was I taken again on my lease?

I am a newcomer and this is my first post.

I am like so many others that were taken in by signing up to lease my mineral rights for $80 a acre (40 acre) at 12%. I am just a average middle class person that feels we were all taken in by large companies that had privilege information we didn't. I would say that is water under the bridge BUT her we go again.

With less then a year to go on my lease they would have had to renew the lease and pay me the $80 a acre. A land Man came and talked to us with papers in hand saying they were going to put me in a pool and drill in June (most likely April or May). They needed to change my contract to change the size of the pool so they could drill. After talking to two lawyers we decided to sigh the papers because of the amount of money we would get from royalties. My property is adjacency to the Magum well that is and has been producing for over a year so things looked very promising. I did not get a pugh because I believed everything the land man said.

Now I get a check from Chesapeake saying 1/10 of one of my acres is on the Magum pool. The check is for $45 for 4 months. Bottom line: It looks like they are paying me $100 a year to keep from paying me the $2000 for a new lease. Now they are said that they are not going to drill on my land until MAYBE next year, and I can't even find where they applied for a permit (Kinsey well Augusta township, Carroll County) Is my land man just taking advantage of me or is this how they do things ? Can you trust a land man or will they say anything to get you to sign? How long apter they apply for a permit do they usually drill? Thank you for any help.

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Permalink Reply by Judy McDaniel on September 3, 2013 at 2:23am

Finnbear, that sounds great what twp. are you in ? Where did you find different lease offers? Do you know of any land owner groups in Muddy Creek Twp? I live out of PA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

creek

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Permalink Reply by Finnbear on September 3, 2013 at 3:26am

Belmont County OH is where this property is located. I have no idea what is going on in your area. I found lease offers by asking LOTS of questions. Find out who your neighbors are leasing to or talking about leasing to. Find out who has already leased land in your area. Read all you can here on GMS that pertains to your area. Participate in a county group for your area here on GMS and the groups for the counties surrounding yours. If there is not a group here on GMS for your county, create one.

Permalink Reply by Judy McDaniel on September 3, 2013 at 5:55am

Finnbear, Thanks

Permalink Reply by Judy McDaniel on September 2, 2013 at 6:33pm

Anyone know of a good oil and gas lawyer in Butler County ? Should you use one in your county?

Permalink Reply by John on August 19, 2013 at 11:19am

You know the old saying never believe what anyone says...With this being said I have been a land agent and consultant for landowners for years. If I can not back it up in writing I will not tell you something to get a lease signed.  As for your lawyers they should have known better but they have about the same experence as most of the landmen today. (Not Much) in the Oil and Gas Field.  You have to rememeber that landmen can only tell you what the company teaches them, its not their fault for the most part but if they are good at what they do they will research to get you the truth and learn as they go. The First thing I was taught in this business is NEVER LIE. It will come back to bite you. Sorry for you troubles but the second time around you also shoud have known better!

John

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