Replies to This Discussion

Permalink Reply by George Ritchie on January 8, 2012 at 3:58am

Was your original lease for vertical or horizontal drilling?

Permalink Reply by Dozer47 on January 8, 2012 at 11:15am

The old lease is very vague but permits drillng to any strata or stratum.  It does limit the unit size to 160 acres.

Permalink Reply by Jan R. on January 18, 2012 at 9:00am

Wade,

I live in Guernsey Cty. and have a 1964 B & B Lease to all stratas.  We currently have production on the shallow rights.  Nothing has been done on the deep rights for over 20 years and it has been sold to Inervest.  We are looking into possibilities but have been told that we can't lease deep rights as the lease holds everything by production.  Any info woulod be appreciated.

Permalink Reply by Finnbear on January 19, 2012 at 8:09am

What does your lease say about pooling or unitization? Is there an acreage specification?

Permalink Reply by Jan R. on January 29, 2012 at 11:29am

Our lease allows for unitization.

 

Permalink Reply by Finnbear on January 29, 2012 at 12:26pm

Is there any specification about unit size?

Permalink Reply by Sonja on January 8, 2012 at 6:57am

Wade, I discussed this same letter in our area under "Royalties".  We are getting the same letter, we met with them, and it is a way to scare you into allowing them to modify and increase the unit size.  From the replies that I received, it looks like a way to be able to drill less wells, and have more land held by production.  Don't sign or agree to anything until speaking with a knowledgeable attorney.

Permalink Reply by dr j on January 8, 2012 at 8:13am

Mr. Carroll

Without knowing the particulars of your lease and from own situation which was not exactly as yours but close -

It is apparent CHK cannot "use" your property based on the terms of your current Belden and Blake lease.  Therefore they need a "modified" lease to include you in a unit.   You need to do a couple of things IMHO.

1) you need to sit down with a good oil and gas attorney.

2) you need to speak with your neighbors who have recently signed leases with CHK or Range etc.   You need to find out the current bonus/royalty and addendums that are being signed on leases in your area.    You have every right to ask for the exact same lease they are currently signing with your neighbors - basically a NEW lease with better royalty, bonus and addendums.   I am betting your old lease does not allow unitization at all- so they can't use your property at all unless it's only your property in the unit.   You may have a enough for that to happen but most people don't- and allow the drilling operation be economical for the driller.  In this case it's better that you do not - as that gives you this opportunity to get a better lease with more money and better protections.   Remember- you are "only" asking for what your neighbors are already getting.  

I don't know current Carroll County climate- but we are not far from you and the current leases are very landowner friendly with ~ 6000/acre "bonus" and 20% gross royalties- lots of addendums.  

Whatever you do- DO NOT resign the old B/B lease with a few adjustments allowing you to be unitized.  Start from scratch if you are able.

   

Permalink Reply by Mark Allen on January 29, 2012 at 10:19am

We are using the services of ohioacres4u llc. They represent landowners and have been helping with this very issue.

Permalink Reply by Robert Bond on January 8, 2012 at 9:29am

Go to the main page see discussion "Is it time for a HBP landgroup"   When the lease is brought up for modification anything can be done.  O&G will only want to talk about what they want so you may have to stick to your guns  I think this would be best approached as a group that have been contatcted.

Permalink Reply by karen brown on January 18, 2012 at 7:52am

I just had an article sent to me last week it was from a Pittsburg newspaper and one of the writers sent it to me.  Becareful of Chesapeake and Range.  If your neighbors are getting the same type of letters you may want to form a land group.  Have a couple of meetings as a think tank and list things you are concerned about and what you want.  Hire a good attorney or better yet a gas broker.  We have a broker who has just negotiated our second lease and he was great.  He wrote our leases and tailored them to our concerns and much more stuff that we will never think of.  Do not add on to your old lease.  Have a new one written.  Make sure the royalities are gross and watch the acreage size of units.  Good luck. 

Permalink Reply by Poison Ivy on January 19, 2012 at 4:35am

Can you give me the name of the gas broker you used?

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