Selling your Utica Shale . What about the royalties ?

Has anyone else seen the " getting paid sooner " leases floating around ?

They are offering 5yrs and a 5yr. renewal but after the renewal period you loose your Utica shale no matter 

if they drilled or not -- no time limits .

That's not a good deal considering if the lessee has the surface no one can drill threw the 

lease holder without there permission . But i'm sure they will help the landowner out ((( NOT ))).

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Permalink Reply by jonathan M. on December 9, 2012 at 4:59am
I'm confused? You lose yor utica rights at the end of lease? Please explain in more detail. What company is making this offer? What county is this in?

Thanks
Permalink Reply by time will tell on December 9, 2012 at 6:48am

Well , it is written like this :  they give you X amount of signing bonus for the

1st. 5 yrs. with the option of a 5 yr. extension if within the 10 yr. term the  company hasn't drilled a new well they will release all of your formations except the Utica .No mention of future royalties . If the lessee has all the right's including the surface you are bound .

Anyone who would like to  lease any other formations would have to deal with 

the driller-lessee .

It would be like the blocking play that the coal company enjoy's and profits from .

So in conclusion if you are ok with selling your Utica Shale for the signing 

bonus then go for it .

This cat and mouse game they play really sucks and costly to those who

" go it alone " . 

Remember they are out to get what ever they can with little reguard to us PERIOD !

Permalink Reply by time will tell on December 9, 2012 at 6:51am

Jonathan , are you a land owner ?

Permalink Reply by jonathan M. on December 9, 2012 at 8:24am
Sounds like a terrible deal. Yes I am a landowner I have some acreage hbp and some that I leased last year after searching far and wide for a qualified attny to draw up lease.
Permalink Reply by time will tell on December 9, 2012 at 8:31am

Jonathan , it depends on your situation . This could be a blessing if you need your money right now .The way I understand it payment comes quicker .

Everyone needs to find good legal help from a trusted firm .

Permalink Reply by jonathan M. on December 9, 2012 at 8:34am
How would this be different than a normal lease that pays you a bonus upfront as well? Guess I'm confused still...
Permalink Reply by time will tell on December 9, 2012 at 8:54am

Well how I understand it they would speed up the waiting period with this clause  for the bonus money , the reserving the Utica formation would give they drillers as long as they would need - no time restriction as there are in the standard leases to drill .You might wait 15- 20 years for a well or longer .

Permalink Reply by jonathan M. on December 9, 2012 at 8:57am
If payment time is only difference this is a terrible deal. Everything is negotiable, the bonus, royalty, terms of the lease, and the length of time they have to issue payment.
Permalink Reply by time will tell on December 9, 2012 at 9:00am

This is why I posted this thread .

Permalink Reply by jonathan M. on December 9, 2012 at 9:16am
People need to stay as far away from this deal as possible. Please tell all you neighbors and anyone you know. What company is offering this?

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