Sportsman's Club Threatend With $100,000 A Day Fine

http://www.wtrf.com/story/16041440/sportsmans-club-threatend-with-1...

 

The ongoing dispute between the Jewett Sportsman's club and Chesapeake Energy continues. The issue is whether Chesapeake Energy have the surface rights to be on property. The Sportmans' Club's legal representation tell WTRF.com "We are certain that Chesapeake, its employees, agents, and workers do not have the right to enter the Jewett Sportsmen and Farmers Club, Inc.'s property to explore and extract coal, oil & gas, or other minerals."

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Replies to This Discussion

Permalink Reply by Philip Brutz on November 15, 2011 at 6:28am
Permalink Reply by Shower Bath on November 15, 2011 at 6:43am

Why is Chesapeake so intent on placing the well pad on the Sportsman's Club property? Couldn't they put the pad on an adjoining parcel and just drill under their property? This is looking like a public relations nightmare for Chesapeake if they don't change their approach. I thought they always put a spin out there that they were responsible and good neighbors. I don't think it's smart to get into a big confrontation with a local non-profit organization. And I'm sure there are a large number of landowners that would welcome that well with open arms. Just saying.........

Randy

Permalink Reply by Dan on November 15, 2011 at 6:58am

I agree Randy.  I just don't get it.  It's only their second well in Harrison County, so it seems like they should still be bending over backwards to establish good PR at this point, and then later after a couple dozen wells they can flex their muscles and drill on the unwilling surface owners.  I'm not saying Chesapeake doesn't have the legal right to be there and extract those minerals, but as you say it doesn't seem smart to be getting into that confrontation now.  Especially since family members at the Club work for local news media.

Maybe Chesapeake sees this as a precedant-setting situation, and they just don't think they can afford to bend on this one.   Or maybe they think that the longer they wait, the more media firepower is going to be launched against them, so they should just get in for a few months, and get out, and everything will simmer down.

It really can be a scary time for those surface owners who don't own their minerals.   They don't have much of a negotiating position at all.

Permalink Reply by AT on November 17, 2011 at 9:00am

The Sportsman Club only own their surface rights and they didn't sign any lease with anyone. That is the problem. The "Farmer Johns" out there who don't own their gas & oil rights may be subject to the same situation in the future. Thoses "Farmer Johns" may wake up one morning and have "KEEP OUT" and "NO TRESPASSING" signs plastered all over their farm by an O & G Co. when "Farmer John" never signed any lease with anyone. I'm guessing some "Farmer Johns" would be more apt to breaking out their shotguns to handle this situation.

Permalink Reply by Dan on November 17, 2011 at 9:16am

"...breaking out their shotguns to handle this situation" ... says the guy with the Jed Clampett profile picture! ;-)

Permalink Reply by Finnbear on November 17, 2011 at 9:45am
That is part of the risk you take when you buy property that is not "whole" with minerals and/or oil & gas rights included. Property like that (without all the rights) is generally cheap for a reason.
Permalink Reply by AT on November 17, 2011 at 9:49am

Finnbear, I believe the property was purchased by the Sportsman Club in the late 1950's or early 1960's. With what is happening today, you will no longer be able to touch a piece of land that is "whole". Those days are now over in eastern Ohio, unless of course, you have very deep pockets.

Permalink Reply by Finnbear on November 17, 2011 at 10:03am
So, who sold or reserved away the oil and gas rights on this ground and when?
Permalink Reply by AT on November 17, 2011 at 10:10am

Finnbear, I don't know the particulars, however, it is old strip mined land. I'm guessing one of the coal companies made the reservations when or before the Sportsman Club purchased the land in the late 1950's or early 1960's. North American Coal Royalty is the current owner of the oil & gas rights - the same oil & gas rights owner at the Buell Well about a mile west. Most who have purchased old strip mine land, don't have the minerals or oil and gas rights as the coal companies reserved them in most cases. This will become a big issue in the future, not only in Harrison Co., but surrounding counties also where coal and strip mining once was King.

Permalink Reply by Finnbear on November 17, 2011 at 1:17pm

They had to know when they bought it that someone else held an interest in it - correct?

Permalink Reply by AT on November 17, 2011 at 3:22pm

Finnbear,  I'm sure they did know. I'm also sure they did not ever dream that the mineral rights owner could get away legally with negotiating lease terms on the Club's surface rights 50 years later and subsequently sign a lease that governs and gives control of the Club's surface rights to a 3rd party. This leaves the Club at the mercy of whatever protections the mineral rights owner negotiated for them. Or didn't.

Permalink Reply by Finnbear on November 17, 2011 at 4:44pm

Their deed should indicate that there was a severed mineral interest. When minerals, coal, or gas/oil are reserved away from the surface ownership they have to be indicated on the deed in some way.

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