WOW! talk about cherry picking. Broken hearts and broken dreams.

I was looking on the Butler County web site to see if there were any leases being recorded around me as I have been waiting on a lease from Shell for two months that now I don't think is going to materialize anytime soon. Well I did see a pattern of leases being recorded in grouped areas. Having the same road address and such. Some within a mile or two of my property but none or very few close by.

Now for the kicker. All of the leases being surrendered back to the O&G rights owners I saw being recorded. What's up with that? Well think about it. We all know now they target areas to put together units right? OK now for today s lesson let us draw a big circle or square if you like what ever your preference. Now let's sign everyone in that area to a lease. The engineers go to work forming a unit. Everyone here knows what a unit looks like. Now the knife cuts its deepest, surrender the leases for everyone that's not in that unit. People that may have been signed with a land group for a year waiting. Signing the lease (we're in the money now!) Waiting 90 business days (AKA 120 real calendar days). Now getting a letter surrender of lease. WOW! what a let down.

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Jim ShoosPermalink Reply by Jim Shoos on March 12, 2012 at 10:44am

... Mike wrote that his lease would be "subordinate" meaning that it takes a back seat to the lease that got recorded first, and that if it got into a legal dispute he wouldn't prevail as it relates to the other lessee.  And when he says "its not worth the paper its written on", he is referring to his ability to prevail against the other lessee, not against the lessor that took money from two different lessees.  He would have one heck of a lawsuit against the lessor for the recovery of monies, and perhaps punitive damages for fraud.

Permalink Reply by adam sorell on May 15, 2014 at 8:00am

I think you are wrong. If a landowner leased with a second company"company B" he would not be in deep do doo as long as the landowner didn't receive the bonus money from  first lessee "company A"

In Ohio it is a race state. The company wants something for nothing with    no skin in the game. That's fraud. No such thing as an option without a value being paid on it.

Besides did the company even pay even the "1 dollar"  for valuable consideration??

Ohio is a “race” state. Under Ohio Rev. Code § 5301.09
Recording Lease of Natural Gas and Petroleum, “all leases “by
which any right is granted to operate or to sink or drill wells
thereon for natural gas and petroleum or either, or pertaining
thereto, shall be filed for record and recorded in such lease record
without delay. . . .”
• And, “no such lease or license is valid until it is filed for record,
except as between the parties thereto, unless the person claiming
thereunder is in actual and open possession.” R.C. § 5301.09.
• Oil and gas leases are governed by contract law. The object is to
determine and effectuate the intentions of the parties

Jim ShoosPermalink Reply by Jim Shoos on March 12, 2012 at 10:55am

How and when does a signed and notarize Oil & Gas Lease become a legally binding document?

 Does money have to be exchanged to make this happen?


There are three elements necessary to make any agreement legally binding.  An offer, an acceptance of that offer, and consideration paid.  It takes all three... if there was no payment there is no binding agreement.

Permalink Reply by paleface on March 12, 2012 at 12:18pm

Mike what would happen if a gas company files a lease and does not pay it in the specified time but its filed,could the land owner sue the gas company ?

Jim ShoosPermalink Reply by Jim Shoos on March 12, 2012 at 3:21pm

No legitimate company would file a lease of record if they haven't made good on the lease bonus payment, but if they did file a lease without having paid the landowner I don't think a lawsuit is your best route, you should simply file an affidavit stating that they never paid the promised lease bonus and thus the lease is null and void.  Filing a lawsuit will drag things out for at least a year, perhaps two, potentially with no resolution.

Jim ShoosPermalink Reply by Jim Shoos on March 12, 2012 at 3:24pm

I am not disputing the stated consideration clause contained in most leases but they also go on to state what the bonus consideration per acre is and if that isn't paid I wouldn't want to be the lessee trying to argue in any Commonwealth Court that your lease is valid simply because of that language contained in the lease document.  Judge Roy Bean might string you up from the nearest tree!

3uq96odaochmjPermalink Reply by 3uq96odaochmj on March 12, 2012 at 7:53am

why hold onto leases when those tracts are not going to be in a drilling unit?  seems kinda a no brainer to me.

Permalink Reply by SBRW on March 13, 2012 at 5:57am

So with all the above being said.  Is Shell paying on all the leases they received? Anyone getting paid and or not paid? 

Permalink Reply by SBRW on March 21, 2012 at 5:14am

Bump.

 

Permalink Reply by T.Fiore on March 22, 2012 at 3:37am

I'd like to know as well... ours is currently in our lawyers hands getting sorted out.

Permalink Reply by SBRW on March 23, 2012 at 12:56am

Did you sign already and they are sorting out the payment or just sorting out the lease to be signed?

Permalink Reply by T.Fiore on March 23, 2012 at 3:38am

Sorting out the lease to be signed..   

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