XTO is trying to use unitization to force landowners to accept $3,200,18% for a two year lease.

XTO is offering ODOT $8,000 an acre with a 20% royalty for a 5 year lease.  But for normal landowners they reduced the offer from $6,500, 18%, 5 year to $3,200, 18%, 2 year.  

Start reading at page 205:

http://oilandgas.ohiodnr.gov/portals/oilgas/pdf/unitization/2016/Wi...

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Permalink Reply by Joseph-Ohio on December 22, 2015 at 10:15am

Not so bad so long as it would be honored.

JMHOs

Permalink Reply by Philip Brutz on December 22, 2015 at 11:47am

Are you referring to the $8,000 an acre 20% or the $3,200 an acre with 18% royalty?

Permalink Reply by Joseph-Ohio on December 22, 2015 at 1:38pm

I would be referring to either.

Also I read that the 20% were only offered to ODOT; and that both the 5 year and 2 year versions offered to the 'regular' landowners were @ 18%.

Actually sounds real good for a 'forced unitization' circumstance / goes a long way toward bolstering my perception of the 'forced unitization' process and how involved landowners are being treated.

Just so long as the return played out true / all terms / conditions / specifications end up being honored.

JMHOs

Permalink Reply by Jesse Drang on December 22, 2015 at 2:22pm
Take the bonus and hope you don't get drilled.
Permalink Reply by Joseph-Ohio on December 22, 2015 at 2:58pm

That's a good one Jesse.

Permalink Reply by Barry D on December 22, 2015 at 3:59pm

Phillip,

It has been my experience that the ODNR is attentive  to landowner concerns with regard to "unitization" requests (forced pooling).

First - get an oil and gas attorney. A response must be made, by you, to the unitization request.

Second - if your only concern is that you are not being treated the same as ODOT, in my opinion, that is a valid reason to object.

The reason that most people feel that complaints about oil and gas companies are not dealt with properly is that the people (complainant) did not follow through.

If you object, properly, to the ODNR, through  their process, I believe that you will be surprised at the results.

I can not stress strongly enough that you, yourself, must force the issue. If you lay back and hope that someone else will save you, then don't even start.

It is you who will have the most impact on he final outcome.

Stay involved; never give up! 

Permalink Reply by Joseph-Ohio on December 22, 2015 at 4:36pm

Wondering now if I'm reading your O.P. correctly ?

Were the 'regular' landowners leased at $6,500.00 per acre and 18% for an original 5 year 'Primary Term'; and are now being offered $3,200.00 per acre and 18% for a 2 year extension; while ODOT is being offered $8,000.00 per acre and 20% for a 5 year extension ? ? ?

I too don't understand why ODOT appears to be being offered more than 'regular' landowners are being offered - but, the 'regular' landowner deal still sounds pretty good (to me anyway).

Permalink Reply by searcherone on December 22, 2015 at 8:39pm

Philip, this is a great post.   Reading for every landowner.   I learned much about the process of contacts with landowners and all landowners need to be keeping accurate notes on contacts from these companies and land people.

Permalink Reply by Joseph-Ohio on December 22, 2015 at 9:19pm

Was finally able to download the Application to the ODNR and read that it appears that the reluctant 'regular' landowners were offered $6.5k per 'Mineral Acre' and 18%  for a 5 year Term and / or $3.2k per 'Mineral Acre' and 18% for a 2 year Term while the O.D.O.T. was offered the $8.0k per 'Mineral Acre' and 20% for a 5 year Term.

Don't know why the O.D.O.T. offer was / is / would be seemingly greater in any instance (unless (guessing only) it was / is / would be an outright attempt to 'favor' the O.D.O.T. / State to gain the State's Leverage to also be applied against the reluctant 'regular' landowners / prospective lessors ? ? ? ?

Just thinkin' / guessin' here.

Standing by for clarifications.

Offers still read pretty OK but wonder what / how the remainder of the lease agreements look and what would be left of them after the attorneys were paid / production begins / any deductions from royalty proceeds (if any) and etc. / so forth ? ? ?

Permalink Reply by David Allen Lilly on December 23, 2015 at 1:24am

Where are the leases and are the royalties gross or net ?

Also, I wonder if this is a starting point for negotiations or a one and only final offer ?

I don't want to download and document that long.

ODOT maybe gets more of an inducement because they are tougher to deal with than you and I.

I also wonder what terms your neighbors signed up to, you will likely get those terms I would think ?

Why is there force pooling anyhow ?

I know why ODOT is being force pooled, but landowners shouldn't need to be forced pooled, they should have already been signed.

Permalink Reply by Joseph-Ohio on December 23, 2015 at 9:38pm

A lot of mystery prevailing in this set of circumstances.

Would like to know more and how it will finally work out.

Probably won't shake out for years.

Just my guess.

Permalink Reply by mark alters on December 29, 2015 at 2:34am

I would be EXTATIC to get $3200 per acre. Where is this at? I heard in Butler PA you are lucky to get $500 per acre right now.

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