Replies to This Discussion

Permalink Reply by Nick Trolio on April 7, 2011 at 6:48am

I have no clue. What rumors?

Permalink Reply by Paul Martinelli on April 7, 2011 at 6:53am

That CHK,  for instance as leased the deep rights from Cubby drilling inc,  as an example. Thereby giving CHK access to all the clinton well acreage owned by Cubby.

 

I'm sure the deals are being made....just no body talking about it.

 

 

I mean if I have free acreage.....I sure would love to know who picked up the deep rights to the clinton well on my parcel...or across the street for that matter.

 

 

Permalink Reply by Nick Trolio on April 7, 2011 at 7:02am

Cubby Drilling?? I am young hahahh.... Regardless they will get every acre they can possibly get. Which is a good thing,

Permalink Reply by Bill anders on April 28, 2011 at 8:11am

if you have a clinton well and they bought the deep rights there is nothing you can do as long as that clinton well is producing.  you are now leased by CHK as well as Cubby

Permalink Reply by Mark Allen on June 17, 2011 at 9:20am

why would you, the lease can be assigned if wording agrees,however where in the Cubby lease does it mention horizontal drilling or as for that horizontal spacing. Is it not limited to the old 40acre spacing of the vertical drill?

 

I would watch this very close and demand some help from the regulators as to the proper permitting for a lateral leg on a vertical lease.

Now the other option is to draft a new lease agreement with current language that address's such language to allow a new formation,  new unit size..........by the way folks, what is the unit limit for horizontal drilling?

 

Wake up OHIO! 

Permalink Reply by Paul Martinelli on June 17, 2011 at 9:36am

Don't know the unit limit size off hand.....

 

But with the Clinton Well subleases.....there is gonna be issues.

 

Most of the old leases don't allow for "pooling" , so they are bound by the acreage from the original lease.  So now that all these old leased acres have been subleased....they will be requesting lease modifications to allow the pooling needed for deep horizontal drilling.

 

Now comes the interesting part.... All those old leases werew at State minimum of 12.5% and weren't very landowner friendly.  

 I suspect the current lease owners (running the shallow wells), subleased the land for the signing bonuses that land owners are currently getting (~2000/acre)...or they leased for the difference in royalty payments...which is ~5% in most cases....who knows...I'm sure nobody is talking about the deals.

 

A sweet deal for both sides. Unless of course those old leases  are worthless to a deep well driller due to the no pooling issue! Only time will tell.

Permalink Reply by Mark Allen on June 17, 2011 at 10:42am

if the state regulators care about there property tax and landowners, they will simply withhold the drilling permit until a current and marketable/useable lease is presented to the mineral rights owner.

The big boys need to learn that it is our land, our natural resource and landowners and mineral owners will succeed if we stick together.

A one time revision of the lease, which occupies the leasehold.  Get ready for that letter or the knock on the door;  ''we want to talk to you about developing your natural gas''...SIGN HERE!

Permalink Reply by Daniel B. Gadd on April 10, 2011 at 6:38am

Traeth Corporation might Depending on what (can) be done

Permalink Reply by Paul Martinelli on April 22, 2011 at 9:39am

CHK is actively advertising for leasing land  and good  drilling PR in Tusc. county.

 

Anyone know when they will start drilling?    I don't see any permits issued from ODNR site.

Permalink Reply by Rich Koehler on June 17, 2011 at 2:47pm

I'm over on the west side of Wayne county.  The big deal over here seems to be that Columbia has (had) storage leases in the Clinton which they used to sell drilling rights to Anschutz, who in turn sold them to CHK.  There are all kinds of leases, but most do not specify a layer or formation limit.

In our case, an old lease (1921) and a gas well of depth we have yet to determine, has gone through a variety of assignments and reductions.  The latest seems to be in 04, when the upper rights, from the top of the Queenston Shale up, were sold by Columbia while everything below that was retained.  This is a good example of a really bad lease.  The royalties are only on the oil, and gas rental has been reduced due to low volume to just free gas for the one dwelling that was on the property when the lease was written.  In addition, it gives the use of gas and water to the driller to drill and operate wells.  But on the bright side, there is also free gas for butchering and buttering!

 

This lease is an example of why everyone should be in a good landowners group with some seriously good attorneys on retainer.  I think there is a clause in that old lease that opens things up some, but that's for the attorneys. 

 

Read your lease carefully.  Make notes about each paragraph as you read it to make sure you understand just what it says in between the parties of this part and that part or lessee and lessor and all the other verbiosity intended to make it something only lawyers will understand.  You can do it you read carefully!

Permalink Reply by dan a carson on June 24, 2011 at 6:12am

Good advice.   You need to join a landowners group with solid representation, select a core consultant who knows the business, legal normally can be tagged in as their fees will be picked up by the buyer of the lease.  All in all I have seen deals completed for $100.00 per acre out of the bonus.

 

Beware of those who try to take a high percentage, plus royalty percentage-some are even charging legal on top.

My cousins received email this morning from A GROUP offering $2700 @17.5% through Chesepeake, a quick you must sign today deal...or else it goes away.

It is amazing on how fast things change, the groups are getting the high dollars. I personally want to wait until the results of the Carroll and Columbiania wells come out, not to mention the true figures on the Buell well.  

Permalink Reply by Chris Irwin on August 12, 2011 at 12:56pm

Tipka has subleased several to Chesapeake.

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