Replies to This Discussion

Permalink Reply by chris on October 31, 2011 at 3:15pm

No...

 

I had not been bullied into any agreement.  I did not object...   You want an additional pipeline, ok.  No problem, pay me.  Did so w/o reluctance.  Let's not forget.  We landowners need to get the gas to market.  It has to through somewhere.  Again, they already have one pipeline.  I am okay w/it.

 

Bob

Permalink Reply by Lynn Wigglesworth on November 2, 2011 at 12:32am

It's good that you weren't bullied. But the concern here is whether they had the right to lay more pipeline through eminent domain or whether the rights were given to the company through a previous lease. It makes a big difference to me. If private companies now have eminent domain rights (which I don't think they do), we are all in trouble.

Permalink Reply by chris on November 2, 2011 at 11:14am

Had been reluctant at first.  Gave us a few days to think about it.  They would get permission and the needed paperwork if they had to.  They kinda wanted to do it the easy way.   Maybe on a more personal level.  Nevertheless, I know they could have got the necessary and required paperwork if they needed.

 

Bob

Permalink Reply by paleface on October 28, 2011 at 9:09am

If your in a drilling unit and the well is not on your property and the gas company needs your property to run a pipe to the well pad they can do it  and its part of a Shell lease.

Permalink Reply by Ann Ticopa on October 28, 2011 at 10:08am

The standard lease ERM (Shell) was using in Aug 2010 allowed pipelines for gas from any source.  However, they did offer an Addendum that limited that to pipelines for gas from the Lessor's unit.

According to what Bob has written subsequent to his original comment, it appears that "his" pipeline is part of an upgrade to the existing Dominion Sabinsville storage system.  (They're installing a second, parallel pipe.)

http://www.dom.com/business/gas-transmission/allegheny-storage-proj...

Permalink Reply by Sally Sheppard Casper on November 2, 2011 at 10:06am

We have about 150 acres in Middlebury Center, Niles Valley. We were signed with East but our lease expired in May 2011..they never contacted us to renew. Our property butts right up to DER007 which is leased by Seneca. We contacted East and they seemed indifferent but they offered us 2500 an acre 15 and no surface well... which is important to us. Our land runs parallel to the TGP who has a right of way through our property. Seneca wants to give us 2500 and 15. Seneca called and we told them that Shell  is interested in leasing us and now Seneca said that they will get back to us after they talk to the big wigs.  So now we wait, should hear within the next few days. We are surrounded by Shell on one side and Seneca on the other. We will take any lease offer to a lawyer. We don't know wheather to take an offer or wait it out.

Permalink Reply by Ann Ticopa on November 2, 2011 at 11:02am

What would you be waiting for?   Unless they made a major error, I'm guessing that SWEPI isn't drilling close to you.  (Otherwise they would have hbped your 150 acres.)   What about Seneca?

Permalink Reply by Sally Sheppard Casper on November 2, 2011 at 12:12pm

Well, we would like to see if Seneca can offer us a no surface clause to go along with their offer.

Permalink Reply by Ann Ticopa on November 2, 2011 at 2:31pm

OK, I would wait to see what Seneca decides. 

 

Permalink Reply by chris on November 12, 2011 at 3:41pm

what is a ":no surface clause"

 

Bob V

Permalink Reply by Lynn Wigglesworth on November 13, 2011 at 12:03pm

Different leases have different 'non-surface' clauses. In my case, it states that there is no surface disturbance, period...no roads, no wells, no pipeline, or anything else without specific permission from me.  They needed separate written permission to do the siesmic survey because it involved surface disturbance.

Permalink Reply by chris on November 14, 2011 at 8:52am

When negotiating a lease, one is offered ?

 

1. upfront monies -- known as what -- lease price per leased acre?

2.  bonus monies -- for example: 5 yr lease may earn up to $5000 per acre

3.  royalties.

 

In other words all three are negotiated.  If one wants terms extended after five years then usually... you get same, or additional bonus, and upfront monies as well as royalties (same or different.)

 

Can one sign w/abc company for five years and after that five years has expired, enter into negotiations w/different O/G company as if prior lease never existed?

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