I've searched this site for hours and can't find the answer to my question,so here it is: if my lease limits the acreage to 1280 acres,how can Penn energy production units exceed that to be 3,826.7 acres? Help with this one would be greatly appreciated.
Have you brought it to their attention and what did they say? They need to redo your lease with an addendum.
Thanks for the reply.I have not called them yet until I can gather all the information I can so I am able to talk intelligently. I will post their response once I do make contact. I want to make sure I'm not missing some fact that everyone but me knows. I have one of the better Butler county landowners lease that was negotiated with Shell and thought one of the other lessors might have already addressed this issue.
I had the same thing happen with Rex Energy about five years ago. I got more money per acre to change the language of my lease from 640 to 1280 acres in a unit. Lew
I called the company on this and had to talk to a landman. He responded quickly saying they are aware of lease language and he even sent me a copy of my lease to show they are on top of everything. However, he had to ruin my confidence in them when he added that they would be sending out the actual production unit size "IF" they can start drilling by securing leases needed on holdouts that are preventing the additional wells from getting drilled for now. I know for a fact that these wells have already been drilled but not yet fractured because of the reports they file with DEP and my own observations from driving by. I guess he had to give me incorrect information to get me to drop the issue and hope that someday they will secure the needed leases so they can drill and I shouldn't push my luck- this is the feeling he left me thinking about. Why does this industry have to be so controversial? Why do they lack a moral code of ethics? (rhetorical questions, no need to reply). I wrote this not to complain but to just give an update on my findings to share with anyone in a similar situation. Don't trust, verify everything!
Mea Culpa ( my fault) on this posting. I want to correct myself on the above comments and share some insight. I received a phone call from Penn Energy Resources concerned about how I feel about them and to discuss and resolve any questions or concerns I might have. We had a very long , enlightening talk and the short version is 1) I was really wrong on this one. 2) This is a company that actually wants to earn and keep a stellar reputation for treating landowners fairly. 3) They were not just blowing smoke- They mean what they say.. 4) They are a financially strong, reliable, organized entity and want to alleviate any landowners concerns.
I was really impressed that they took the time to call me to see if there was anything they could do to help me find answers. They answered all my questions and gave me a contact name and number if there is anything else I get concerned about. Penn Energy and it's current employees are building a reputation for honesty and good morals in business. This may sound a little like I'm writing a commercial for them but that's how much they impressed me over our phone call. I feel completely different about this company as compared to some of the others out there. Anyway, I just wanted to share my info and correct my previous comments. I didn't want to give a one sided opinion and I'm glad I heard the rest of the story from the horses mouth. Have a great day everyone.
So what was the final verdict on changing your unit requirements?
They are going to follow my original lease limitations. I guess it's only you and me with interest in the Renick site. I never see anyone else providing input or comments. Thanks LewPa for talking with me.
I don't have any interest in the Renick site per se, but was interested in the topic. I'm also getting royalties from Penn Energy and glad to hear your good comments about them. Glad things worked out to your satisfaction. Good luck to you in the future!
Thanks buddy, you too.
With the price of gas, they're just barely staying afloat as a company!!
Wow! You called that one right on the money. I just got a letter dated 1/21/2020 saying they are shutting in the Renick pad until around 4th quarter 2020. No more royalties for awhile. It was really great of them to notify me of what's going on. I am still expecting royalties for a couple more months as they pay two months behind, unless they did the shut in one or two months ago. The letter didn't specify what date the shut-in was to happen. Good thing I don't depend upon this money to pay my bills. The silver lining in all this is that maybe gas prices will be higher when they start producing again. Good luck to everyone in the Renick site, and hang in there.