Hello,

My question is:

We had a lease with Gulf Port Energy on our land (20 acres) back in 2011 and no drilling ever occurred, and never happened for years. We did get our bonus money and was waiting for them to drill and hoping for royalties, someday. Then Chesapeake took over and we thought they would lease with us and it never happened. We called, but never got a lease, but, they said they would re-lease just before they were ready to drill, that didn't happen.  Then they sold to Encino Energy, and they started drilling the Deucker well, in Harrison County Ohio, that we are in. We were waiting to hear from them because we know they are drilling, and figured we would get a lease, as time goes on. Well, our neighbors said the royalty checks are looking pretty good.  We know they took out a permit and that they would be drilling under us to the road where our property ends. No question, we are in the pool.  I called Encino Energy and talked to the land man. He said there was some confusion, there were some old leases and that they would get back with me when they could get better clarification on what is going on.  A couple months go by and a few days ago we just get a large check in the mail from Encino Energy.  I call the land man and ask why we received a check because we don't have a lease agreement? He said there is an old lease from 1973 (48 years old) that they are going to adhere to , which is not a very good lease for us.

My question is, can they do that to us or should there be a new lease with us?

If anyone can help us with this we would appreciate it. 

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Speak with more than one attorney. Share your situation and ask questions. An initial consultation should be free of charge. Try to do it in person rather than over the phone so that you can better evaluate how they handle themselves.. If Encino doesn't have a valid lease and they drilled under your property you may be looking at damages, not just royalties. In that case you want to make sure the attorney has solid litigation experience and not just contact experience. Ask them for references (and check the references).

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