Fairview Township questions

We signed a lease with Phillips in 2007 which was sold 2 years later to Atlas. No drilling has been done to date. The lease is due to expire early next year. We have been contacted by letter and voice mail by a representative of Chevron to I presume, extend the lease.

Does anyone know what the current level of interest is in Fairview Twp. and what the bonus / royalty amounts are that are being offered? The amounts I am seeing here being offered in neighboring townships is much higher than we were given in 2007. If there is still an interest in Fairview, I would rather let the lease expire and explore my options.

Also, is there a landowner group that has been created that includes Fairview?

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Replies to This Discussion

Permalink Reply by ShaleAdvice (Steven C. Townsend) on August 9, 2011 at 9:56am

I would be careful of only looking at the dollar amount for royalty and bonus payments.  Although those are very important factors to consider when deciding whether to lease, there are other factors you must take into consideration.  Remember the lease is written to protect the oil company, not the landowner or mineral rights owner.  Also, there are a number of clauses and provisions that should and must be included in addendums that will protect your current and future interests. 

 

Steven Townsend

Permalink Reply by David Good on August 9, 2011 at 10:15am
That is another reason I do not want to renew our current lease. This time around I want to work with a lawyer. Also I would like to know if there is a landowners group that includes Fairview Twp. in existence to help be better informed and have the added benefit of the strength in numbers.
Permalink Reply by ShaleAdvice (Steven C. Townsend) on August 9, 2011 at 10:24am

Landowner groups are great, but realize that your needs may not be identical to your neighbors.  Your lease should be catered to you specifically.  There are attorneys out there who are dedicated to the landowner from start to finish.   I wish I could give you specifics, but this site is not the right forum.  You should google those who handle marcellus disputes.

 

Steve Townsend

Permalink Reply by ShaleAdvice (Steven C. Townsend) on August 9, 2011 at 10:25am
Permalink Reply by David Good on August 9, 2011 at 11:01am

I am trying to educate myself on the subject as much as possible to be as informed as I can be.  This time around I will be working with an attorney.  From just what I have learned recently, I see a number of ways my current lease falls short of protecting our property and our future interests.

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