Replies to This Discussion

Permalink Reply by tacoma7583 on March 12, 2012 at 2:03pm

Your HBP is probably an exist unit of 40 acre or something like that.  Shape maybe is changing from the traditional square unit from a clinton well to a more horizontal shape.     So that is where changing the size would be needed most are going to say it needs to say 640 or 1080 acres max.   Probably should read continuous and strike out the non continuous part.

Just my .2

Permalink Reply by Billy Park Whyde on March 12, 2012 at 3:02pm

Looks like time to renegotiate your lease as " "Lessee is granted the right to change the size, shape and conditions of operation or payment of any unit created"  A new lease 

Permalink Reply by Curt C on March 12, 2012 at 3:15pm

I was thinking the same thing. If they can change or ammend the lease, doesn't that open it up to new negotiations? Landman says if we don't sign, cpk will just drill around us. I need to talk to the neighbors and see what they're doing.

Permalink Reply by Billy Park Whyde on March 12, 2012 at 3:34pm

They don't want to drill around anyone! If they wanted to drill around they wouldn't be asking. If you cant get info from your neighbors look them up at your county auditors office and then check the recorders office to see if they are leased and if so with whom.

 Demanding a current value and percentage is only a business expense for them. If they are asking you they already have plans on what they want to do. 

Permalink Reply by Curt C on March 12, 2012 at 3:44pm

We do not have a lot of acreage but the neighbors do. I would assume that it would be easier to negotiate if the neighbors were on board? Or would cpk be more willing to negotiate with someone with less acreage since it would be less expense for them?

Permalink Reply by Billy Park Whyde on March 12, 2012 at 3:54pm

I would find out where my property was in relationship with what they have, if the have a property on the  opposition side of you they want to reach by drilling under you from one side they might not be able to go around the ends of your property.

Permalink Reply by Inchworm antenna on March 12, 2012 at 4:39pm

Why is no royalty listed here? If they want you to give them permission to untiize, then I would tell them to stipulate a royalty worthy of their current leases.  Say 18-20% GROSS.  I'd bet your old lease that has you HBP indicates just a 12.5% net, which is identical to 8-9% gross.  Don't let them take you for a ride on the royalty, or your royalty may be half as much as it should be.  This should be your single most important issue.  I would spread the word to others in the same boat who are HBP in the proposed unit, and form a mini-group, where no one signs the unitization permission unless a worthy royalty is presented.

Permalink Reply by Billy Park Whyde on March 12, 2012 at 5:01pm

United We Stand  is a formidable object.

Permalink Reply by Dale on March 13, 2012 at 12:59pm

If you are asked to sign an ammendment, then your entire lease is open for renegoting. I was at a meeting in Canfield (put on by Farm Bureau) and this was stressed. Do not believe the landman!! They do not have your best interest - they just want you to sign! Also, very very stressed was to have an Attorney review all leases before signing. Make sure the attorney is well diversed in oil/gas leasing - not all are - this is very very important!!

Also, ask them why they want to renegotiate. If their answer is "for the integrity of the resource" then they need your property in order to drill! They can not drill without your property.

 

Permalink Reply by Michele on March 12, 2012 at 11:35pm

This just happened to us. Our lawyer changed a few things. It means that they can put you in a unit of a million acres if they need to.

They wouldn't negotiate anything else and our neighbors wouldn't call us back. It seems that if you ask questions and try to protect yourself you get a penalty. Silence sometime speaks volumes. We got a whopping $10.00 that will be framed.

Michele

Permalink Reply by hunter4440 on March 13, 2012 at 12:41am

Michele...hopefully you will be apart of a pooled unit with several wells. If so, you could make a lot more than the bonus money. A larger royalty would have been nice, but I too, had no luck in receiving that when I amended a couple of leases. Good luck and hope you are sitting on the mother load.

Permalink Reply by Curt C on March 13, 2012 at 12:53am

The original lease is 12.5% and of course No bonus. The landman doesn't seem interested in negotiating (not that I thought he would be). I expect to be treated fairly and hope to negotiate a higher royalty, but I don't want to be passed by either. Our neighbor (a relative) owns over 150 acres that borders us on 3 sides. Hopefully they will have more luck negotiating.

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