Good, Bad, Better Best Pugh Clauses??? - GoMarcellusShale.com2024-03-28T19:05:54Zhttps://gomarcellusshale.com/forum/topics/good-bad-better-best-pugh-clauses?commentId=2274639%3AComment%3A616829&feed=yes&xn_auth=no The Pugh clause is so imp…tag:gomarcellusshale.com,2014-08-30:2274639:Comment:6172772014-08-30T00:35:36.625Zpacmanhttps://gomarcellusshale.com/profile/pacman
<p> The Pugh clause is so important I only know that because I have been on the bad end of a Pugh clause. In wetzel co we are in a unit where as the bore path runs through our property and they cut 4acres out of the unit and didn't pay us 1ft on the other side of the bore path.. I'll give you 3 guesses and the first 2 don't count who this was. I have contacted them many times only for them to tell me after months they will just use RULE OF CAPTURE.</p>
<p> The Pugh clause is so important I only know that because I have been on the bad end of a Pugh clause. In wetzel co we are in a unit where as the bore path runs through our property and they cut 4acres out of the unit and didn't pay us 1ft on the other side of the bore path.. I'll give you 3 guesses and the first 2 don't count who this was. I have contacted them many times only for them to tell me after months they will just use RULE OF CAPTURE.</p> (Laugh track appreciated)
I a…tag:gomarcellusshale.com,2014-08-30:2274639:Comment:6174332014-08-30T00:11:45.856Zal raptoriahttps://gomarcellusshale.com/profile/alraptoria
<p>(Laugh track appreciated)</p>
<p>I am not confident they even know they are ruining anything until after the fact. And few people in the field, or in the boardroom for that matter, look beyond their own generation's greed.</p>
<p>Sigh...it's hard to trust a corporation and all its representatives for beyond one's own lifetime.....</p>
<p>Thanks Tom,. hope you got a complimentary breakfast.</p>
<p>(Laugh track appreciated)</p>
<p>I am not confident they even know they are ruining anything until after the fact. And few people in the field, or in the boardroom for that matter, look beyond their own generation's greed.</p>
<p>Sigh...it's hard to trust a corporation and all its representatives for beyond one's own lifetime.....</p>
<p>Thanks Tom,. hope you got a complimentary breakfast.</p> Well, that's the $64,000.00 q…tag:gomarcellusshale.com,2014-08-29:2274639:Comment:6171972014-08-29T23:38:28.752ZTomhttps://gomarcellusshale.com/profile/Tom783
<p>Well, that's the $64,000.00 question isn't it? I'm not a geologist nor do I pretend to be, even though I stayed at a Holiday Inn Express last night (Inject laugh track here).</p>
<p></p>
<p>Seriously, I couldn't even begin to answer that for you. Except to say that the oil and gas companies make money be extracting minerals from your property. I would think that sheer greed would prevent them from ruining the other strata and making it non productive. I think that if they had even the…</p>
<p>Well, that's the $64,000.00 question isn't it? I'm not a geologist nor do I pretend to be, even though I stayed at a Holiday Inn Express last night (Inject laugh track here).</p>
<p></p>
<p>Seriously, I couldn't even begin to answer that for you. Except to say that the oil and gas companies make money be extracting minerals from your property. I would think that sheer greed would prevent them from ruining the other strata and making it non productive. I think that if they had even the slightest hint they were doing something like that they would pause to think about loss of future revenues from those potentially ruined layers.</p> Understood - but what keeps t…tag:gomarcellusshale.com,2014-08-29:2274639:Comment:6173132014-08-29T17:10:06.346Zal raptoriahttps://gomarcellusshale.com/profile/alraptoria
<p>Understood - but what keeps them from ruining the so-called unused subterranean assets - especially in light of the experimental technologies they are bound to be using over the next say 100+ years????</p>
<p>Understood - but what keeps them from ruining the so-called unused subterranean assets - especially in light of the experimental technologies they are bound to be using over the next say 100+ years????</p> I highly doubt you will EVER…tag:gomarcellusshale.com,2014-08-29:2274639:Comment:6169112014-08-29T17:02:34.004ZTomhttps://gomarcellusshale.com/profile/Tom783
I highly doubt you will EVER find a driller to give you a deal like you want. They are not going to sign a lease that requires them to pay royalties on 100 acres if only a small portion is included in a drilling unit. They will pay royalties ONLY on the portion of the land that is included in the pool.<br />
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You could demand something along the lines of all or nothing. Where they would be required to use all of your land or none of it. But I think you would have a hard time finding a company to…
I highly doubt you will EVER find a driller to give you a deal like you want. They are not going to sign a lease that requires them to pay royalties on 100 acres if only a small portion is included in a drilling unit. They will pay royalties ONLY on the portion of the land that is included in the pool.<br />
<br />
You could demand something along the lines of all or nothing. Where they would be required to use all of your land or none of it. But I think you would have a hard time finding a company to agree to something like that. And you might very well be shooting yourself squarely in the foot by demanding such a thing. They need the ability to form pools as the leased acerage permits. This is what I have been told…tag:gomarcellusshale.com,2014-08-29:2274639:Comment:6171282014-08-29T16:16:45.259Zal raptoriahttps://gomarcellusshale.com/profile/alraptoria
<p>This is what I have been told by counsel:</p>
<p>By definition, unless otherwise specified in the Agreement, 60% Pugh Clause is not a pure Pugh clause. </p>
<div>A Pugh clause, in its strictest legal form, releases all non-productive strata (vertical) <strong>and</strong> acreage (horizontal).</div>
<div>Again, a 60% Pugh clause is directed at only the horizontal portion and does not include the vertical..</div>
<div><strong>If the producer includes 60% or more of your property in a…</strong></div>
<p>This is what I have been told by counsel:</p>
<p>By definition, unless otherwise specified in the Agreement, 60% Pugh Clause is not a pure Pugh clause. </p>
<div>A Pugh clause, in its strictest legal form, releases all non-productive strata (vertical) <strong>and</strong> acreage (horizontal).</div>
<div>Again, a 60% Pugh clause is directed at only the horizontal portion and does not include the vertical..</div>
<div><strong>If the producer includes 60% or more of your property in a production unit then they are permitted to retain the entire property.</strong></div>
<div>This allows them to tie up the entire property without producing the entire property.</div>
<div>There isn’t anything good I can say about that!</div>
<div>In my opinion, a lessee should get to keep what they produce, otherwise it needs to come back to the mineral rights holder (landowner).</div>
<div>Now, back to my original topic here - does ANYONE have or know of a lease agreement in which a percentage of the acreage used in a unit COMMANDS the producer pay royalties on the entire acreage or at least an agreed upon percentage of the unit. My question is ENTIRELY different that the aforementioned "60% Pugh Clause!" Thanks.</div> My Eclipse lease was negotiat…tag:gomarcellusshale.com,2014-08-29:2274639:Comment:6170942014-08-29T15:40:09.672ZTomhttps://gomarcellusshale.com/profile/Tom783
My Eclipse lease was negotiated with a 60% pugh clause as well. No landowners group here either. They were going to include a verticle pugh as well, but I didn't care for the wording of the clause so I had it changed to a depth restriction instead.
My Eclipse lease was negotiated with a 60% pugh clause as well. No landowners group here either. They were going to include a verticle pugh as well, but I didn't care for the wording of the clause so I had it changed to a depth restriction instead. No I am tied to any lease gro…tag:gomarcellusshale.com,2014-08-28:2274639:Comment:6168292014-08-28T15:39:29.239ZPuzzledhttps://gomarcellusshale.com/profile/Puzzled
<p>No I am tied to any lease group.</p>
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<p>I guess I feel a little better after what Yall say concerning percentage.</p>
<p>And for the record it is not principal that keeps me from signing the 60 percent it is knowing that I can change my mind if I cant find a better deal.</p>
<p></p>
<p>No I am tied to any lease group.</p>
<p></p>
<p>I guess I feel a little better after what Yall say concerning percentage.</p>
<p>And for the record it is not principal that keeps me from signing the 60 percent it is knowing that I can change my mind if I cant find a better deal.</p>
<p></p> The SURE group lease included…tag:gomarcellusshale.com,2014-08-28:2274639:Comment:6169312014-08-28T15:20:39.438ZMike hhttps://gomarcellusshale.com/profile/Mikeh108
<p>The SURE group lease included both horizontal and vertical PUGH clauses.</p>
<p>The SURE group lease included both horizontal and vertical PUGH clauses.</p> Utica watcher.... Can you tel…tag:gomarcellusshale.com,2014-08-28:2274639:Comment:6166722014-08-28T09:26:01.618ZJimmy Wilsonhttps://gomarcellusshale.com/profile/JimmyWilson
<p>Utica watcher.... Can you tell us a little more about the Batesville Group ?</p>
<p>Did they settle ? Do you know the terms ?</p>
<p>Do you know who put the group together ?</p>
<p>Thanks</p>
<p> </p>
<p>Utica watcher.... Can you tell us a little more about the Batesville Group ?</p>
<p>Did they settle ? Do you know the terms ?</p>
<p>Do you know who put the group together ?</p>
<p>Thanks</p>
<p> </p>