Replies to This Discussion

Permalink Reply by 0ym9x5ag7ury2 on March 19, 2013 at 9:15pm

Susan,      Take the lease to a lawyer and have him explain why you shouldn't sign it.

Most of us signed a 5 year lease with the same bonus money to extend the lease for an additional 3 years if we are not drilled under. You would miss out on the 2nd Bonus. With a 10 year lease the driller can wait to drill your land last while they go after the 5 year leases that are about to expire.

Huntley & Huntley don't drill wells so they are middle men that will sell your lease to a driller and take the money you should have gotten. Land men have been doing this for 100 years and landowners still haven't figured it out until after it happens. 

The money looks good so you are probably in a good location. You do own 4 layers of shale in PA, and may have wet gas as well. The Marcellus is closest to the surface, then Utica, and Devonian shales which are made up of 2 more layers of oil or gas.   What do you think your minerals are really worth?

 

 

Permalink Reply by Teresa Pugliese on June 14, 2013 at 10:50pm

Ron -  with a 5/5 lease, if the operator has signed properties around you and can access your gas without offering you a reup after the initial 5 years, then there is a chance they would not resign you to avoid paying the 2nd bonus and extract the gas under your property anyway.  Right?

Permalink Reply by Archer Man on March 22, 2013 at 4:09pm

This is the first time I've heard of a 10/10 lease.  More commonly are the 5/5 leases from what I understand.  I agree with Joe's comment, thats ridiculous!

Agree with Ron also, go see an attorney!  Good luck!

Permalink Reply by Teresa Pugliese on June 14, 2013 at 10:46pm

Huntley has offered me a 5/5 or a 10 year lease.  They would not commit to the 5 year reup fee.  It was to be negotiated at a later date.

The real issue with their lease, like other operators, is that it is HEAVILY skewed in their favor.  My attorney created an extensive  addendum containing language to bring the lease terms back to center and afford a bi-directional relationship.  Huntley was less than cooperative and was uninterested in being fair and ensuring the lease was mutually beneficial.

Look at the Severability language in the template - the landowner basically has no right, for any reason, to terminate the lease.  We requested alternative language that would afford a provision for notice of breach and they refused.

Do not sign anything without an experienced Oil and Gas lease attorney assisting you.

Permalink Reply by Geo5 on June 15, 2013 at 8:40am

Chevron just recorded a lease that was for ten years in the butler county courthouse.  The parcel was origanally leased by atlas which Chevron bought out.  From what i can tell, there is no option for an extra 10 years. I believe the land is owned by someone out of the area, it boarders one of my properties.

Permalink Reply by FairMktValue on June 15, 2013 at 9:08am

Just say NO.

And as almost everyone has stated - see a lawyer before you sign anything!

I can see no possible benefit to you signing a 10 yr lease. Ron is 100% correct.