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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Permalink Reply by Robin Hood on April 18, 2012 at 1:04pm

Chk has 1.7million acres which is how many leases? At 100 acres each it's 17,000 leases. Of course they'll try every trick in the book to keep as many of them without paying another cent to the landowner. Like you said it's business.

On the other hand, if your a landowner with a lease that is about to expire, don't assume if you receive a letter informing you that your lease is being extended or your held by production, or commencing drilling operations that your don't stand a chance to renegotiate . That is what the oil company wants you to think. Read your lease, understand every word. Dissect it. You may find in their haste to secure a  renewed lease they overlook something.

 

Permalink Reply by Frank Nesmith on April 19, 2012 at 8:29am

They never once denied Chesapeake access to the land. The guys came to cut the trees and got spooked by the news cameras and left. There is a whole lot more to this lawsuit. Chesapeake even admitted to them that the leases were invalid, so they tried their best to get them a top lease to sucker them in. These folks didn't get one thin dime, nor did they get any payments over the years to hold the property if it was not drilled on, so the lease is invalid. I will admit that proving that in court won't be easy. What disturbs me are first the lies about not being let on the land, but then Chesapeake defying the Cease and Desist Order from the Township. It's not buyers remorse, for the most part. I think there may be one litigant who would welcome a drill, but not the rest of them and certainly not from Chesapeake after all they have done to the families involved.

Permalink Reply by Frank Nesmith on April 19, 2012 at 8:32am

ps- The story about Aubrey McClendon is not over yet. Four major law firms announced just today that they are looking for litigants and more information on Aubrey's mortgages on the properties. And a piece of information was uncovered today that, although not huge, but will further show everyone what a piece of crap Aubrey is.

Permalink Reply by Finnbear on April 19, 2012 at 3:27pm

You mentioned it so spill it. What is it that makes Mr McClendon such a piece of crap?

Permalink Reply by craig on April 19, 2012 at 9:22am

McRoberts most likely signed a lease similar to what I did with the same company and roughly the same time period. If this is true, then they were paid a small amount in bonus money. The lease was only good for a primary term. The big thing with those original leases was, and still is, the unit/pooling clause. Regardless of why they tell you you need to sign a new agreement, it basically boils down to that. They have been trying to get everybody to sign the new unitizing/pooling addendum so that they are more easily able to HBP lots of acreage with just one horizontal per unit. The old leases must not pass mustard when it comes to large units and being HBP.

CHK is rushing to get as much acreage drilled and HBP  before all these old leases run out ( I don't blame them) and lots of folks are scratching around for any possible way to hold off any drilling activity or get their lease invalidated, so that they can re-up at current rates. It is as simple as that. 

Permalink Reply by Frank Nesmith on April 20, 2012 at 2:25am

They got no bonus money and no payments each year to hold the land if the drilling was not started.

Permalink Reply by Finnbear on April 20, 2012 at 3:07am

Why did they willingly sign such a bad deal?

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on April 19, 2012 at 9:24am

Betty, do you know these people?

I don't know if this would help any...but there are requirements from DEP in Pa regarding number of days that an owner has to respond regarding where the drill site is located, etc.   (of course we do not know of what clauses are on their particular contract).   So even if a permit hadn't been applied for...under the permit process it is required that the owner be notified and have so many days to respond...  

http://gomarcellusshale.com/forum/topics/possibly-a-way-out-of-that...

so many in those years and up to about 2010 were being told just anything to get people to sign...many promises verbally to the landowners who were so trusting of the entire idea but without knowledge.

Permalink Reply by Betty on April 19, 2012 at 1:13pm

No, I don't know these people and I'm not leased with CHK.  Some of my interest is because my 2008 lease will be up next year with a pugh clause and only a portion included in a unit that is not doing anythng so far.  Even in 2008 there wasn't much info available .  This site, as well as others, offers a great deal of information about the leasing process and more than I ever thought would be involved when we signed.    Thanks for the link.

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on April 19, 2012 at 5:05pm

I think that is what Pete was saying on the first page...."more than any of us knew" and the oil companies knew that.   Well said by Peter (and surely those who benefitted when the bonus outlay and royalties had tremendously increased most likely wouldn't agree unless it was their own family that had got caught up into the lease dealings of the early 2000-2008)

The oil companies had inside information, hid their company names, sold all of us a string of lies, the government sat quietly while holding all the geological data, the landmen threatened and made many false promises. I am remorseful that I did not chase these scumbags off my property when I had a chance.

  And this is why many are now realizing about their clauses that could extend without another bonus outlay....it was as if  some power was used against them and blinded the people from noticing what they really were signing.   i don't say that in jest...it is in the book of Acts where  J.C. says to Peter that the message is to free the people from the devil that had blinded them from the truth....a force we cannot understand nor do the oil companies know when that power is at work in the greed that is exercised.    It will be wonderful to see how GOD will turn it all for His good.....go ahead GOD...we're waiting.  amen.

Permalink Reply by Finnbear on April 20, 2012 at 12:04am

The oil and gas companies SHOULD have the inside track - it is what they do for a living. Any developing play gets leased up cheaply at first before the general public knows anything. Then the prices go up IF it proves out. If it doesn't prove, then the O&G walks away and takes its lumps and hopefully does better in the next play. Buyers remorse because you didn't do your own due diligence and sour grapes because "my neighbor got more than me" are NOT valid reasons to get out of a deal you willingly signed.

Permalink Reply by Betty on April 20, 2012 at 3:20am

I agree of course oil and gas companies have the inside track... that's what they do for a living.  We're the shmoes who have a lot to learn.    And I honor my agreements -- no sour grapes from me.    But hiding behind shell companies and intentionally misleading landowners does little to promote trust.  Of course, with their track record perhaps that is probably the only way CHK can do business... hiding behind a different name.  The following article was posted some time ago, but I think it's worth looking at again.   I have no personal dealings or vendetta with CHK -- to me this serves as a cautionary tale to remember when dealing with any gas company. 

http://www.reuters.com/article/2011/12/28/us-energy-giant-idUSTRE7B...

...Late in the summer of 2010, hundreds of farmers in northern Michigan were fuming.

All had signed leases with local brokers permitting drillers to tap natural gas and oil beneath their land. All were demanding thousands of dollars in bonuses they had been promised in exchange. But none knew for certain whom to go after...

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