Replies to This Discussion

Permalink Reply by Sonja on August 11, 2011 at 3:01pm

Hi Becky, This is only a bullying tactic.  It would take to much legal time and money for them to try to get 2 acres.  If you don't want to sign, then don't.  But, if you chose to sign, make sure you have an attorney draw you up a lease. In no way shape or form should you sign their lease. It is the most one sided lease ever written, and that is their side!  Get protected.  The sign on is an good amount for the area if that is for 5 years?

 

Permalink Reply by DG Paris Twp on August 14, 2011 at 1:57pm

Becky- While it is true that a drilling company can "force pool" you into a drilling unit, this practice is not common unless the landowner simply refuses to negotiate. You own the land and minerals/gas/oil underneath. What you can't do is prevent someone else from developing "their" minerals/gas/oil. There is nothing wrong with driving ahard bargin, but in the long run it is in your best interest to negotiate in "good faith". I would say your best bet is to ask CHK to see their lease agreement and then consult with someone who knows leases before signing anything. It appears that the gas/oil play in this area is heating up and the price will likely continue to climb. See Carroll, Harrison, Belmont and Jefferson County groups.

 

I have met and negotiated with 2 different landmen from CHK and have negotiated what I consider a landowner friendly lease. I have not signed yet but I will when the bonus and royalty payments reach what I feel are fair. The bottom line is I will continue to hear their offers and research what the potential is for this area before I will sign anything.

 

Also keep in mind that there are multiple layers of  shale and sandstone which hold oil and gas reserves. These layers can and should be negotiated separately. Hope this helps answer your question.

 

By the way I am also in the Minerva area.