Have a well pad on my 60+ acres with 3 decent wells. Shell wants to put 4 wells on an adjacent unit and due to problems drilling the original site seems to want to drill them from my pad pretty badly. The new wells will run NW where mine are running SE. From what I gather from the maps, these wells are going to horizontal out about 2-3 miles to get the original pad site and under my adjacent neighbors where the new unit will start. They also tell me that they will well bore through my property but not frack til they get to the other unit like I'll be able to tell.

Now when I signed years back, There wasn't much info available and without grabbing a lawyer, I ended up with a 12.5% boiler plate. For some reason, can't remember why exactly, East Resources, at the time, a few months later mailed me a $2000 per 12.5 lease. I had called them about something concerning the lease and was told, we already have you signed so basically you're screwed. So basically, they originally screwed me over, then kinda rubbed it in my face with the new lease and then told me to go screw myself again. Heheh, now I figure it's my turn. 

I tried to feel out how bad they need or want my pad and their alternatives and it seems, checking the terrain in their direction, their drilling problems, and from what they're telling me, I pretty much have them by the, well, where I want them.

I don't need the dough and the drilling experience wasn't too bad, seeing that it took place on the opposite end of my property, away from my house, which is my get away home. And from what I've seen, Shell's drilling and fracking operation is pretty much the most contained, for lack of a better word, I've seen and everything went real smooth.

They've offered me so far about $30,000, half for the well pad use alone, a raise to 15%, no deductions, and a clean and green allowance, and I kinda told them, that isn't going to work. They said, give them a number but figured I'd grab a lawyer, talk to my friends here and on another site, and do some homework this time, so no counter offer yet. I won't be getting any royalties from these new wells as all my land is in my unit. I asked to put all my land in the new unit also but according to them, that's not allowed or legal so everything is banking on this deal as far as I know.. 

Like I said earlier, I don't need the dough that badly but would like to see my neighbors to the north and west get some royalties. I'm figuring they have to at least make up for that lease from the past and at least !8% NDs as well as restrictions on the well pad size and well placement, before I even start to consider. Considering how they treated me in the past, I don't believe this is being too greedy and if they pulled out, I'd be disappointed but honestly not that disappointed, remember no royalties and that boring but no fracking my land part of the deal. 

I had a friend recommend a good gas lawyer that did well for him and his neighbors but she may be too busy or just not interested after not hearing from her for a couple weeks so If anybody can recommend a good one, I'd appreciate it. Would also like to know for sure about that not having all my land in both units, it kinda sounds legit, but only info I can find is limited or from the gasco,  So what are your thoughts? I'm in Lycoming County Pa.....Thanks  

 

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Sounds like a rather unique set of circumstances but here's my $.02    I'd try to get some sort of annual payment, inflation corrected every five years. There will be lots of truck traffic, dust, noise, etc, for decades. Call it a maintenance fee/access fee.  

Also, if your "boilerplate lease " doesn't have other protections, now is the time to add them.  Things like no compressor stations, no meter stations, no foreign gas, no gas storage, better shut in terms.  Get indemnified, not just the standard "Not held liable" clause. Other land protections. Here's your one chance to do it right.

The land man says it was unique to him. I'll run all ideas and any other thoughts by the lawyer and hopefully a second chance will work out  We're on the same page Jim.....Thanx

Get a really good lawyer.

 

Because if you put the screws to them, if they see an opening in the agreement to get back at you ...they will.

 

 

When they say they will up the royalties and make it a no deduction lease is that retroactive for the royalties already received?
You missed out on the initial production monies due to the boiler plate lease and must now be curving down. Why wouldn't they give you a better % now? I would try to get them to go back in time. This could add up fast.
I commend you on thinking of your neighbors and wish you the best.

East Resources paid $2000 per. Those A.H. never went above $200 for us in SW Pa. Sure glad they didn't offer us $2000/12.5%. We would probably have taken it too. I'm sure at least one O&G owner signed for $250/12.5% on 215 acres on our N side and another on our W. side for not much more. So don't feel bad about taking that.

Get a very good O&G Lawyer and see what they have to say about your options. If I were you and they couldn't drill without your written agreement I'd want 5.5% of "foreign" production. That should get their attention.

Don't tell them anything until you talk to that Lawyer.

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