deed restrictions ans chesapeake

We have been told by Chesapeake that in order to be included in the second leg of a well we must sign a paper stating that we release the Agricultural and recreational use restriction we have on our land.  From my research this restriction just involves the surface use.  Why then would that have to be released in order to be included in the unit.

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Permalink Reply by craig on September 21, 2012 at 7:06am

Where is your property, Pa, Ohio, WV? It will make a difference i suspect.

Permalink Reply by Jack Straw on September 21, 2012 at 8:21am

Not to be flippant, but have you asked CHK why they are requiring you to sign a paper stating that we release the Agricultural and Recreational Use Restriction?

It would seem that they are the only one who could (if willing) provide a definitive answer.

Just a thought -- could it be that your lease would allow for some surface disruption (access road?, gathering line?, pipeline?, water line?, etc.) that would require such a release?

It is difficult to parse what might be going through the mind of an O&G company Attorney; doubly difficult when it is a CHK Attorney.

 

All IMHO,

                  JS

Permalink Reply by Ed on September 21, 2012 at 10:30pm

In Pa under the "Clean & Green" classification a property receives reduced taxes according to use and whether the land owner opts in to the "clean & green" ( agricultural reserve, forest reserve, recreational reserve).  If your land is used for any other use you must pay the higher regular amount BUT only on the area used.  for example:  100 ac under clean & green.  If 10 ac is used for well pad, roads pipelines etc., then 90 ac is still clean & green and 10 ac is taxed higher.  Plus there is a 7 year back taxes due on that area once the use is changed. 

Just an aside: Under Clean & Green you must have 10 ac to qualify.  And if you use the recreational classification you are required to leave it open to public recreational activities such as hunting, hiking, etc.   But not under the other two classifications.

Make sure you add wording requiring the drilling/gas producer pay this extra money AND the extra amount in the future.

Permalink Reply by Brian V. on September 22, 2012 at 5:52am

Is your property in a concervancy? In other words is there any restrictive language in your deed or in an agreement with an agricultural concervancy? The language may only involve surface use however other language in the restrictive agreement may detail the properties use and what other interest my be involved. You will have to sign this along with the entity that has the agricultural agreement. 

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