Everflow Eastern sale to Chesapeake
I read the recent article in the Vindy about how the sale of the mineral rights to Chesapeake was a "windfall" for the landowners. This is complete and utter b.s. When those leases were entered into 20-25 years ago the intent of the contract was for the shallow gas rights. Eastern Everflow obtained the benefit of its bargain and still after this sale maintains the rights to the shallow gas rights. This "windfall of $35 million belongs to the landowners.
Even more appalling is the suggestion that the landowners should freely sign lease amendment agreements with Chesapeake so as to allow for larger pooling agreement/units and not receive a bonus and the 20% royalty rights that most others are getting.
I have several clients who are not going to stand for this and we are preparing for "war!"
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Replies to This Discussion
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Permalink Reply by 3uq96odaochmj on
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"preparing for war"...............I do hope that you mean a "legal" battle with Attorneys. Good luck with that - my crystal ball sayz that the only one(s) that will win are the Attorneys.
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Permalink Reply by Marty Yavorcik on
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I am a trial lawyer
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Permalink Reply by Frank Nesmith on
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Boy am I ever glad to hear that! These people deserve the benefits of a good lease.
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Permalink Reply by elliemae82 on
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This is what we need. The more we get the word out and stick together the better chance we will have to be successful. GOOD LUCK!!!
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Here's an idea that may get you on track and hopefully going in the right direction............a class action lawsuit may / could be brought against the companies, by lessors, that "sold" the deep rights from under the leases held by shallow drilled wells. Probably the first hurdle would be to pass / enact legislation decreeing that the original lease(s) can only be held by the deepest producing well on it. In Pennsylvania, that is typically between 1600' - 4500', and well above the Tully Limestone. This would most definately involve a large scale education effort directed towards the lessors with shallow well production on their tracts, along with large scale lobbying directed to the State Representatives & Semnators to enact such legislation.
Major, major, major, major legal battle.......................
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Well, if the leases have defects, they have to be resolved. Once Chesapeake wants to open the leases to cure the defects, I'd think that then reopens the leases up to renegotiation.
Nobody forced Chesapeake to purchase leases with defects from Everflow.
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I am a trial lawyer my friend
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Permalink Reply by Alan Pavlik on
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You know the intent of all those leases? You were there when they were all negotiated and signed. You want to bust a legal contract because your clients are unhappy. Did those leases say for shallow gas rights only?
Sounds like you want a do over instead .....which is complete and utter B.S.
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Hey smart guy read Butler v. the Estate of Charles Powers in the PA supreme court. If Everflow still has shallow gas leases and that is what they bargained for y do they get all the rights to deep rights when they didn't even know it existed? Read the case and understand the law before u get burned.
Everflow and Chesapeak are going down and will pay for their theft.
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Permalink Reply by Frank Walker on
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Well, Marty
I have no doubt you are a trial lawyer. You are cocky and brash. You fit the template. I hope you're not also stupid.
Understand carefully, I agree with your position in this matter. You are correct in your thinking. And I admire your willingness to take on a behemoth. It's your attitude that worries me. Because Chesapeake will appeal this to Kingdom come and beyond. If you're prepared to go the distance and can afford to spend the time, God bless you. But only if you can maintain the cockiness after a few years of courtroom skirmishes will you have earned my admiration, and that of so many other beleaguered landowners tired to tears of having become Chesapeake fodder. Good luck to you, Marty. You're gonna need it!
I wonder if you're aware of the recent situation that went down over here in PA, in Sullivan County. Gasco parked a bulldozer on landowner's property and claimed HBP. Landowner challenged in court. It was a slam dunk, obvious fraud. But gasco played the appeal game and landowner could not afford to pay the skyrocketing lawyer's fees. Landowner lost the case forthwith by virtue of necessity to withdraw. It sucked, but that's how so much of this stuff too often plays out. I hope you do better, but cockiness won't get it done. Staying power, persistence, and great lawyering will be what it takes to put the mongoose bite on the Chesapeake snake. They are the worst of the worst. They are unadulterated, unvarnished, evil.
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Permalink Reply by Alan Pavlik on
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Read the lease..that tells them what they got, nothing more nothing less, i'm not burned , but I do know trial lawyers will litigate when the truth is no where to be seen, as long as they get their cut of the prize! That's theft alright smart guy
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Permalink Reply by Sage59 on
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I agree Alan, but it also means that CHK is bound by the leases that they bought. I bet many of those leases have a unitization clause of 80 to 160 acres. Not 640 or 1280. They must renegotiate those leases with each landowner to drill a new well that they did not envision at the time, so maybe too bad for them also. If their idea of renegotiating is my way or nothing, I hope we can give them a fight. Also, many of those original leases call for free gas to be provided to the house. That will have to be addressed also. I know the pressure on a new well is too high, but my lease is written that way, so something fair and equitable needs to be worked out. I do not plan on being a pushover. I want a fair result. I am not thrilled about laywers also, but CHK has their hatchet men and women primed and ready.
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