Pooling and Unitization

I am in a 30+ year old lease 12.5% etc. The old lease does not include pooling and unitization. A drilling company now has the lease for the utica shale. The drilling company would now like to amend the lease to include pooling and unitization. What are pooling and unitization rights worth? I have been offered $1500 an acre. It appears that they would not be able to drill without this amendment. What have others been offered or sign for?

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Permalink Reply by Bill Clark on May 13, 2014 at 8:43pm
In the lease but crossed out.
1xc6tw2xj1fwlPermalink Reply by 1xc6tw2xj1fwl on May 14, 2014 at 2:11am

You kind of have two options.  You can sign the amendment to have pooling added which would allow your property to be included in a unit - if that ends up being the case.

Option 2 - Don't sign and guarantee you will not get in a unit.  I would think that only a fool would take option 2.  Just make sure they don't add royalty deductions.  

Technically, there should be no payment involved for signing an amendment.  But just another reason that oil and gas companies are having difficulties turning a profit.  Pretty soon this will all be a thing of the past.  Greed can only clash with greed for so long...I say it will be a thing of the past only because the USA is the only country in the world (with the exception of one province in Canada) where landowners own or have any say in activities involving mineral rights.  Shale plays like this are being discovered all over the world, many put the Utica/Marcellus and all of the stuff deeper that everyone thinks is going to make them billionaires to shame.  Worldwide, the government gets paid for drilling and they're much more cost effective than the people looking for "what's fair."

Permalink Reply by Bill Barnaby on May 14, 2014 at 1:40pm

Obvious land man is obvious, telling him to sign a 30 year old lease for nothing. That vertical well lease is as good as dead. THEY WANT YOUR MINERALS, make them pay!

Permalink Reply by J.D on May 14, 2014 at 3:32pm

Amen.

Permalink Reply by rmc on May 15, 2014 at 11:34am
Ha ha No the large Governments form business wholly owned by them then take on Joint ventures with the largest Oil companies.
Permalink Reply by see0706 on May 14, 2014 at 3:26pm

Does anyone now if there is rich, wet gas with lots of oil in Wills Township, Guernsey County??

Permalink Reply by evan on May 15, 2014 at 11:56am
Some of the wills township wells have done very good

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