Hello all,

I am new to posting but have been lurking for a few weeks. Great information all around on here. My question is, I am in the second 5 year term of an older lease and it is about to expire on March 19th. I have not heard a word from the gas company and from the info provided on here, I have found that I have been unitized. Nothing has been done in my unit to date, except siesmic and water testing but the unit next to me, has a well pad on it and according to the unit map, that pad will eventually bore under my unit. Should I call them? Or am I better to wait until it expires? Does that planned path constitute "production" even though it has not started on the  other pad yet?

I only have 10 acres and they wrapped the unit lines around my property so it is obvious I am in the unit. I am being told by differnt "friends" up there to call, don't call, I am already screwed, I am in good shape, AND frankly am very confused with a deadline approaching to boot.

Can anyone provide some guidance?

 

Thanks

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Replies to This Discussion

Have you rec'd documentation that you are in a unit?

No. Maybe the original entire lease owner got the documentation? I haven't heard from them since they moved to Florida after selling their home a few years ago. But according to the maps I pull up on here I am. I bought my land from a larger parcel (which is entirely in the unit). When my check comes it is shown under the that name but of course written to me.  I called the company (3-4 years ago) and asked why and they said it is only because I am originally part of that bigger lease but that when my next lease comes it will list my name. I am now 5 days away from expiration and have not received anything.

I had a similiar situation in that I did not recieve word on the unit , but that can be found at the County Courthouse.  I consulted my attorney and absent a pugh clause, my entire acreage was locked in to lease even though only a couple acres were in the first production unit in my area.  Fortunately the remaining acreage is being placed into another well unit. 

Go to www.marcellusgas.org.  You can sign up for a free membership for 5 peeks to see if a permit was pulled to drill on your land.  You can also pay for the annual membership which is $20.  You can print one map of the drill for free.  If not, you can just pay $10 for the map.

Thanks. I'll do that. I was able to pull up the map on this site showing the units and there was no well pad shown on my unit. The one south of me which abuts my unit does have a pad and the map showed a drilling path under my unit.

What is a "pugh clause"?

Thank you Frank. My copy of the original lease does not show an addendum or Pugh clause but I am already at the end of the second five year period. Does that help or hurt me at this point? I guess my most imoprtant question is whether or not to call the company to tell them my lease is about to run out or wait until it expires. I have been told to do both by my neighbors up there but since I only have a vacation home and live in SE Pa, I am not sure who to listen to.

Thanks to Angela, I went to the .org site and just got the map. Seems things have changed since the other unit map I pulled up on here was done. It seems as if they cut the unit around me and I am no longer in a unit. My land is actually notched into the unit instead of just following the property lines from one neighbor to another and including me. So now that we know that, can anyone explain my situation to me? Should I call the gas company or not? Am I out of the game completely at this point? Thanks for everyone's help.

Chris,

 It sounds like you have a number of moving pieces to your situation that make it difficult to fully assess.  To answer your question though it probably does not matter whether you contact the Company or not at this point.  In general it is better for a lease to expire to create the opportunity to get a better royalty and possibly some lease rental if the company does want to develop your property.   If they do not want the property it doesn't matter as they will walk away from the lease.   Something to think about  - your property is considered part of the original leasehold, so if part of the the original parent property is in the unit and the unit has drilling, production or operations that continue the lease, the lease on your property will most likely continue as well.   Feel free to contact me if you'd like to discuss the details.   The important aspects will be to look at all the property in the lease, all the units that include that any of that property and the specific lease language regarding extending the lease beyond the second five year term. 

Thanks Scott. Just to update. I contacted the courthouse this morning and they don't show me being in a pool but they directed me to Landex (which is currently down). They also did not see the original lease owners name listed, but their land (and the people who purchased that land) is included in every map I have found showing the unit (North Crane). One of the maps I got from here shows me in it, the one from marcellus.org does not. Is Landex the same as what Wayne provides on here?

Update: I got the document from landex and 9 of my 10.25 acres ARE in the unit. Myself and my neighbor who also bought their land from the original owners are shown to be in it but it is listed under the original owners name and that total acreage equals my neighbors and mine minus about an acre (there is a little triangle cut off on my land). I guess my outcome will depend on the language in my lease. I will update for informational purposes to any other newbie, but thanks for the help everyone.

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