Shell is backing out of leases in eastern Lawrence County

A guy my brother works with stopped over last night and told us after contacting Shell and inquiring where his money was, they tolf him they were cancelling his lease. He lives in Plain grove Twp., right off of 79.  They actually eluded to him they were low on money. What a joke. I still think there should be a law against this. If the landowner is bound the second he/she signs a lease, so should the gas company signing them.

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Permalink Reply by kris miller on June 2, 2012 at 10:49am

they were supposed to pay me 250,000 total with mineral rights and water and gas pieline. Then they wanted tp put a water impoundment on my farm for 20,000 for 5 years . they wanted 40,000 for ten years. I really didnt want it but they begged. Told me how much safer and there would be no "water bottle" truck traffic. All i could think of was a neighbor kid getting hit as they are going to one of the many wells on my road. I agreed we signed was told my checks would be in my mailbox in under 90 days. well all i got was the 20,000. come to find out chesapeak pulled all the other contracts . They told me this on day 89 all they wanted was to put the impoundment on my farm . They have done this to other people in my area same way same time. My neighbors have turned down all and any offers since so much chesapeak wants to sell of more than half of their leases. i read a article about how chesapeak owes goldman saks 4 million and cant pay it. Btw found out the hard way they have a very sneaky contract where they can turn down contract under 90 days

Permalink Reply by Brian V. on June 2, 2012 at 4:02am

Does anyone have any up to date drilling information. Itr seems there are quite a few people not getting paid and having the company back out of leases. Part of the 90 waiting period also provides the company additional time to "prove" the area. If they decide, because of poor drilling results, that the lease Money and royalty does not justify the results or the current market the company will certainly back out. I have been hearing from friends in the industry that the Western PA, Ohio Utica is "good" but not everything that they had hoped it would be. This coming from a mid-stream friend of mine. I hope that you all haven't seen your peak out there. I know here in Central PA our peak was a little over a year or two ago. It was crazy here until 2 things happened. 1) drilling seismic data started coming in and companies had a better idea of what it was they were paying for and producing. 2) the dry gas market has obviously taken a nose dive for about 3 consecutive years.

I am certainly not saying that this is the case but from experience when the companies really want your lease they will jump through hoops to get you signed and then pay you on time to ensure they keep the lease.

Another issue to consider are old title issues. Back in the 1850's forward most land was owned by very few. The tracts were not chopped up like they are now. If there is an issue with title back in the 1800's that issue consists for all the current tracts that are now made up of the once very large tract.

 

 

Permalink Reply by Carman Friday on June 2, 2012 at 6:21am

I have been waiting on Shell since Oct.  I am from Guernsey County and have heard it all.  Now we are being told we will be paid in July or August.  I'm sure glad that as an unemployed single person, I didn't go spend any of that money on good faith.  I agreed that a handshake should be binding, but then again, I was raised in an age where people said what they meant and meant what they said.  Old fashion, maybe, ethical, definately.

 

Permalink Reply by kris miller on June 2, 2012 at 10:58am

our lawmakers need to step in and stop only worrying about fees

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