Replies to This Discussion

Permalink Reply by David Brooke on April 19, 2011 at 12:11am

I had heard this too, earliar this year.  Consultation with an attorney was two-fold.  1- w/o specific language in an existing lease with them to limit their rights to just one depth or area of drilling, they arguably have rights to as deep as they wish to go.  2- depending on the age of the lease with them, it could probably be successfully argued that there is no language in the existing lease in re: marcellus or utica because no one, way back then when the lease was written, would have ever contemplated that depth or area for drilling and so the lease was never intended to cover that/those areas for rights of acquisition.  The problem is, that there is no case law on this in Ohio, according to my attorney.  There may be some else where, where this deep drilling has been going on longer, but not here.  It is a court battle that could be expensive to any one party to pursue, unless they're made of money to begin with.

 

     Of course, the other option is to check your existing lease for its exact language and then contact Atlas/Chevron to see if they are will to renegotiate.  Because they currently have the rights by means of your existing lease, there may not be anything you can do to get the up front bonus for signing that has been so popular lately.  But, you may be able to negotiate better safe guards and the like....don't know.  Let me know what you think, maybe your position is similar to mine.  Property is in Mahoning County, Berlin Center.

 

Permalink Reply by Dan S. on August 4, 2011 at 1:12am

Have you been approached to sign a consent form by Chevron on existing Atlas leases?  What are the advantages/disadvantages if any?

Permalink Reply by Shower Bath on August 18, 2011 at 2:07am

Not Chevron/Atlas, but a new joint venture between Consol/Nobel Energy announced this AM.

http://phx.corporate-ir.net/phoenix.zhtml?c=66439&p=irol-newsro...

 

Randy