Something's happening (maybe)

Over a month ago, a Long Consultant rep came around wanting me to sign for permission for Shell to do a 3-D seismic survey. I told them I wasn't leased, and they said someone would be around soon to talk to me. Well, no one came around.

 

Finally I contacted Andrea Garrity at Shell. Thanks to whoever gave me her e-mail!! She seems to have lit fires under several people. I got a phone call from Long Consulting this morning, apologizing for not talking to me. The guy from Long said that he understands that I'm "currently negotiating a lease" with Shell.  Hmmm...I haven't heard from anyone yet (Andrea told me that the guy I'm supposedly negotiating with was out of the office last week). The Long guy is going to email back to Andrea that no one has contacted me yet. At least I'm on their radar now. I hope that the drilling end is more organized than the leasing end; so far I'm not impressed with Shell or Long Consulting.

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Replies to This Discussion

Permalink Reply by JOE REDDING on July 29, 2011 at 4:48am
Lynn; I can't blame you for being paranoid, I am devout skeptic about everything that sounds to good to be true, but I signed a lease anyway, after 3 yrs of worring myself to death if it would be the right thing to do. You can googel SIGHT DRAFT AND READ THE EXACT DRAT THAT SHELL OFFERS. I don't think they can pull your money back after they sign the lease and the draft, unless you are not the mineral owner.
Permalink Reply by Lynn Wigglesworth on July 29, 2011 at 7:05am
Joe; that's where I am...I've been following and turned down offers for 3+ years, but things aren't getting any better. I'm sick of worrying about it, and they are getting closer to actually producing something, so it's time to sign.
Permalink Reply by JOE REDDING on July 29, 2011 at 8:11am
Lynn; That's about the way it is, but don't let them tell you that a no surface lease is less bonus than a standard lease as I posted before they gave me the 2000 - 15 for the non surface, and some good addenda. good luck...
Permalink Reply by Lynn Wigglesworth on July 29, 2011 at 10:46am
Joe; can I ask what kind of addenda? He offered the 'no deductions', and I'll ask about water testing...any others I should ask for?
Permalink Reply by JOE REDDING on July 29, 2011 at 3:27pm

Lynn; #1 conflict of terms

         #2 water

        #3 royality without deduction

        #4 hold harmeless

       #5 oil&gas only

       #6 ad valorem taxes

      #7 waranty of title

     #8 clean and green

  thease are what they added to my lease,but you may be able to get more, you only get what you ask for. again good luck...

Permalink Reply by paleface on July 29, 2011 at 7:03am
 Shell wants all the leases they spent 5 billion to buy this part of the county.
Permalink Reply by Richard Gerard, Attorney on July 27, 2011 at 11:18am

Lynn

 

The seismic is going East to West so you would be at the beginning whereas Farmington where my client is is a third in.

 

Depending on the size of the property they do not need go on it, but they plan not to shoot under it I am told

so that is more annoying to them.

 

The lease is not as straightforward as it might seem. You need to read it very carefully

Permalink Reply by Lynn Wigglesworth on July 27, 2011 at 12:11pm

I've gone through the Shell (SWEPI) gas lease, and there are only a couple of changes from the East lease. First, the bonus money is paid at the time of signing. Then, in the section on unitizing, the SWEPI lease specifies: "Furthermore, Lessee shall in no event be required to drill more than one well on such a unit", and goes on to say that a unit shall not exceed 1,280 acres.

So, it certainly wouldn't be a very good deal if they hold 1280 acres with one well. Especially if it's a vertical well...you couldn't treat yourself to McDonald's once a month with that royalty.

BUT, at this point in Delmar Township, it's lease with Shell or don't lease.

Permalink Reply by Ann Ticopa on July 27, 2011 at 12:45pm
Another advantage of the larger units to Shell is that, in the event of forced pooling, they could gobble up lager properties in a single gulp.
Permalink Reply by paleface on July 27, 2011 at 1:15pm
 The gas company's are drilling over ten laterials now and they are longer.Senaca just permitted for I believe is 15 horizontal on dcnr property in tioga.I wouldn't be concerned about the unit acres.The gas companys are gonna do what ever it takes to get the gas out of the unit.
Permalink Reply by Lynn Wigglesworth on August 11, 2011 at 9:38am
An upadate: more than 2 weeks after I asked about a non-surface lease, I hadn't heard anything. I emailed Andrea at Shell again; within a couple of hours, the landman called. He said that Shell usually doesn't give non-surface leases for properties as big as mine (42 acres), and that it takes a long time because it has to go to the geologists. On the other hand, Andrea emailed that what I'm asking for isn't unusual, and it shouldn't take anywhere near this long. Why is this so difficult?? You'd think I was the first person to ever ask for a non-surface lease!
Permalink Reply by JOE REDDING on August 12, 2011 at 3:03am

Lynn;

      someone must be trying to pull your leg, something must be up, like maybe they want to put something on your property like dehydrator or something,my neighbor has 50 ac. and got the same lease as i did. find out what is going on before you sign anything, IF THEY NEED YOU, THEY WILL PAY YOU.

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