Replies to This Discussion

Permalink Reply by Laura on March 2, 2014 at 5:38am

getting ready to lease my "Utica/pt pleasant" I have a very competent o&g attorney but am confused on the formations. If my lease is specific to that formation am I protected from any surprises down the road like Trempeleau b zone, Trenton black river, beekmantown etc being included in my lease? Thanks for the information!

Permalink Reply by bo boboski on March 2, 2014 at 10:24am

Swepi/Shell is looking at 26, count em,26 formations on one of their PA. well pads.

Permalink Reply by catt on March 2, 2014 at 12:55pm

You can put in your lease that you only want to lease the Utica/Marcellus.......all others, if they choose to drill them will have to be purchased by the oil/gas company.

Permalink Reply by Kathleen on March 3, 2014 at 3:54am

The Trenton is below the point pleasant.
Your atty should explain this to you with ease.
Many OG co., will not sign one with restrictions but my atty said he felt strongly he could get it for me if I decided to amend my lease to larger acreage (1280). I'm not so sure, since they removed it from the lease and I couldn't get it when I asked after being contacted by the OG co., about amending it.
I hope you get it.
If you do, and they want the Marcellus as an example, they have to make a separate lease. And on and on for each formation your lease clearly shows is not included.

Permalink Reply by Susan A Tippel on March 3, 2014 at 6:52am

What is the point pleasant? How many formations are there?

Permalink Reply by Kathleen on March 3, 2014 at 7:01am

Hi Susan,

You are going to have to go to the ODNR site, since there's a lot of formations.
Here's one link to them.
http://www.dnr.state.oh.us/portals/10/pdf/stratcol.pdf

Permalink Reply by Tom on March 7, 2014 at 6:14am

There should be no reason you couldn't get depth restrictions in your lease.  I just signed in January and got a restriction from the top of the Marcellus to just below the bottom of the Trenton/Black River.

Permalink Reply by Richard Droske on March 7, 2014 at 6:31am

Absolutely, any lease for mineral rights should specify the depths included. Of course the lessor will base the offer on what is included and may not make an offer if the depth restrictions do not fit into their plans. Part of the negotiations and just another important reason to have a good attorney involved on your behalf. You know what they say about the man who represents himself in court... applies to mineral leases as well.

Permalink Reply by bo boboski on March 9, 2014 at 8:09am

I do believe that if a landowner gets to thinking they are so smart that they want to start telling the o&g co.s what layer they can drill, pugh clauses,time limits,etc. they may find themselves on the outside,looking in. You've seen some of the weird shaped production unit maps? some of those parcels that were left out may have been one of those guys!

Permalink Reply by Tom on March 9, 2014 at 10:32am

And you would rather see what?????  See the landowner screwed over once again by the big business that is G&O?

Every situation is different, a well educated landowner should 1) have the advice of a good attorney, and 2) know how far that they can push the negotiations.

Permalink Reply by bo boboski on March 9, 2014 at 10:48am

Well educated is good, greedy, no.  I know of some landowners who would;nt sign when their neighbors did, good leases ,but since they thought they could hold out for more, are still not leased and may never be with their present demands.

Permalink Reply by Kathleen on March 9, 2014 at 11:16am

In other parts of the country, is it common to lease all or strata's?