Comment

Comment by Chuck White on November 18, 2010 at 12:03am

This PDF has a lot of good information.

http://www.wvsoro.org/resources/minerals_royalty/Gas_Lease_Addendum... .

Comment by Chuck White on November 17, 2010 at 11:58pm

We are in Jefferson County, these are the Addendum item excepted by DPS Penn for Chesapeake

EXHIBIT “A”

This Exhibit "A" is attached to and made a part of that certain Oil and Gas Lease dated , 2010, by and between
, as Lessor, and DALE PROPERTY SERVICES PENN, LP, as Lessee. If any of the following provision
conflict with or are inconsistent with the printed provisions or terms of this Lease, the following provisions shall control.

Lessor hereby warrants that Lessor is not currently receiving any bonus, rental, production royalty
as the result of any prior oil and gas lease covering any or all of the subject premises, and that there
are no commercially producing wells currently existing on the subject premises, or upon other lands
within the boundaries of a drilling or production unit utilizing all or a part of the subject premises.


Consent of Assignment
Lessee shall be required to obtain consent from Lessor for any assignment of this lease, consent not to b
unreasonably withheld, delayed or conditioned. Provided, however, that consent shall not be required in
the event of an assignment by Lessee:

(a) to an affiliate, subsidiary, or internal partners;
(b) in consequence of a merger or amalgamation;
(c) of all or substantially all of its assets to a third party;
(d) of all or any portion of the lease to Chesapeake Appalachia, LLC or an affiliate,
subsidiary, or internal partners; or
(e) of all or any portion of the lease to Statoil USA Onshore Properties Inc. or a
affiliate, subsidiary, or internal partners.

Arbitration
Any questions concerning this lease or performance there under shall be ascertained and determined by
three disinterested arbitrators, one thereof to be appointed by Lessor, one by the Lessee and third by the
two so appointed as aforesaid and the award of such collective group shall be final and conclusive.
Arbitration proceedings hereunder shall be conducted at the county seat or the county where the Lease is
filed or the action occurred which is cause for the arbitration, or such other place as the parties to such
arbitration shall all mutually agree upon. Each party will pay its own arbitrator and share costs of the third
arbitrator equally.


Hold Harmless
Lessee shall indemnify and hold Lessor harmless from any and all liability, liens, demands, judgments,
suits, and claims of any kind or character arising out of, in connection with, or relating to Lessee's
operations under the terms of this Lease, including, but not limited to, environmental issues, claims for
injury to or death of any persons, or damage, loss or destruction of any property, real or personal, under any
theory of tort, contract, or strict liability. Lessee further covenants and agrees to defend any suits brought
against Lessor on any claims, and to pay any judgment against Lessor resulting from any suit or suits,
together with all costs and expenses relating to any claims, including attorney's fees, arising from Lessees
operations under the terms of this lease. Lessor, if it so elects, shall have the right to participate, at its sole
expense, in its defense in any suit or suits in which it may be a party, without relieving Lessee of the
obligation to defend Lessor. The terms hereof do survive the expiration or surrender of this lease and/or the
completion of operations.


No “Right of First Refusal”
Lessee is not granted right of first refusal to extend this lease.

Audit Clause
Lessee further grants to Lessor the right annually to examine, audit, or inspect books, records, and accounts
of Lessee pertinent to the purpose of verifying the accuracy of the reports and statements furnished to Lessor, and for checking the amount of payments lawfully due the Lessor under the terms of this
agreement. In exercising this right, Lessor shall give reasonable notice to Lessee of its intended audit and
such audit shall be conducted during normal business hours at the office of Lessee. Such examination and
audit shall be at the sole cost and expense of Lessor.

Disposal Wells
Lessee is not granted any right whatsoever to use the Leasehold, or any portion thereof, for construction
and/ or operation of any disposal well, injection well, or the construction and/ or operation of water
disposal facilities.

Ad Valorem Taxes
Lessee agrees to pay a proportionate share of any increase in ad valorem taxes assessed against the leased
premises, which is based upon the value of oil and gas production from, or reserves under, the leased
premises.

Shut-In Limit
Notwithstanding anything to the contrary herein, it is understood and agreed that this lease may not be
maintained in force for any continuous period of time longer than three (3) consecutive years after the
expiration of the primary term hereof solely by the provision of the shut-in royalty clause.

No Storage Rights
Notwithstanding anything herein contained to the contrary, Lessee agrees the herein described leased
premises shall not be used for the purpose of gas storage as defined by the Federal Energy Regulatory
Commission. Any reference to gas storage contained in this lease is hereby deleted. If Lessor wishes to
enter into an agreement regarding gas storage using the leased premises with a third party, Lessor shall first
give Lessee written notice of the identity of the third party, the price or the consideration for which the
third party is prepared to offer, the effective date and closing date of the transaction and any other
information respecting the transaction which Lessee believes would be material to the exercise of the
offering. Lessor does hereby grant Lessee the first option and right to purchase the gas storage rights by
matching and tendering to the Lessor any third party’s offering within 30 days of receipt of notice from
Lessor.

Pooled Production Unit Limit
Lessor grants Lessee the right to pool, unitize this leasehold with other lands whether contiguous or non
contiguous to create a drilling or production unit in a total acreage not to exceed 1,920 acres. However,
Lessee may request Lessor waive this provision and increase the drilling unit to an amount equal to Lessees
directional drilling requirement. Lessors consent to the increased drilling unit shall not be unreasonably
withheld provided that Lessee shall provide a proposed drilling plat which provides an explanation for the
increased drilling acreage requirement.

Special Warranty Title
It is understood that Lessor warrants title to said property only with respect that the title is good to the best
of Lessor’s knowledge and Lessee agrees that no claims will be made against Lessor pertaining to warranty
of title.

Water Usage
Lessee agrees not to use any water from Lessor's water wells, ponds, springs, or creeks without Lessor's
written consent. Notwithstanding anything to the contrary herein, Lessee is not granted any right to drill
any water well on the leased premises to obtain water for injection or use in drilling operations without
written consent from Lessor.

Location Approval
Provided that Lessor is the current surface owner of the affected lands at the time of Lessee’s surface
operations, Lessee and Lessor to mutually agree on all drill site, pipeline and access road locations, consent
not to be unreasonably withheld, delayed or conditioned by Lessor.


Facilities
Lessee is not granted any right to construct any gas treatment or processing facility on the leased premises,
including but not limited to separators, dehydrators and compressors, without Lessor's separate written
consent, such consent not to be unreasonably withheld, conditioned, or delayed.

Comment by jerry allen on November 8, 2010 at 4:24am

The interest in Eastern Ohio gas leasing could change for the better soon.
Check Consol Energy quartely production report to shareholders and you will see that they have a vertical unfracked well in the Utica in Belmont County producing 1.5 million cf in a 24 hour period. Additionally, David Hill Drilling Company is about to reach the same depth in Belmont. Enter Belmont County Utica Shale in your search engine and click Consol's Quartely Production report (10/13/10) Then click News 9 Special Assignment:Deeper Drilling. If Consol & Hill both find the same the producer interest will change dramatically in our neck of the woods.

Comment by Al Cramblett on November 8, 2010 at 4:04am

My understanding is that Wellington is an independent broker. Their business approach is to obtain an oil and gas lease for a very minimal down payment. This lease then gives Wellington the right to take up to four months to broker (sell) that lease to a drilling company. A fellow landowner had told me that Wellington charges 10 percent of the signing bonus plus a portion of the royalty. I agree with Nate's comment. (See Peter’s 25 September comment in the Harrison County Lease Offers thread)

Comment by Rod Dietrich on November 7, 2010 at 2:33pm

thanks for the info Nate

Comment by Nate on November 7, 2010 at 2:30pm

Wellington wants to make landowners groups and be your agent while taking a % cut and possibly a cut on your royalties. You don't need them.

Comment by Rod Dietrich on November 7, 2010 at 5:25am

Thanks for the information Al. Have you ever heard of Wellington, out of Pa. ? A guy from there called me a couple of weeks ago scheduled a meeting and never heard from him again. Rod

Comment by Al Cramblett on November 7, 2010 at 3:02am

A reliable source recently told me that Kenyon is now offering $1500 per acre with a 15% royalty. Be patient, the offers continue to rise.

Comment by Al Cramblett on October 15, 2010 at 10:20am

Thanks Clyde. Here's more detail on the 20 October forum:

http://ofbf.org/uploads/Oil_and_Gas_Mtg_10-20-10.pdf

Comment by clyde vanhoose on October 14, 2010 at 11:44am

Rod and Al I found this in last weeks Farm and Dairy paper. The Ohio University Eastern on Oct 20 at 7 pm will be having a meeting on Marcellus Shale.
Christopher Perry supervisor of Energy Resources Group will cover geology of Marcellus Shale in Ohio.
Thomas Murphy, Extension educator will present information on how the activity in the Marcellus Shale in Pennsylvania has affected individuals, businesses and communities
For more information call Mike Lloyd at 740-732-5681 or Stephen Schumacher at 740-695-1455

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