What about people who have current leases (pre-"Shale rush")

My neighbor, unfortunately, signed a lease in 2006.  I haven't seen the lease, but it is with Equity Oil & Gas Funds, Inc., PC Exploration, Inc., and Reserve Energy Exploration Co..  I believe the lease is for 10 years, and they get $5/acre/year (~$700/140+ acres).  There is no well on their property.  Is it possible to "get out" of such a lease?  I feel so bad for them.

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Replies to This Discussion

Permalink Reply by Corvette on October 7, 2011 at 1:01pm
I just hope that 14 months from now They are still buying leases. I agree this seems to just get bigger and bigger. Glad you got some extra income!
Permalink Reply by RJ Morgan on October 7, 2011 at 1:12pm
Thank you Corvette, and I hope things change your way. I almost didn't respond to the letter, as I don't read the paper or watch local news, and I had visions of those white orange-capped poles everywhere, and I didn't want them all over the place. I almost missed the boat, as they were wrapping up this quad that very week. I am most happy for this valley that has been in what the country as a whole is seeing since the early 80's. As the world economy is reeling, who would have thought say three years ago that billions would be pouring into our little piece of terra ferma? My wife is from MD, and I initially sensed her family thought I was off my rocker regarding what I was reporting to them, that I started drinking or something, or someone slipped me a mickey. Now they understand after the plethora of articles from Forbes, WSJ, etc. I have emailed. I just hope Big Gov does not pull the plug, or the bond/stock market and dollar do not implode before we get to see it all happen-we are certainly due!
Permalink Reply by Corvette on October 7, 2011 at 1:31pm
Well This economy is in such bad shape, I hope this does'nt fizzle out. Thank You for the well wishes!
Permalink Reply by RJ Morgan on October 7, 2011 at 1:52pm
No problem- I will follow your posts to see how things go. Take care.
Permalink Reply by Finnbear on October 7, 2011 at 7:33pm
If you have a soon-to-expire lease, you should start negotiating soon with the companies who are leasing your neighbors. You may even be able to get a lease now with the signing bonus being held in escrow pending the expiration and release of your old lease.
Permalink Reply by Corvette on October 8, 2011 at 2:05am
Yes I agree with you about negotiating now. I'm going to call Jim Harris realty and talk to them. Also Larry Pergalini, not sure about this Lensmen group. I have about 50 acres for lease. Thank you for the response.
Permalink Reply by Corvette on October 14, 2011 at 4:25am
Looking for people that signed sub-par leases with Range Resources to look into filing a class action lawsuit. The more people the less up front costs.
Permalink Reply by Finnbear on October 14, 2011 at 5:19am
Is there a specific issue with the Range leases that has been violated?
Permalink Reply by Corvette on October 14, 2011 at 1:19pm
THE year is 2007, on a cold winter day a man knocks on your door and tells you he represents an oil and gas company. He tells you they'll give you $100 for every acre you own for a five year lease. Then he tells you there's probably no gas here and if there is it  is so deep they would never bother with it. There will never be a gas well on this property, I don't even know why the company sent me here, nothing will happen here in the next 5 years. This is like free money. Here you are sitting on 300 acres and thinking wow, that' $30,000. Never hearing anything about the Utica or Marcellus shale at that time you think man, this is almost too good to be true! Human nature being what it is, the man represents a ligitimate company and he SEEMS ethical and honest. You go ahead and sign and now they have you. Two years later you start  hearing about the marcellus shale in western P.A. and people are getting $2500 an acre. Now you begin to realize that you have been taken. They came to your home and robbed you and did everything but pull a gun on you! Talk about insider knowledge! And it's all legal!
Permalink Reply by Finnbear on October 14, 2011 at 5:07pm
And nobody held a gun to your head and made you sign...
Permalink Reply by Corvette on October 14, 2011 at 11:14pm
LOL Finn, it's misrepresentation --just sayin
Permalink Reply by Finnbear on October 15, 2011 at 9:45am

It is their job to sign you as cheap as possible. That includes telling you as little as they can while still convincing you to sign. There is no case for a class action suit based on a bunch of people signing leases that favor the oil and gas company. If the leases were that one-sided to begin with, they should have never been signed in the first place. How many of those people used a good oil and gas attorney to vet those leases? I bet very few. I have already seen one such suit where the lawyer wants part of the signing bonus AND part of the royalty (another BAD deal for the landowner) IF they get the whole batch of leases cancelled. The group participants were then required to take a new lease negotiated by the same attorney and he kept a cut of the signing bonus and the royalty which in my mind is another bad deal for the landowner. Out of the flames and into the fire. How is the class action suit you mentioned going to be paid for? Don't let the attorney take ANY of your bonus or royalty money from any new lease you may obtain. Keep any new lease as a completely separate transaction.

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