Replies to This Discussion

Permalink Reply by Mark Leeds on November 25, 2011 at 6:41pm

Before you post something you should see it for yourself. Feel free to give me a call (412) 377-0412 i wii be more than happy to give you your own copy. (5. Nothing stating No Pits, No Compressor or Processing, No Hazardous Materials, No Disposal or Injection Wells.) These are all covered in our addendum sheets

No Gas Storage. Lessor
excludes from this lease all rights for storage of gas and or waste water
without additional written consent of Lessor.

Facilities. Lessee is
not  granted any right to construct any
gas treatment or processing facility on the Leased Premises, including but not
limited to separators, dehydrators, and compressors, without Lessors written
consent and/or further negotiations.

Surface Use and
Damages.

Maintenance and
repair of roadways and facilities used by Lessee shall be the responsibility of
Lessee. Lessor reserves the right to repair and maintain the roads if Lessee
fails to initiate repair or maintenance of roads damaged by Lessee within
thirty (30) days after receiving written notice from Lessor. Lessee agrees to
reimburse Lessor for the cost of any maintenance or repair undertaken by Lessor
to repair roads damaged by Lessee.

 

No well shall be drilled within five hundred (500) feet of occupied dwellings or within three hundred (300) feet of other buildings unless both parties consent in writing thereto. The  final location of well pads, access roads, pipelines, canals, ditches, ponds, levees, dams, fences, telephone and power lines, compressors, dehydration facilities, pits, and waterlines shall be approved by the Lessor in writing before drilling is started, equipment is set and operations begun, provided however, said approval shall not be unreasonably withheld or delayed.

 

To the degree
practicable, operations shall be designed and laid out to be concentrated in a

single area so as to avoid unnecessary utilization of surface areas. To the

degree practicable, pipelines and roadways are to be within the same corridor.

Lessee shall make every effort to use existing logging and township roads.

Provided that Lessor
is the current surface owner of the leased premises at the time of Lessee’s

surface operations, Lessee agrees to pay Lessor at a reasonable rate for all

surface damages caused by Lessee’s operations to growing crops, trees, and timber.

Lessee shall notify

Lessor in writing at least thirty (30) calendar days prior to any removal by

Lessee of marketable timber. At Lessor’s option, Lessor may choose to harvest

timber or Lessor may require Lessee to cut and stack the timber on a mutually

agreeable location on the leased premises.

Upon Lessor’s written
request, Lessee shall at its sole cost, expense, and design install fencing for

the protection of livestock around any well site(s), tank battery(ies) or

facility(ies) installed on the leased premises by Lessee provided that Lessor

is the current surface owner of the affected lands at the time of Lessee’s

surface operations.

Upon the written
request of Lessor, Lessee shall install at its sole cost and expense a gate at

the entrance of any road constructed by Lessee on the leased premises provided

that Lessor is the current surface owner of the affected lands at the time of

Lessee’s surface operations.

These are all directly from our lease! As you can see we require final written permission for location of anything we place on leased premises!

 

........FYI It was taken to multiple attorneys and to date the total acreage we have signed in York is over 11,000 acres and growing daily.

Permalink Reply by Mark Leeds on November 25, 2011 at 7:01pm

Sorry typo.............................1,100 acres...........

Permalink Reply by Mark Leeds on November 26, 2011 at 1:54am

Again this comes directly from the addendum sheet!!!!!!!

Special
Warranty Title.

It is
understood that Lessor warrants title to the interests subject to the Lease
only insofar as warranting that the title thereto is good and marketable to the
best of Lessor’s knowledge and Lessee agrees that no claim will be made against
Lessor pertaining to warranty of title.

This should cover your original concerns about warranty title........Let me state again, before you post things you should get a copy and READ it all the way through before you try and belittle it and the people who have signed it in a public forum!

Permalink Reply by psychosid on November 26, 2011 at 5:21am

1. THERE SHOULD BE NO WARRANTY OF TITLE WHATSOEVER!  If there is an issue with the oil/gas rights or title, the lessor is responsible for all costs and expenses in curing the title defect.  LA, ALOV, and Des have negotiated this. 

 

2. FYI, there is A LOT more liquids besides GAS and/or WASTEWATER that could be pumped into a Disposal Well!  You've been around and should know this.  Your lease needs to have NO DISPOSAL OR INJECTION WELLS, NO PITS, NO HAZARDOUS MATERIALS, NO GAS STORAGE OR WELLS, and a section for OIL AND GAS ONLY.  These are all different issues and emcompass much more than GAS and/or WASTEWATER. 

 

3. The lessor is selling EVERYTHING below the surface in your lease!  A shallow well ties up the Lessor's property for Life.

 

4. Why no mention of INSURANCE?  What do you think will happen if a death occurs on the Lessor's property, either from a well exploding or a trench collapsing when installing a pipeline?  Limits of Liability should be clearly defined.

 

5. Water Testing should be done by an independant laboratory CHOSEN BY THE LESSOR, not by the Lessee and provided to the Lessor.  Do you see where this would present a problem?

 

6. Why do YOUR Lawyers have a problem with "GROSS PROCEEDS" written into the ROYALTIES Section?  Gross Proceeds needs to be defined clearly and include TOTAL CONSIDERATION PAID.   Your MARKET ENHANCEMENT CLAUSE needs to be a sub-section of the ROYALTIES.  Not allowing "GROSS PROCEEDS" in the lease says ONE THING TO THE LESSOR......IT'S NOT A TRUE GROSS ROYALTY.

 

7. Pipelines should have a cover of at least 36".....not 32".

 

8. Anything about Hunting and Fishing on someones property that will have a well pad?  Not sure how much this would occur, but something should be written into the lease. 

 

9. PUGH CLAUSE should address Vertical Wells and Horizontal Wells differently.

 

10. The Spud Fee of $20k for a pad including 7 acres is a JOKE!  LA got $12.5k/acre.  ALOV and Des also have negotiated much more for the pad. 

 

11. Shut-In payment of $20/acre/year?  I've read other EXECUTED leases that have $50/acre/year. 

 

12. 200k cubic feet of FREE GAS?  Everyone knows that the pressures are way too high to send gas to a house located near the wells.  Every other lease I've read included 350k cubic feet of gas or Payment In Lieu of Free Gas.  Why not 350k cubic feet of free gas or equivalent cash payment?

 

13. . What constitutes Executing the lease?  Spudding of a well and production needs defined as the ONLY grounds that execute the lease.  The first paragraph states that if XTO plugs or cleans out an abandoned well, such shall be then considered to have been drilled under the terms of this lease.   REALLY? 

 

Your lease is not very well organized.  When this occurs, it opens the door for "interpretation" by the courts.  Who are your Lawyers that reviewed this lease and are they licensed to operate in Ohio?  Do you know what the Ohio Revised Code is?  What Lawyer would recommend any Warranty of Title in a Lease?  Why are you the only person to reply to this thread?  Do you have any references?  I look forward to your reply and answers to the differences in your great lease and some of the others that have been executed.

Permalink Reply by psychosid on November 26, 2011 at 8:43am

send me a private message and i'll give you my email.  i'd like to review the new and improved lease and addendums and see what you can do. 

Permalink Reply by Mark Leeds on November 26, 2011 at 11:35am

FYI..........LA groups deal is with Brencoe oil co. and based in Scottsdale Az. and when i googled and bing'ed them i could find nothing on them.......I've heard of small companies before, but to not even have a website is kinda scary!!!!!!!!!!

Permalink Reply by Mark Leeds on November 26, 2011 at 11:39am

Just looked them up in the Yellow pages and found nothing........maybe someone out there can find something out on them!!!!!!!!! Please let me know!!!!!!!!!!!!!!

Permalink Reply by Mark Leeds on November 27, 2011 at 4:00am

I agree totally!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Permalink Reply by adam sorell on November 30, 2011 at 11:02am

Well psychosid. How does that addendum look?? Also what is the bonus per acre Mr.Leeds is offering??? I only have 10 acres. I don't think i have to worry about the other stuff because no well will be on my property.

Permalink Reply by adam sorell on December 6, 2011 at 6:27pm

Philips. that what it said at end of contract but i don't know if he busy or what because he doesn't return emails anymore.

Permalink Reply by BrianH on December 7, 2011 at 3:36pm

I got a follow-up call from XTO today, they informed me that Mark is no longer an employee of Phillips/XTO

Permalink Reply by Bob on December 9, 2011 at 9:55am

Hey Brian, thanks for that update.  I wondered why he hasnt returned my calls.  Did they say if there was anybody else in the area..The agent covering Monroe county doesnt return calls either.

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