Jamestown resources is an affilliate company owned by Aubrey McClendon
Aubrey got 2.5% each Chesapeake well. If Jamestown Resources is involved, beware! In order to get his 2.5%, he has to pony up 2.5% of the costs of each well. To do that, he uses Jamestown Resources to take loans out, mostly from EIG, to put up his share of the drilling costs. That means he uses your land and anyone in the drilling unit for collateral and takes an "open ended mortgage" out on your land.
That only becomes a problem if you want to take a first or second mortgage out on the property while he has a mortgage on it, or if you want to divide or sell your property.
How can Aubrey take out a mortgage on land that is not his?
Thanks for the reply. How would that be a problem if you wanted to take out a mortgage or sell your property?
The loan is recorded as an "open ended mortgage" in the county Recorder of Deeds office. EIG MANAGEMENT COMPANY, LLC is the company he gets the loans from. How does that affect your property. If you want to take out a mortgage or sell your land, the loan is recorded in the county office. If there is an open ended mortgage on your land, then the bank will not want to loan money on it for either purpose. They are not going to lend money on land that is already mortgaged to the max.
Thanks for the info, I had no idea that these oil and gas mortgages could be take out and how it could effect the land owner. Are these oil and gas mortgages taken out often?