Replies to This Discussion

Permalink Reply by Mark Allen on February 6, 2012 at 2:21am

The problem is the company will get these leases refilled if you cash the check, which is a delayed rental check. My point is send the check back,call your attorney and do not sign without communication with a qualified attorney or consultant that will be able to work a brand new deal. Most people,will receive the letter,saying .."take this check,thanks for doing business". This is the chance to start over.....not renew!

Permalink Reply by HMMMM! on February 6, 2012 at 2:13pm

Maybe you haven't seen a lease with a company option to renew, but the landowner plays no role in the renewal. Why you keep saying "don't cash the check" and "this is your chance to start over" i don't know. Just because you don't cash the check doesn't mean the lease is invalid, the company fullfilled thier obligation by sending you the check. I think before you get peoples hopes up you should actually read one of these leases. You said "not renew" and i think you meant don't renew, what your not getting is the land owner has no choice in this, THE COMPANY does!

Permalink Reply by Mark Allen on February 6, 2012 at 2:24pm

I am not an attorney, but there is some gray area here. It is worth getting a legal opinion on.  I appreciate the feedback, this is good.

The more we can talk about this the more apt we are to finding a solution.

Permalink Reply by HMMMM! on February 6, 2012 at 3:47pm

What gray area??????????

"Prior to the end of the primary term hereof, the lessee shall have the option to renew this lease for an additional period of 5years."

That is exactly how it is worded, so now you want the people who got $5 an acre to go take thier tiny check and give it to a lawyer! Are you serious? These old leases started expiring early last year and to my knowledge not one person has gotten out of the renewal except for the few of us who made them take it out! We certainly would have heard from someone on here by now who got out of it.

 

Permalink Reply by Finnbear on February 7, 2012 at 3:23am

Oil and gas companies don't offer the kind of lease terms mentioned because those terms don't favor the company.

Informed landowners, often with the help of competent legal counsel, negotiate those terms and have been doing so for many, many years. Education and proper counsel are the key.

Permalink Reply by HMMMM! on February 7, 2012 at 3:50am

None of those leases were negotiated, just signed. I was very lucky, alot weren't. I would say the people who negotiated for years with lawyers were in the minority around here, i don't know anyone who used a lawyer pre-shale rush. But i know alot who wish they did!!!!!

Permalink Reply by Finnbear on February 7, 2012 at 4:58am

Give yourself credit where credit is due. You weren't "very lucky", you were just smarter than your neighbors. You same something in your lease that you couldn't stomach and worked to get it removed or amended. You approached this the right way - eyes open and paying attention.

Kind of hard to feel sorry for anyone who "just signed" isn't it?

What other potentially lifetime business contract would you "just sign"?

Some landowners have been negotiating better terms on O&G company leases for as long as O&G leases have existed. I can show you 3 completely different leases on 3 adjacent farms signed the same month with the same company. The first used one attorney, the second used none, and the third used a different attorney. I can show you about 8 different versions of some 60+ year old leases all signed with one company in the same year in the same township. It all depends on what the landowner is willing to agree to.

Some landowners "just sign" whatever is presented to them without taking the time and putting forth the effort to find out exactly what they are getting and giving up with their signature.

Permalink Reply by HMMMM! on February 7, 2012 at 5:08am

No, i do feel sorry for them, not everyone has the foresight to see it was a liftime committment. Just because someone makes a mistake in judgement doesn't mean they aren't deserved of empathy and compassion, at least thats what i was taught and how i feel. We can all sit back and judge people afterwards,that's easy. I just hope they get drilled and get some decent royalty checks. As i've said before i'm guilty of all the things you are talking about Fin, i just got lucky. Have a good day!

Permalink Reply by ljmi on January 29, 2012 at 6:59am

Any more updates on this well.

Permalink Reply by William K Watkins Jr on January 31, 2012 at 4:36pm

The well is being flared again today and the  rig is back up.  Does anyone know of a reason for the rig to be there other than drilling another well.  I am  assuming it will be a horizontal .    ODNR website is not showing the additional permit yet.  Gas line from the well is being laid this week.

 

Permalink Reply by 0i7okn54zwbdo on February 1, 2012 at 3:33am

If there's no permit for a horizontal then that's not what they're drilling.

Permalink Reply by ljmi on February 1, 2012 at 4:34pm

It is more likely a service rig to run tubing in the hole. The Drilling rigs are big so I doubt it they are moving in again to drill the horizontal leg. The permit shows this is only a vertical well that is what makes this interesting.

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