Leasing and pooling question

Talisman's Declaration of Pooling and Unitization (DPU) Plat shows our property being part of a rectangular unit but we are not listed in the summary of leases that goes with the plat, and have not been contacted by Talisman to lease with them. There is a well pad--no drilling yet--in place in the unit. We are currently unleased-- must Talisman offer us a lease?

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Permalink Reply by Billy Park Whyde on June 28, 2013 at 3:58pm

Might be your property is already under a lease, perhaps a former owner had leased. Unitization they can do at their will depending upon how former leases were drawn up. Forced pooling on the other has to be approved by the ODNR and I would think you would have been notified. I'd research into it but I do not think the O&G will be doing what CHK did on the Buel well!!!

Permalink Reply by Michael Oakes on June 30, 2013 at 1:45am

The property is not leased because our lease with Chief just expired about 10 days ago.  Given the way the unit is mapped the driller would not be able to reach  pooled areas without going under our property.

Permalink Reply by rmc on June 30, 2013 at 1:52am
In some leases just being pooled in a unit would be enought to carry the lease over into the production phase of the lease.
Permalink Reply by Victoria Smith on July 1, 2013 at 5:27am

I agree with rmc - check the language of your lease - it may say the lease is "x # of years or until the lease is drilled or pooled."  When you say your lease is not listed on the lease summary that goes with the plat,  it may have been included later when Talisman filed an amendment or a Declaration of Pooling.  The plat is filed with the DEP, but the pooling declaration is filed with the county recorder of deeds.  Check your lease language and if you determine your lease contains the "drilling or pooling" language, you will want to check for any plat amendments or a pooling declaration that has been publicly recorded. 

Permalink Reply by Billy Park Whyde on June 30, 2013 at 2:01am

You might want to see if they didn't flip your lease. Its possible they flipped it and Talisman's didn't pick up on the expiration of the lease date.

Permalink Reply by Tom R on June 30, 2013 at 2:09am

You might be able to go on Landex and see if your lease was assigned before it's expiration. Since you say it was not included in the list of parcels on the unit declaration, I can see why you would be concerned, but unit paperwork can be ammended for a variety of reasons, I'm in a unit that had a couple of amendments "to correct scriveners errors" (wrong parcel ID  numbers listed against owners names, etc.) so you may be in the unit after all.

Permalink Reply by Kathleen on June 30, 2013 at 3:26am
I agree with rmc.
If the pad is done that means this unit has been in the works for months. And because of that your lease would not have expired, it would have just become HBP.
So many leases can just be held by a bulldozer getting ready to move dirt for a pad road or a pad. In PA a bulldozer was placed at the roads edge to stop a bunch of leases from expiring at midnight. That case went to court.
Newer leases have production numbers that need to be met before land can be HBP.
If you do not have a paugh clause than all the land is now HBP.
I would be curious though why my parcel number was not included in the unit paper work.
I looked up a few declaration of unit polling in my county courthouse a few months ago, and it was common to see a few revisions on them over a couple of months.
Permalink Reply by Billy Park Whyde on July 1, 2013 at 5:37am

If you would be so kind as to let us know what you find out out would be a tad bit more education for us. TY

Permalink Reply by Dan on July 2, 2013 at 12:20am

What state is this unit in? OH, WV, or PA?  And you are saying that you know for sure that you own your mineral rights, and that there is no prior lease in effect from years ago?

Permalink Reply by Michael Oakes on July 2, 2013 at 4:39am

The state is PA.  Yes, I know we own the mineral rights because we leased it to Chief five years ago and of course our deed says we own them.  Our old lease indicated that we had to have a well or be in a pool with a well for the lease to continue after 5 years.  Chief made offers to us to extend the lease over the past several weeks but we could not come to an agreement.  By the way, the Chief people related (before the lease expired) that they themselves had no knowledge that we were in a pool.  

 

Thanks for all of the comments and keep them coming.

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