Thoughts appreciated on this issue

In June I top leased my property to a gas/oil  company. One day before my old lease was to expire the company holding my lease filed and placed me in a unit to hold me in the old lease. I have since discovered that was not a legitimate unit. (some of the acres in the unit were not theirs to use).  Last week they posted a new permit and legitimate unit, of which my property was included.

So, my feeling is they can not keep me under the old lease because:  (1) some of the acres in the 1st unit were not legitimate. (2) they did away with that unit. (3) the legitimate unit was developed and new permitt obtained 2 months after the old lease expired.

I know there are a few people on here that are very knowledgeable and may be able to give some inside as to what to do. I would be very appreciative of your thoughts. Thanks.

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Permalink Reply by Philip Brutz on December 7, 2013 at 8:43pm

You should consult with a good oil and gas attorney.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on December 8, 2013 at 12:49am

What he said.  Immediately.  

2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on January 5, 2014 at 1:17am

Marcus - depending on the state: CONTRACT LAW Statute of Limitations (I believe correct)

- in PA - x4 years...in Ohio - now x8 years...correct if wrong...

- or as you implied: ASAP

As one light lights another, nor grows less - so nobleness enkindles nobleness.

Permalink Reply by JK on December 8, 2013 at 1:09am

The only protection you have at this point is with legal counsel.

If you want to be subjected to their actions then it's up to you from here.

Good luck!

Permalink Reply by Charles Randolph on December 8, 2013 at 7:24am

Have you asked the company you top leased with if they will assist you with a legal filing ?

Permalink Reply by JREwing on December 8, 2013 at 7:42am
Charles, while I can't be positive unless Katie confirms, the company that top leased likely also held the original lease. They likely just sweetened her lease terms to hold her acres for another 5 or 10 years, but then found a devious solution to try and hold her to the original lease terms.
Permalink Reply by Charles Randolph on December 8, 2013 at 8:22am

JR, If that turns out to be the case, then it might behoove future landowners who top lease to the same company which holds their old lease, to insist that some clause in the new lease create some absolute termination of the old lease on the date specified.

Permalink Reply by skittles on December 8, 2013 at 4:21pm

as it turns out, the company with the old lease(we will call company A). did get the top lease. company B offered a much better lease, but company A had to come back and match it,( we had paragraph 14 inour lease). they did exactly what we new they would do. but it was a gamble. its all a gamble with these people. the lease says one thing but it always means what the lease holder interpets it to mean. and you just try to get them to put something in or take something out of a lease. once you sign that first lease you are married to them for the rest of your life with no option for divorce.

thanks for you thoughts. legal counsel is involved.

Permalink Reply by Armstrong Land on December 9, 2013 at 7:56am

Whats devious about  being in a unit?  Isn't the very essence of the oil and gas lease the implied covenant of development?  This seems like a good thing that your Lessee is going to operate on the lease and establish production - be grateful the rig is coming.

Permalink Reply by JREwing on December 9, 2013 at 12:39pm

Nothing devious about being in a unit.  What's devious is the method they used to put her in a unit under her old lease terms.  You don't think what they did what devious huh?

I'm sure she's thrilled to be in a unit.  I'm also sure she'd be even more thrilled to have been put in a unit under the assuredly better terms she negotiated in the top lease.  Geez...  

Permalink Reply by skittles on December 9, 2013 at 8:52pm

Thankyou JREwing for understanding whats going on here. This is "found money" for all of us. Even so we have the right to be fairly compensated for loss of our peace and quiet, that we enjoyed, which is the reason we live here.  We try to negociate fairly and respectfully but that is not returned by these parasites. The point is; this company will challenge you on every  penny they owe you. They send people to your house to intimidate you. They simply will do what ever it takes to get what they want. You can either keep your mouth shut and take what they want you to have or you can fight. Sometimes they lose. Sometimes  we win. I hope I can come back and say "we won".  We will see.

Permalink Reply by Rick on January 7, 2014 at 1:55am

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