I few weeks back Holland Land Services were taking leases at Southeastern Equip. Training Center for Shell.  They were taking walk-ins and were having people interested in leasing sign a information form and a land agent was supposed to contact you about the lease.  My question is has anyone heard from anyone at Holland?  I know a lot of people signed a lease that were in the original group that week but was just curious about the other people that signed the information form. 

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The land coalition group in Guernsey leased with Shell (SWEPI)  The lease I signed was 13 legal pages.  All the safety issues where addressed similiar to the ALOV leases you can find online.  All surface issues addressed.  In addition, there are specific requirements for pooled units, minerals reserved, extension of primary with specific definitions for "Operations".  Pugh clause, HBP defined, royalty payments based on gross not net with no expenses from lessor except share of severance tax.  Specific language for Shut-in and negotiated Site Fee or Pad Fee.  We also have a say in location of pad.  Also liability issues, abitration, insurance, & Force Majeure., etc. 

An oil & gas lease is not easy to read and understand.  You must have the necessary language and addendums to protect you in the future.  It is very important to have review of your lease before you sign with legal who is knowledgeable in O & G leases.  Take the time, do not be in a hurry. 

I called Holland today and they emailed me the lease,sorry i didn't ask what the up front or royalty where.





Personally... I would not touch that lease with a ten foot pole, let alone a pen to sign it.  It would need a lot of work before I would even consider it & I am nowhere near legal counsel, just what I have picked up through discussion & attending meetings has shown me so many better leases available...

Slim to say the least.Oil company friendly??

I would say it is very producer friendly as most of the standard leases are.  Another major turn off for me would be the section which gave the lessee the ability to use leased land as a storage field (#9 I believe)...  That is a major no-go for me...

Some guy is cambridge is telling folks that Shell is no longer interested in guernsey co. & is leaving town. He says they are gonna pay the folks who have signed leases,then sell them to some other party. Wrote this off as a rumer,but you never know.  The dude is in the oil&gas business,claims he has inside info. This is the place to iron this talk out.

Sounds to me like typical landman "scare tactics".  With the large amount of landowners that have signed with Shell, it would surprise me to see this actually happen.  However, I have been surprised before & I am sure it will happen again.  Especially in a business as ever changing as the one discussed here.

When I called down to holland the lady said they have quit taking lease to sort through and see what they had.

That too me sounds a bit more reasonable than the guy telling people here that Shell was pretty much pulling out of town.  I mean anything is possible, but I still find a total outage by Shell rather hard to swallow.

I would'nt be supprised if Shell/Enervest/cheasapeake/gulfport,& all the other companies with leases signed around here are now mapping out their holdings,contacting each other,and trading/selling so that they can all get their 640 ac. units /1280 ac. /160 ac. or whatever they want/need  divided up to get this area covered. Enervest may have a 100 ac. leased right in the middle of Shell's unit. Chp. may want a  unit that has a 50 ac. tract leased by Gulfport in it's boundries , etc. etc. Seems to be the only way they can do it, or there's gonna be alot of acreage untouched if they dont trade. many of us have neighbors who have signed with other lessees.  just saying.  

The comments by Bo are right on.  It is seldom a companies leased parcels would be a contiguous amount equaling a cohesive production unit of needed size.  Part of the land grab strategy is get as much as possible in the general region/counties of interest, then trade or sell to each other.  If you look at the google earth maps of production units (provided on this site previously), it is very clear that companies have certain areas.  It is not by chance that they leased all the land in a portion of a county.  It happens by strategically organizing and parcels among them. 

Take a look at the link below (you need to have google earth). This is a map of production units where wells are in place in PA.  One of our fellow site members provided this and it is outstanding. Use the + botton to enlarge the photo until you can clearly see rectangles and other outlines with names on them.  You will notice a color codeing for ease of understanding.  The companies name/symbol will be there ie CHK.  There are a few points to notice.  You will notice that each company has large area as indicated by color with several production units (shapes) in it. If you place your curser over a production area (rectangle or other shape), it will indicate how many acres are included.  As Bo mentioned, when the energy compainies are signing leases they are often taking parcels that are not neccessarily connected.  Leases are traded or sold between the energy companies in order for them to get cohesive production units.  Although it would be "easier" for a company ie. Shell to have 600 acres together from the beginning this is not the norm.  Instead they trade and sell to get these groupings.  The main point here is that if a parcel is going to become a part of a production unit it will almost certainly be with parcels from other land groups or individuals as the organizing between the companies takes place.  Get leased and see where we fall in.


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