Replies to This Discussion

Permalink Reply by mark p brletich on March 8, 2012 at 1:15am

sowhat brings fed2782 to the laND OF LAND MEN And dismal lease offers and people who won't return your calls latest news I got was trying tosign up people in frankfort springs for about 500 an acre/1 yr lease i think they'll drill but maybe cap the well  they're also having plumbing problems [pipeline lease aquistions ]  my info says they're paying a total of 15 afoot for pipeline leases and no crossing money so to speak

Permalink Reply by Gary on March 8, 2012 at 1:23am

In Hookstown CHK $3100 an ace..and 17%. Who is making the offers ant $500.00? I would wait can get much worse than 500...

Permalink Reply by mark p brletich on March 9, 2012 at 1:11am

range resources is  and I think a bunch of independent land guys trying to buy cheap sell high got any info on what kind of money pipelines are going for ? intinial money they offered us was 6000 for about400ft. crossing and if the damn thing will be there after we're gone Ithink its worth a little more than that infact a lot more read inweirton daily times some people are asking 30-50- ft. some are asking 100 a ft.

Permalink Reply by craig on March 9, 2012 at 1:41am

Some are asking $30 and I think they are going to get it. I wouldn't take less than $30 myself, plus make the rightofway as narrow as they will accept.

Also try and put in a clause that once the pipeline is not being used it must be taken out.

Permalink Reply by mark p brletich on March 10, 2012 at 1:08am

dana scotti from mark west said the right of way would be 80-100' wide with 4or 5 pipes in in that particular pipeline buried aprox 3feet deep hey does anybody know what a PUGH clause is?

Permalink Reply by JPY 15026 on March 10, 2012 at 3:42am

Just researched this yesterday myself,this is about what I found:

“Pugh Clause”

• Origin of the Pugh Clause

The Pugh Clause originated in 1947, when a Louisiana lawyer, Lawrence G. Pugh, drafted a clause to prevent the holding of non-pooled acreage in his clientʼs lease while certain portions of the lease acreage were being held under pooled arrangements. The Louisiana Supreme Court held that production from a unit including a portion of a leased tract will maintain the lease in force as to all lands covered by the lease even if they are not contiguous.

• Purpose of Pugh Clause

The main purpose of a Pugh Clause is to “protect the lessor from the anomaly of having the entire property held under a lease by production from a very small portion.” The clause is designed to “foster reasonable development of leased property.”

• What is a Pugh Clause and what does it mean?

A Pugh Clause is a clause added to an oil and gas lease to limit holdings on non- producing lands or depths beyond the primary term of the lease. Simply put, a Pugh Clause means that end of a primary term lease, the lease will expire as to any part of the land that is not being used by the oil & gas company.

• How does a Pugh Clause affect land lease owners?

Gas leases used by oil and gas companies drilling in Pennsylvania allow the companies to combine multiple properties/leases into a pooled production unit. The landowners/ lessors then have to share royalties from wells based on their share of the ownership. In most cases, the production units are in the form of a rectangle with the boundaries not following the original property lines. The landowner/lessor will receive royalties only for the portion of the land included in the production unit, yet the entire property is extended into the secondary term of the lease and held by production. If a landowner/lessor has only a small portion of land within that unit, it is not a favorable position to be in. The Pugh Clause is designed to rectify this situation.

• What happens when there is no Pugh Clause present in the lease?

Without a Pugh Clause, the balance of acreage outside of any of your land included in a pool would not be included to calculate royalty payments, yet would still be under the original lease.

• Who does a Pugh Clause benefit?

The Pugh Clause most definitely is to the benefit of the landholder/lessor.

• Is a Pugh Clause included in a standard gas leases?

Generally, no. The standard gas lease is usually written to be favorable to the oil and gas leasing company or other businesses with an interest in leasing land for oil & gas.

• Is there a “standard language” Pugh Clause?

There are as many variations of Pugh Clauses as there are persons drafting the clauses. Some allow the oil & gas company to hold the land but have them pay rent in order to do so. Some are vertical clauses that only allow the company to hold the land up to the depth drilled.

http://www.marcellusconnection.com/archives/416

Permalink Reply by mark p brletich on March 12, 2012 at 4:58am

hey jpy 15026 thanks for the information  very informative and knowledge is power and we do own a small amount of acreage as compared to the other landowners in this particular unit I'm wondering if this can be applied to pipeline lease as well as gas and oil leases ?

Permalink Reply by craig on March 10, 2012 at 2:29am

Sorry, posted this to the wrong subject,should have been about pipeline offers.

Permalink Reply by mark p brletich on March 12, 2012 at 5:06am

craig any information about either subject is greatly appreciated and I go out of my way to try and share this and any information to my neighbors because just like myself were ignorant to the amount of knowlege being shared on sites just like these again thankx

Permalink Reply by Nancy LeNau on March 15, 2012 at 3:25pm

The price is  $3,150.00 and 17 1/2 in Hookstown,PA.  I have heard they be closing all offers after April 22.   Just talked to my neighbor today who signed yesterday.  This is what he was told.  We shall see..... I hope this helps.

Permalink Reply by mark p brletich on March 15, 2012 at 1:11am

met with mark west rep yesterday bigger amount of money but bigger amount of land also[1000ft] still at aprox [15,00a ft] we really didn't comment postive or negetive about the amount but privately  ugly numbers but  still we're trying to keep an open mind as well as open ears /eyes  walk the property on saturday we'll see how that goes hell, might get lucky and thet'll lose interest !! very stressfull  I think alot more than it should be. contacted the rep on the o&g lease or at least the posssibility of one anyhow seemed like a postive conversation but no real hard numbersor lease to look at try and keep you guys posted

Permalink Reply by craig on March 15, 2012 at 3:48pm

Mark, look at it this way.....figure out the amount of acres(using length by width of the rightofway)  that you are going to lose forever. Plus you cannot build within a certain distance as well. Also remember that they are going to be using those pipelines to make money for years and years. Don't get greedy, but you get my idea.

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