Just got word that Shell is not leasing anymore currently at the moment.   Word is they will be back leasing at some point but currently out of money no more budgeted etc.... Now a bunch of land owners are left with signed leases that are not being paid/honored.  Just another example of corporations doing what they see fit promising people one thing and doing another.  Just goes to show the contracts everyone sign mean nothing other than locking you in if they choose to do so.  So basically if you have a lease with Shell and have not been paid you are not going to get paid at least at this point. 

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Shell is neither a fly by night organization nor one prone to not fulfilling contractual obligations.  The statement that you got word that "Shell is not leasing anymore" likely means that they won't be entering in to any new lease arrangements.  If they have already signed leases that mandate payment unless subsequent title examination reveals title problems then the only "legal out" is bad title... running out of budget isn't a legal excuse unless there was some extremely broad language contained in the documents that these landowners signed that allowed for Shell to cancel at any time, and for ANY reason (highly unlikely in my opinion). 

Well thats what is going on.  No more budget = no payment.  You are correct "won't be entering in to any new lease arrangements" as well.   I personally know 3 people that shell is not fulfilling their "contractual obligations" with due to budget issues they are being told.  Their leases were signed back at the beginning of this yr Jan-Feb.  At this point they are now "prone" to not fulfilling contractual obligations to quite a few people - unfortunately. 

If true, that is extremely unfortunate, ill conceived and possibly opens Shell to legal liability.  I would check the document you signed with them and see if they did provide for an escape clause for virtually any reason versus only escaping due to title problems.  If you wish to attach the document you signed to your next post I would be more than happy to review it and provide feedback at no expense to you (reviewing legal documents is my profession).

Crazy Idea.... an idea nonetheless. If this is true and I doubt that it is.

Call another company.

They will NOT be open to any legal liability, they didn't start writing these leases yesterday. Everyone should stop making statements unless they truly have knowledge of the subject. We are all new to this, energy companies have been at it for decades. 

If Shell does not tender payment as specified within the terms of the lease ($$$ within so many days of siging), execute an "Affadavit of Non-Payment", have your signature notarized, and record the document yourself at the Courthouse.  This will invalidate the lease.


Not the case up my way.  I know of hundreds of acres not being paid on - again at least at this point. 

Well I signed with Shell I February. My 90 banking days will be up on June 28th. I have contacted Shell on different ocassions and have not been told anything negative as of yet.  Last conversation was Monday. Am I worried about not getting paid? The thought has crossed my mind but I have had nothing but good experiences with Shell so far. We will se on the 28th if my opinion changes.  I live in Lawrence County, Washington Twp. Which is Volant. 

There is always a lot of "A friend of mine said " or "I heard". I'll believe it on the 28th. To be paid or not to be paid, that's the question. 
Also, I signed with LONG CONSULTING.  

Always look for language in the lease itself allowing the company to cancel or surrender the lease at anytime. Your Order of Payment should specify a time frame for payment. If that payment is not made in that time frame you as the landowner may have to then send a certified letter to the company to cancel the lease due to non-payment. Again, read the lease to be sure that the company has not allowed itself a 60-90 window to dispute or resolve an issue that arises between Lessor and Lessee. You should with out a doubt check the county court house to see if your lease or a memoradum of lease has been filed. If one has and you have not been paid on time then there is a huge issue. The company by filing that lease or memorandum now has interest in your property filed on record without payment. And there interest will remain if you do not hound them to cure the problem one way or another.


A company like Shell really has no acquisition budget. They do decide where they will and will not spend there budget and it seems all gas, wet and/or dry has been put on the back burner of late.

My understanding is when Shell or any other company issues a bank draft, their bank account MUST have the funds available to cover that draft. I think if you have a signed lease, chances are you will be paid, tho some may not for various reasons.


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