in the Marcellus?
Permalink Reply by G.H. on November 17, 2015 at 4:56am

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.

Permalink Reply by Tim Tarr on November 17, 2015 at 5:52am
LOL. They want to clean up on your lease is more likely!
1st thing I'd negotiate is a payment for Amendment agreement. Depending on what signing bonus is in your area or what you want!!!
2nd would be royalties, bet that "old" lease has 12.5% (1/8). I would get agreement on those 2 before I'd spend time and effort on the remaining details.
Those restrictions were placed in that "old" lease for this or perhaps other reasons.
Think of this as a new lease. Once you sign there will be no undoing it. Get them to agree to those 2 than seek Competent Legal advice before signing anything whatsoever!!
Permalink Reply by brat on November 17, 2015 at 6:46am

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.

Permalink Reply by G.H. on November 17, 2015 at 7:54am

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.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on November 17, 2015 at 12:44pm

brat,

   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.

Attachments:
Permalink Reply by Undecided About Oil on December 18, 2017 at 3:47am

Any News?

Permalink Reply by Frank Walker on November 19, 2015 at 3:46am

brat

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.

Permalink Reply by Philip Thackray on November 19, 2015 at 4:25am

Brat,

Go here and see what nearby wells are doing.

http://oilandgas.ohiodnr.gov/production

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!

Phil

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service