Drilled and Un-Leased

           I have 20 acres of a 40 acre parcel in Tioga county that I inheirited. I co-own this with 2 of my cousins.While getting title to this property in order, Shell put a well-pad nearby. I notified Shell in Jan. 2012 I now owned the property and was told they weren't leasing. In October 2013 they drilled 2 horizontal lines under my property . I believe the well is in production now. I still am NOT leased although I've gotten some low offers from a SWEPI landman. They offered $1500/acre and 15%. Do I have any leverage here or is this a fair offer ?  Thanks

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Permalink Reply by Mark McGrail on August 4, 2013 at 6:54pm

Allen,

How do you know the laterals went under your property?

Are you sure you aren't leased ? If you answer yes, how do you know you aren't leased ?

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on August 4, 2013 at 10:44pm

Allan,

If they have no lease and they drilled under your property then it's a mineral trespass.  Call a lawyer Monday morning and get this sorted out immediately.

Permalink Reply by Allen H. Hopkins on August 5, 2013 at 12:57am

    Hello all. I was told by my cousin who is a co-owner the drillers told him they were going under the property. Also, how do I know I'm not leased? I haven't gotten a shred of information at all about the well, the unit size or location, and whether I'm included or not. All I've gotten is 2 recent offers to lease within the last 4-5 months. The last one was 2 weeks ago; from Swepi. Like my earlier post asked, what is my leverage here?.What are the current leasing offers? This is Tioga County, pennsylvania by the way. Thank you.

Permalink Reply by Katie Crow on August 5, 2013 at 1:13am

We have been lease for a year and a half and I got a call last week about leasing my property.  Have you recently inherited?  You may want to check the estate's recent records and see if there was a large unexplained influx of cash in the last couple of years.  Just a suggestion.

Permalink Reply by Tim Tarr on August 5, 2013 at 11:11am

http://www.tiogacountypa.us/Departments/Register_Recorder/Pages/Reg...

That's the best place to start.

A trip to the office and a few hours or some online time and a few $$$ researching the deed will tell you if your leased (HBP or even storage) or if you even have Oil and gas rights. You could also spend a few $100 and get title search done for you. 

Permalink Reply by Golddigger on August 5, 2013 at 11:33am

Allen,

Your property is in the "Schmelzle Unit" in Union township. It also was leased in 2006 and amended and extended in 2011 by Harold and Dorothy Hopkins, which I am assuming are your parents. As Of Jan 2013, there is 1 vertical well and  2 horizontals permitted or possibly drilled but no production as of that date. The new reports coming out next week from DEP may have new information. If you have not contacted Swep and filled out a change of ownership form along with sending a copy of the new deed, all royalties will be paid to the Harold and/or Dorothy Hopkins or their estate. Hope this helps.

Permalink Reply by Tim Tarr on August 5, 2013 at 12:05pm

Wow just looked at recordings and there may be one of those Rare screw-ups. There was a Surrender filed by SWEPI instrument # 201209011 Might be well worth looking into. Don't sign anything without a lawyer !!!!!!

Permalink Reply by Sandra Jankowski on August 5, 2013 at 11:43am

I would go to or call the court house that has a copy of your deed for any information on gas  or oil leasing or unit you may be included in. You can also go to website Landex.com  counties copies of transactions that have taken place. Type in your first last name then first name  on left check off your county then check submit.  If name in someone else as owners type in that name instead.

Permalink Reply by Golddigger on August 5, 2013 at 11:51am

Allen,

Only your deed will be filed under your name at the courthouse. The lease and unit will be filed under your parents name.

Permalink Reply by Allen H. Hopkins on August 5, 2013 at 2:47pm

Dorothy and Harold are my cousins. They are co-owners. I appreciate people's ideas. Thanks. I'm still wondering, in my position how strong a position do I have with the landman?    

Permalink Reply by Golddigger on August 5, 2013 at 4:51pm

Allen,

I am not an attorney, but it looks like 50% of the gas rights were leased to Shell by your cousins, Harold R Hopkins Jr. and Donna Williams, Feb 2011 & Aug 2010 respectively. That would allow Shell to go ahead and place the property in a unit. Once production started your cousins would receive 50% of the royalties and the other 50%, if unleased would go into an escrow account until an agreement is executed. Again, I am not an attorney, but I think because your cousins signed a lease, the gas company has the upper hand as far as having the authority to drill. I would be curious to find out how you make out.

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