Beck Energy Leases

Our farm had a lease with Beck Energy recorded in 2002. Beck never started a well on the property and never made any of the very modest annual delay payments. We contacted his company years ago and indicated we considered the lease null and void but they never responded. We were recently contacted by lawyers initiating a class action suit against Beck for the purposes of legally releasing landowners like us from the leases which were thought were void but may not be. The attorneys want to be paid on a percentage of your new lease bonus payments and a percentage of your royalties which they plan to negotiate for the class action members with an oil company. These bonus percentages alone are about 600% more than landwoner groups operating in the county are charging now due to the anticipated litigation expenses. The attorneys implied that Beck may be trying to sell these leases (maybe over 30,000 acres in Monroe County) to a high bidder and pocket the multi million dollar differences.

 

Does anyone out there have more information about how they have gotten around a Beck lease? Unless Beck is stopped there will be millions leaving the county with nothing to show for it! 

 

Beware that if you have a Beck Energy lease there may be some entanglements which will in one form or another likely diminish the value of the lease that you may be hoping for.

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Replies to This Discussion

Permalink Reply by Darrell Cochran on September 27, 2011 at 6:39am

Gary,  I had an 18 month lease with Beck Energy that expired about 2 years ago.  I also didn't receive any of the delay payments.  I did take my lease to Jennifer Garrison in Marietta when she was doing some of the open houses and she confirmed the lease had expired. 

 

Permalink Reply by Finnbear on September 27, 2011 at 7:10am
I don't think I would participate in that class action suit. If Beck truly violated the lease terms to the point of a possible nullification, I would find a good O&G attorney and get MY lease voided, not involving any other matters or landowners. After that process was COMPLETE, I would start looking at my future options for my now free and clear oil and gas rights. The class action people are just seeing $$$ and want an easy cut, UNLESS there is more to this story...
09bp5t05myjl3Permalink Reply by 09bp5t05myjl3 on September 27, 2011 at 9:53am
I agree with Finnbear don't waste your time with a class action only people come out ahead is the Attorneys, especially if your lease is expiring soon, You didn't say but I'm assuming it was a 10 yr lease & if so unless they shut you in by Production (which in those old leases they can do pretty easily)  should be expired in 2012 Right?
Permalink Reply by Gary Starr on September 27, 2011 at 11:03am

Tom

 

it was a 10 yr lease. no drilling so just delay rental applied but no payment so in my opinion void. I need an attorney to help me clear this if I'm to avoid being a part of the class action suit, but everyone I've contacted is too busy right now. I have a concern that this may affect others in Landowners Groups in Monroe County.

 

Gary

09bp5t05myjl3Permalink Reply by 09bp5t05myjl3 on September 27, 2011 at 12:27pm

Gary I agree you probably need an atty & your right a lot of people are stuck in these leases and have been taken advantage of, I have a neighbor that signed a lease in May of this year for $100 per acre that is just dishonest knowing what we have here, Of course they are elderly farmers with no internet and until last few months nothing was going on about this in the local news,

 

   Gary ypu may ned to go out of town for an atty possibly canton or Columbus and be careful with them also, there is a post on belmont county here " What about people that already have a  current lease Pre Shale) & john jumped on & offered to help, I asked his fee & its 15% of your bonus So if you get $100,000 he gets $15,000 (if they get you out), better than the class action but again in my opinion seems like a bloosdsucker swooping in to make a big buck off someone elses hardship.  The work they will put in shouldn't be more than $500 maybe $1,000 and my guess if they can't send a lttr & resolve move on to the next one!

Permalink Reply by Finnbear on September 28, 2011 at 3:09am

See my response to that Belmont thread. I think the same way you do about the "offer" made there. Lots of people coming out of the woodwork who want a cut.

Finnbear

Permalink Reply by Gary Starr on October 2, 2011 at 4:17am
A bad title in this case is any oil and gas lease that is still recorded. The oil companies will typically do a top lease (after their discovery of the recorded lease during title search) which will not come into effect until the existing lease is legally removed. Whether or not they would help you remove it is questionable. We have initiated contact with an attorney before signing a new lease in order to make the proper legal case to the Lessor by way of certified letter notification which is required by Ohio Law if his address can be determined (if not - a public advertisement is necessary). If the Lessor agrees or does not respond to the notice within 30 days we can file the Affidavit with the county recorder and they will remove the recorded lease. If the Lessor disagrees we will file suit with probably a damage claim for his attempting to tie up the property without honoring the lease terms and disallowing us to derive income from it.
Permalink Reply by Gary Starr on October 4, 2011 at 1:06am
Nooooo!  Thank goodness.But Ohio law is reasonably clear on this and accessible (ORC 5301.332). And I have an attorney to help with this now (but not from Monroe).
Permalink Reply by Finnbear on October 4, 2011 at 1:10am
Permalink Reply by Gary Starr on October 4, 2011 at 2:13am
Summit, near Akron. Not an O&G specialist but capable on leases with resources and been my lawyer for years. He's not out there looking for O&G work.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 29, 2011 at 3:51pm

It depends how your lease was worded.  If it is an unlessed lease then payment must be made.  Some leases include terminology that keeps them going even if payment is not tendered.  I have a lawyer who would help you if you'd like.  He's been specializing in O&G for three decades.  He'd also not rake you over the coals for cash.  Send me a private message if interested.  

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