Seven Families in Beaver County Fighting Chesapeake Energy - Named In Suit Filed By McRoberts Family

http://www.wtae.com/team4/30774631/detail.html

BEAVER COUNTY, Pa. -- Seven families are  fighting to stop a natural gas company's last-minute drilling plans on their  land before the company's lease expires next month.

The McRoberts family woke up Tuesday morning to find tree-cutters lined  up along their property in Darlington, Beaver County, getting ready to clear a  quarter-mile path to a proposed gas well site.

"Four generations of McRoberts have farmed this land, and we pay the  taxes and they're going to tell us what they're going to do? And they lied from  the beginning," said property owner Susan McRoberts.

When Channel 4 Action News' Jim Parsons went to the McRoberts' property,  the tree-cutters left without cutting any branches.

"Chesapeake (Energy) doesn't even have a permit to drill this well, and  yet they want to come in here and cut these folks' trees down without any  compensation," said McRoberts family attorney Steve Townsend.

Townsend filed a lawsuit Tuesday against O & G Investment of Ohio,  which signed gas leases with the McRoberts and six other families in 2005.

O & G sold those leases last year to Chesapeake Energy, which is also  named in the suit.

The suit accuses O & G of "intentionally and fraudulently  misrepresenting to the plaintiffs that (it) would reasonably develop the mineral  resources underlying their land."

"They promised these people the world and didn't pay a dime, and took  their land and held it hostage for years," said Townsend.

With the leases set to expire next month, the McRoberts are trying to  stop Chesapeake from conducting a last-minute drilling operation.

"It's too late, too late. Listen Jim, I couldn't rent a car for $200 a  month and not pay for it. They've had thousands of acres of land here that  they've not paid one cent for and they've held it seven to 10 years and haven't  paid anybody any money," said Townsend.

Chesapeake Energy has not commented.

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0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on April 21, 2012 at 4:03pm

Hi Glenn,   sorry you do not have royalties yet coming in.  And yes it is good to have the drill pad there...but not when it is put there just to hold the lease indefinitely....it is only good to put it there for production within the lease terms for the good of the Lessor as well.    I do hope that you have a better lease than I and some others when it comes to a well shut in that is capable of production and also when it comes to contract clauses.   have you read this yet?   take a look at that clause, the extension clause.

http://gomarcellusshale.com/forum/topics/extension-of-term-clause

I found that one particular oil company did go into some counties and used the early contracts asap and formed large (and I do mean large) units...planted one vertical well on a pad and on permit they have a horiz. not installed.  I called the DEP about those permits.  So for the oil company to cap a well that is capable of production but use the clause of a well installed that is NOT capable of production...the difference is the well is capable but the pipelines are not in with no idea when...and leases are expiring.  You see these oil companies cleverly designed the clauses to extend the contract...they never meant it to be only a five year contract....but they are refusing to renew with a pay out again of bonus....which keeps the owner from making any money yet the drill -pad and equipment is there.  ...and at todays rate many would be making much money compared to 2005.

How many would understand if the local municipality installed a traffic light in the middle of a rural county without any roads to that traffic light...only to sit that traffic light there for many years  and it used taxpayer dollars..they would complain.  Yet it has been almost 3 years since the drill pad was installed in one unit I know of....and no pipelines yet).   To say that the oil company wasn't aware of what they were doing would be about the same as the example I just stated.

here have a look at one county situation because of the vertical well

http://gomarcellusshale.com/forum/topics/held-by-production?comment...

http://gomarcellusshale.com/group/tiogacounty/forum/topics/shell-he...

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on April 21, 2012 at 5:20am

The question of reputable business tactics used by these oil companies all falls into the following category:

  1. Having a contract with unexplained and 'catch all' clauses which lead to confusion of understanding.
  2. mixed with a land agent whose goal has been outlined to steer the landowner into signing without really understanding the clauses as stated.

whether there be bonus appropriate or not or royalty that is decent all falls into the category of understanding the above of the clauses and the verbal explanations by the land agent while the landowner asks their questions...especially when the verbal premise is that the contract is indeed renegotiable at the end of the primary term if there is no production of royalties.

So since the actual 'dishonest tactics' which lead to disgrunted lessors is the actual understanding of the contract, the verbal representation of the land agent, and the implied understanding of when the contract actually ends.  

So if a landowner didn't get very much in bonus upfront or didn't do well with the royalty amount...it is compounded when the above situations also occurred leaving them with a non re-negotiable lease extending into another term of lease time with no payments for royalties if the well or whatever hook was used in a clause to extend the lease  was done that is non producing in monetary means to the Lessor.   That indeed is the situation and isn't happening as much because it is known now to avoid contactrual negotiations with these people without proper representation.   

Very simply put it should required by law that anyone signing an gas/oil lease agreement with any one should have to have a lawyer help the Lessor to interpret what they are signing.

 (i say required cause the land agent in my situation talked my dad out of using a lawyer or land group and that is why it shouldn't be an option to waive which may result in a loss of millions of dollars)  (how many of you have trouble sometimes getting your parents to agree with you yet a stranger like a landman can convince them to do what you didn't want them to do?..so you see there is some problems when dealing with those of elderly ages if they are not comprehending as well and don't accept help easily yet you are the one ultimately that will inherit the lease eventually and your children and their children)

 It will save on our court system to require that a lawyer be retained (they do that in some situations in probate court so there are some legal issues that require a lawyer to be involved) and help the Lessors to actually enter into leases with representation with these companies who consistantly and intentionally send land agents to convince people to sign contracts that only can be fully understood by a qualified gas/oil lawyer or a member of the gas industry who understands these 'hook and sink' contract clauses.     anytime you have a company that is presenting a contract that has clauses intentionally written to be a 'hook' clause to extend the contract indefinitely then Buyer Beware....yet who would have known that such reputable USA companies would have sent such?

Now of course if the oil companies would go to more disclosure and a standard contract that doesn't have wording different on many contracts under the same name of the clause....then it may be that the average landowner who understands the process could sign without a lawyer...otherwise NO.

My final opinion about the matter... most know now in their communities not to engage in a contract with these oil companies without a good landgroup represented by a lawyer or qualified consultant or a good oil/gas attorney that indeed understands the contract clauses.   Thereby equip oneself with such and with a good pocket recorder or use your camcorder or cameraphone w/audio  but obtain permission to record the verbal discussions with the land agent but do include that the recordings are  a permissable  part of the contract on the contract and the authorization to do so.   If the company and the land agent tell you that isn't possible then you have to wonder what they are wanting you to do if you cannot keep what they say to you on a recording when many land group meetings are even recorded and many other meetings even in their own professional atmosphere

If I had recorded the conversations with the land agent and my dad then I could present those as proof that he was lied to and intentionally directed to sign the lease with the premise that he could just renegotiate either the same bonus or the market price at the end of the five years if no production with paying quantities.  The clauses cleverly written and not fully understood by him did not leave that option entirely...yet the lease primary term  isn't finished but my dad is.

Permalink Reply by mark o on April 21, 2012 at 6:00am

if the law REQUIRED us to use a lawyer when dealing with leases....then why not when buying a car..or or shopping for food...hell we could all have a lawyer to make sure we get the best deal on everything...this is a box that should not be opened!!!!!....p.s.  i signed the same bad lease....i was stupid...i am fighting chk, but not with this group.  i don't think i will win but i will try.  if i lose i have nobody to blame but myself.  chk deals with this all the time and most of the time they win.  just part of the business!

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on April 21, 2012 at 6:11am

Hi Mark, 

How many times at this forum and others do you see even in bold letters'

"USE a gas/oil lawyer to do your lease"  "don't attempt to do the lease without a good gas/oil lawyer"


many times...over and over.   And then when someone states what a bad deal they got...what's the first thing someone writes here?   WEll, you should have used a lawyer!   that was absurd that you thought you didn't need one when dealing with these oil companies"


so if the state of Pa. or other states involved in the marcellus do not start overseeing better in these contractual dealings with people (cause the oil company does have a strange and unusual way of doing leasing) then it should be a law that you don't enter into a contract with the oil companies without proper representation to protect the ignorant and the elderly.   Your greatgrandmother who couldn't drive a car wasn't allowed to drive one without a driver's license...was that stupid...No.    To avoid people signing into bad deals and being taken advantage of and their families lands....it would be best to only have proper representation.

I know because my dad was going to use a landgroup with a lawyer but the land agent talked him out of it cause he was the landagent for the neg. of that same landgroup...but then the agent left and the new agent didn't use the landgroup contract as promised though on looking at the clause names they looked the same as promised...and dad was dying and he was tired of reading contracts over 4 months...he was depending on the land agent to do as promised.

http://gomarcellusshale.com/forum/topics/what-would-you-do-just-cal...

Permalink Reply by Billy Park Whyde on April 21, 2012 at 6:10am

For what it is worth when it would be mandatory to hire an attorney where would it end? Every time we start mandating it cascades into even further erosion of our rights as  Americans.

  Along the way in the formation of this country we have frowned upon acts that big business has perpetrated upon the public. As a result we had to create anti monopoly laws thanks to STANDARD OIL, we had to create a Public Utilities Commission for orderly commerce, protective measures both in safety, reliability and consumer protection. Major corporations created the dreaded EPA due to their greed and irresponsibility. Love Canal ring a bell? Automotive industry, used car dealers manipulating odometers.  Even OSHA had to be created due to the lack of concern for employees being killed and maimed. MSHA had to be created to save lives over the greed of mine owners.

  None of this had to have taken place had businesses taken upon themselves the responsibility to have policed themselves. Perhaps the O&G might consider this and take it upon themselves to draw up ethical leases, to H with the attorneys that try to legalize theft through deception, put a degree of honor upon their business before the government has to impose even more control upon them.

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on April 21, 2012 at 6:23am

 Perhaps the O&G might consider this and take it upon themselves to draw up ethical leases, to H with the attorneys that try to legalize theft through deception, put a degree of honor upon their business before the government has to impose even more control upon them.


Now that's a great way to phrase it Billy...and because that has needed done for almost a century and the O&G's are just now starting to respond in a more positive fashion (putting production process videos on youtube by Chesapeake...i think that is postive and that is new from like 2010)...signs of improvement.   but meanwhile something still needs done to help the ignorant and elderly....so what can a community do to help these?    should they send letters to them telling them to join landgroups or utilize a attorney?  You see the impact of the drill rig there isn't just about one owner's property it does affect the entire community.   So if one landowner grants away the use of their property for storage and retention ponds for chemicals in fracing (waste) ...and the owner wasn't even aware that was in their contract and might have said NO....who was there to tell them what that granting clause all meant when the land agent just said drill pad and road to it....they should have brought a video in today's age as part of their tool lease kit and told the people this granting clause includes all this for that bonus money and royalty...and could possibly use up your entire 26 acres excluding the 200 to 300 feet from your house...great deal huh?

you know when people that do developments (such as shopping centers, etc.) when they approach an owner to purchase the property the owner can find out about the plan...and even go to zoning meetings, etc.......that is if it is disclosed what the intentions are in purchasing or leasing.    There is a process that our communities have when large corporations are entering into a community where impact will eventually result by such....those rules/ordinances/guidelines may seem appropriate or inappropriate but there are some good qualities of the 'watchdog' approach to such.   these oil companies came in and started immediately signing up the leases and now the communities are feeling the impact and saying ...'we were caught unawares"  and of course those who pocketed millions of dollars have either moved or say 'what' s wrong?".

Pls everyone...stop just looking at the royalties which may or may not happen in you or your families lifetime...look at what you have granted them in the granting clause for perhaps forever.   It is because of this I say it is best to have a reputable gas/oil lawyer or a very qualified land group of experts.....because it is our land ...we are Americans.   We should care if the land agent pilloged the ignorant elderly woman that didn't have anyone to help her...even if the communitey or state has to require that the contracts be reviewed by a competant representative before they can be considered approved.   But something should have been done locally years ago...but it wasn't.   Now though it is important as there are still some that do not know how to deal with these oil companies even with the contracts they have.   So I mention to make it law to have an attorney with each contract....is there any others suggestions?  And what to do to help those that are disgruntled and confused over what they have done with their existing lease?   can the community leaders help and come up with a solution?

Permalink Reply by mark o on April 21, 2012 at 6:36am

i know a women who signed the same time we did and used a lawyer..her lease is worse than yours and mine!!!   there is no easier answer here.  we don't always win in life.  this is the way our system work...may not be perfect..but i think it is still the best system on the planet!!!

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on April 21, 2012 at 6:41am

Mark...that is why my dad was hesitate...he lived in another state and did not know which lawyer could understand these things and did not know one in his county where the land is....so the land agents offer to use a land groups contract sat well with him...til it swapped and he didn't know it.  So not all lawyers are qualified either.

Well we can see that our Maker may think we are all heading in the wrong direction...

when we humans like the money more than standing for what is right, in caring about one another.

if the little old elderly woman signs into an impossible lease and something like this ends up in the community

http://www.marcellus-shale.us/seeps_leaks_spills.htm

http://ohiopollutionpictures.com/

....it now becomes everyone's problem...when it wouldn't have been a problem if the littly old lady had to have used a lawyer or a sightoverseer by the local community to make sure her contract didn't leave the community with a problem>  I am tending to think that the community should have a task team that works in the overseeing of such if one doesn't want a lawyer retained...such as what is done in the permit process to have someone of skill and expertise to review the laborors work.    something needs done..rather then hearing of all the woes that people are encountering....just to put a check and balance in place as more understand how this has affected their communities.

Permalink Reply by Billy Park Whyde on April 21, 2012 at 7:04am

Mark we can try to make it better, just about every government thought they had the best system be it Greece, the Roman Empire but some where along the line it fell apart they never improved. With the latest news of what the UN wants to do it should put all Americans in fear of our system! 

Permalink Reply by Billy Park Whyde on April 21, 2012 at 6:45am

USA for the most part though this is of the concern of a land owner. I detest it when a small city a village can interject their control upon my rural property. America is becoming a place of mob rule where in some cases 3% of a populace has created ordinances that has had devastating impact upon property values of rural land owners and private business  and organizations (Case in point smoking bans in some areas, the NY moratorium ban on fracking) 

 In Pa we see some communities that are complaining about the new impact fee. Could it be politicians in those small areas are afraid that payoffs insider trading for their own gain maybe effected?  I want less government, as a Nam vet it irks me to see our freedoms be eroded by the lack of personal responsibility of one's self, but that also applies to the self responsibility of corporations also. 

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on April 21, 2012 at 6:55am

Billy,   the whole leasing gambit just wasn't done right....and that is why there is a mess for the landowners as they now have the oil companies who didn't do some of them right now among them.  Yet now the oil companies have the leases....they now are concentrating on the litigation that is arising against them (and why cause of their poor quality leasing arm)..

perhaps they will learn eventually.    I also like the ability of the land owner where they aren't shakeled into too many rules and ordinances esp. those that don't make any sense....but Billy someone out there is ignorant or old or both and doesn't necessarily even know how to use the computer...they need someone to care about helping them make the right decision.   Not all landowners know what they are doing in these situations...but the result of a bad decision could become the community problem...and with a lease clause allowing it...it could be impossible to overcome it.  These are rural areas of a pristine environment that could have lasting impact of a lower quality of life among all though more emphasis in signing well worded quality contract leases could overcome much of any problems in that area.   How is it that it is not a concern what one neighbor signs until a unit is formed and then the leases work more again as a unit then individual ...just read this and he mentions in his list there about speaking to the neighbors...

http://gomarcellusshale.com/profiles/blogs/the-gas-company-wants-to...

What I am saying is that instead of waiting til in units and if any problems arise and then talk about the leases...why not be smarter and help one another in understanding your leases before they are signed?   If some don't want someone else to make as much as them in their bonus by telling them your offer...that says something about them and how much they do not care for their neighbor to profit....

the attitude of some of 'I can do better than you' with my contract...sucks.  they end up in units and when a problem arises they say, 'why did you sign that?" you should have asked me...    we need each other to help overcome what these oil/gas giants have created that started all this leasing without much desire to do each landowner right.

Permalink Reply by WLW on April 21, 2012 at 7:45am

 

 

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