Michael Walentosky

Hi Mike

I signed with Shell for $3250/acre and 18%.

Here are some ideas for addenda to a lease.

• Make sure the royalty is gross, at the wellhead rather than net after deductions
• Pugh Clause
• Restore premises to pre-drilled conditions
• Shut in limit, 5 years or less if you can get it.
• Oil and gas only (not things like gold, uranium, copper, etc).
• Lease release - just states that they need to provide you a written release if/when the lease is terminated for any reason.

Hope that helps.

I don't have any idea of how Shell is going to proceed. It seems very strange that they called people that were to sign this week and told them the offers were off the table. If they will not sign these people then they will sign very few.

They might try to sign people adjacent to properties like yours if they need them to form a unit but i am just guessing. And depending on your lease, they may have the option to reject your parcel or others. Most leases give them that option.

You should call your land man.  If he doesn't return your calls. Shell has an office in New Castle directly across the Giant Eagle on Butler Rd (422)  Go there and try to get some answers.  And let me know what the tell you!