Replies to This Discussion

Permalink Reply by JoKlause on August 20, 2011 at 9:56am

Chris, glad to hear things are looking good for butler Co...can you give more info?? because I heard Shell is giving good upfront $$, but the lease itself isn't very landowner friendly.  Thanx for any input..

Permalink Reply by Chris Catalfano on August 20, 2011 at 1:08pm

Right now their offering $3,000 per acre and 15% royalty.  Sounds good to me. We'll see

Permalink Reply by Brian on August 20, 2011 at 4:19pm

Were they offering 15% gross or net?

Permalink Reply by Bill on August 20, 2011 at 10:21am

Good for you, Chris!  I met with Shell also. and it sure looks good for us in Butler County.

 

Bill O

Permalink Reply by Bill on August 20, 2011 at 10:22am

JRA,

THe lease I was shown was a pretty good one for a landowner, they will take a lot of addendums.  My attorney is just making a few tweaks, and we'll see if they take those too.

 

Bill O

Permalink Reply by Chris Catalfano on August 20, 2011 at 1:07pm

any info on those tweaks would be a great help Bill....still kinda new at this.  I did find out that if they put a well site up, they give u $15,000, is this true? I mentioned it to him and he said that it's unlikely that they would put one up on my land considering it's only 32 acres.  Is this something I should look into. Thanks for your help!

 

 

Chris

Permalink Reply by Terry W. on August 20, 2011 at 2:39pm

Let it be know the Exxon/Phillips/XTO is alse leasing in norther butler county.

The leasing agent is local, from Evans City, family man, and has worked a few

years for Phillips.

If any one is interested, I can provide his name and phone number.

I have also talked to Shell, and XTO is looking over my addendum now.

All should be final in a few days.

Then countdown!!

Permalink Reply by Brian on August 20, 2011 at 4:17pm

Thomas,

I would be interested in getting his contact info, if you could please supply it, I would appreciate it.

 

Thank you

Brian

Permalink Reply by Terry W. on August 21, 2011 at 2:40am

The info you equested:

Scott Kummer

office 724-772-3500

cell 724-553-4004

We had a campfire get together Friday night, and have 12 contiguous

neighbors ready to sign as soon as I get the approved addendum back.

Also three other neighbors who were not able to stop and get warm and

have a cold beer.

This is all very exciting and a great future for all of us and our future

generations.

Permalink Reply by JMS on August 22, 2011 at 12:53pm

Be careful...how many contiguous acres are you offering? 

Check with BCLG for more info..there are better offers out there now with multiple companies courting the area.

Permalink Reply by Outback on August 22, 2011 at 1:13pm

JMS................you are on point!!!!!!

Permalink Reply by tomcats58 on September 9, 2011 at 12:24pm

If you are looking at the Shell lease you will need a lot more than a few tweaks. The up front money being offered is minor compared to the lease language that you will be living with for what could be your grand children's children life time. I have seen 2 different versions and here are just a couple highlights.

There unit size is 1280 ac. and they have no depth restrictions or pugh clauses in the lease. Ask any good oil and gas atty and he will tell you that arguably pugh clauses are the most important language in a lease. 

Basically, they can put you into a 1280ac unit, then drill a shallow well (2-3 miles away) and hold your land as HBP for the next 50 years at a cost of your royalty which will be about $10 a month in that unit. They never have to drill you a deep well. If they say that of course they will, then tell them to put it in writing.

Secondly, you had better read their "Ancillary Rights" clause. This clause alone will allow them to do what ever they want on your land. They have the "Exclusive right to conduct such operations on the leased premises as may be deemed necessary .....including but not limited to.....construction and use of roads, pipelines,tanks , water wells, disposal wells, injection wells, pits, electrical and telephone lines and other facilities necessary,.... then later in the paragraph it continues, ..."the right to erect buildings, tanks, towers, stations or other structures thereon"

So in summary, without ever drilling you a well, they have the exclusive right (them, not you) to almost build a crack plant on your property and you cant stop them, they can grant any 3rd party pipeline ROW's, telephone ROW's, even a cell tower, etc.

That is just a few examples. Like I said, it needs a little bit more than a few tweaks. I hope you have a good atty. Good Luck.

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