Just trying to find out some information or some others out there that might be in the same boat as me and what or were i should go with this or am i stuck and just have to go for the ride? I have 150+ acres in pike and orwell twsps with two old leases one that was due to run out in may of this year but found out thru landex that i was put into a nieghbors pooling unit and them the gas co. only takeing in a couple of acres due to the closest proposed lateral wich is still not on my property but falls within the 300 ft fracking distance. I believe or from what i have heard and read and the wording that is in my contract which is hard and confusing to figure out that i am going to be in the hbp catagory on both my leases because they are ajoining lands. Just not sure were to go with this and just looking for any help or info! thanks
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Thanks matt gothcha! I think i should have an attorney review the leases as well! ttyl
Is the 150 acre two separte lots? if so, you should have two leases.
Good news is that you are in drilling unit. Just becasue the one unit only has 5 of your acres in it, does not mean that is all you are going to get. They pool units side by side in most cases. My friend has same senario. The one unit has 3 acres and the other unit will have the reset of his property in it. Keep in mind, when your land is producing gas, the royalties will dwarf the upfront signing money.
Barry,
Do you know how your Pew clause is written? Sometimes the only land that can be hbp is that which is pooled, and some leases hbp all land covered by the lease regardless of how much is pooled.
You may want your lawyer to take a look at it.
Mike
The term is actually "Pugh" and you can read about it here http://www.mineralweb.com/owners-guide/lease-proposals/pugh-clause/
If you have two parcels and two separate leases, generally only the tract (and lease) that is included in the Unit will be HBP. Since your two parcels are on seperate leases, they are separate agreements and will be treated as such, regardless of the fact that they are adjoining tracts.
It never hurts to bring it to a good Oil and Gas Attorney to review your agreements.
There is also a pretty good web site http://www.fhoa.ca/understd.htm that explains numerous clauses in the oil and gas lease. The internet has an abundance of wonderful information!
It's a very difficult situation in which you find yourself. I wish you the best.
There is often little that can be done given the astonishing unfairness of the old boilerplate leases. However, occasionally they are written in a way that causes trouble for the gas company regarding unitization. Back in the old days they failed, every now and then, to anticipate horizontal drilling and the huge DUs which result. On chance your lease might be one allowing you to bite 'em back, and given so much money is on the line (could be millions), it most likely is worth taking a chance and showing your lease to a good O&G lawyer.
FINDING that lawyer, though, will be a challenge. It is not worth your time or money showing the lease to just any lawyer. You need to find a genuine, very smart, O&G professional. That's not all that easy to do. And I can't tell you how to accomplish it.
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