Replies to This Discussion

Permalink Reply by 09bp5t05myjl3 on December 31, 2011 at 10:56am

Paul you talk about 1,000's of acres HBP, though you might be interested in this, was posted in Monroe county section.

Beck oils sells Deep rights to Exxon on all his leases in Monroe county those with & Without wells.

Not sure how this impacts everyone on here but thought I would share. It has come to my attention that Beck Energy just completed a deal with Exxon/XTO effective 12/20/2011 and filed with the Monroe county recorders office on 12/21/11 transferring somewhere between 7,000 & 12,000 acres from Beck Energy to Exxon/XTO,It appears that Beck Energy has sold its deep rights (Utica Shale) on all the leases they hold in Monroe county to Exxon/XTO. Beck Energy received an undisclosed up front fee & an override on the Royalty of 6.25% that he keeps. What is everyone's feeling on that?

Pardon Any Typos or Errors: Below is the Assignment Language From the Filing:

Beck Energy Corporation, an Ohio corporation, with a mailing address of 4857 Harding Avenue, Ravenna, Ohio 44266 ("Assignor"), for Ten Dollars and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), does hereby GRANT, BARGAIN, SELL, CONVEY, ASSIGN, TRANSFER, SET OVER, and DELIVER Exxon Mobil Corporation, a New Jersey corporation, c/o its affiliate, XTO Energy Inc., whose address is 810 Houston Street, Fort Worth, Texas, 76102, ("Assignee"), all of Assignor's undivided interests (as set forth in Exhibit A) in and to the following described properties, rights and interests:

A. The oil and gas leases more fully described in Exhibit A, less and except the shallow rights which are more particularly described below (the"Leases"), subject to the operating agreements, pooling and unitization agreements, declarations of pooling or unitization, pooling orders, farmout and farmin agreements, participation agreements, assignments, oil sales contracts, gas sales, gas processing, gas gathering, and transportation agreements, rights-of-way, easements, permits, licenses, and other instruments and agreements pertaining thereto of record as of the Effective Time or disclosed to Assignee prior to Closing (the "Existing Contracts").

B. Unitization and pooling agreements and rights under pooling orders applicable to the Leases and all rights under the Existing Contracts.

C. Without limiting the foregoing, all other right, title and interest of Assignor of whatever kind or character, whether legal or equitable, vested or contingent, in and to the oil, gas and other minerals in and under or that may be produced from or attributable to the lands covered by the Leases, including oil and gas leases, overriding royalties, production payments, fee mineral interests, fee royalty interests and other interests in such lands whether such lands are specifically described in Exhibit A, and even though Assignor's interest in such oil, gas or other minerals may be incorrectly described in or omitted from Exhibit A.

D. Copies of all files, records and data relating to the items described in subsections A through C above including title records (including abstracts of title, title opinions.title reports and title curative documents), contracts, correspondence, and all related matters in the possession of Assignor.

The properties, rights and interests identified in subsections A through D above are collectively called the "Assets."

Notwithstanding anything contained in this Assignment and Bill of Sale to the contrary, the Assets do not include, and there is EXCEPTED if owned by third parties and RESERVED unto Assignor if owned by Assignor, and Assignor does not grant, bargain, sell, convey, assign, transfer, set over or deliver to Assignee hereby: (i) all rights, assets, properties, and business of Assignor, including subsurface formations and rights, related to all depths above the stratigraphic equivalent of the top of the Burkett Formation, which occurs at a true vertical depth of 3,860 feet in well number 34121240720000, Seneca Township, Noble County, Ohio, together with any rights, liabilities, or obligations associated therewith, provided, however, Assignee shall have the right to drill through suchdepths to operate and produce the depths hereby acquired; and (ii) the wellbores of the wells, with the right to continue to produce the depths currently drilled by such wells, listed on Exhibit B; and (iii) an overriding royalty interest in the Leases, on a Lease-by-Lease basis, equal to the positive difference, if any, between 18.75% and existing lease burdens, which shall be proportionately reduced to the extent the applicable Lease covers less than 100 percent of the minerals in the lands covered by the Lease or if the Lease covers less than 100 percent of the working interest in such Lease. Assignee may pool the Overriding Royalty Interest without obtaining the additional consent of Assignor.

TO HAVE AND TO HOLD the Assets unto Assignee, its successors and assigns, forever. Assignor hereby agrees to warrant and defend the title to the Assets hereby assigned unto Assignee against the claims of any party arising by, through, or under Assignor, but not otherwise. Additionally, to the extent transferable, Assignor hereby assigns to Assignee, its successors and assigns, full power and right of substitution and subrogation in and to all covenants and warranties (including warranties of title) by owners in Assignor's chain of title, vendors, or others, given or made with respect to the Assets or any part thereof prior to the Effective Time. This Assignment and Bill of Sale shall be binding upon and inure to the benefit of the Assignor and Assignee, and their respective successors and assigns.

EXCEPT WITH REGARD TO THE SPECIAL WARRANTY OF TITLE FROM ASSIGNOR TO ASIGNEE SET FORTH ABOVE, THIS ASSIGNMENT AND BILL OF SALE IS MADE WITHOUT WARRANTIES OR COVENANTS, EXPRESSED OR IMPLIED IN FACT OR IN LAW, AS TO TITLE, MERCHANTABILITY, DURABILITY, USE, OPERATION, FITNESS FOR ANY PARTICULAR PURPOSE, CONDITION, SAFETY OF THE PROPERTY, COMPLIANCE WITH REGULATORY AND ENVIRONMENTAL REQUIREMENTS OR OTHERWISE. ASSIGNOR DOES NOT IN ANY WAY REPRESENT OR WARRANT THE ACCURACY OR COMPLETENESS OF ANY INFORMATION, DATA OR OTHER MATERIALS (WRITTEN OR ORAL) FURNISHED TO ASSIGNEE BY OR ON BEHALF OF ASSIGNOR. ASSIGNEE HEREBYAGREES THAT IT HAS INSPECTED OR HAS BEEN GIVEN THE OPPORTUNITY TO INSPECT THE ASSETS, INCLUDING THE LEASES AND ASSOCIATED AGREEMENTS, WELLS, PERSONAL PROPERTY, AND EQUIPMENT ASSIGNED AND CONVEYED HEREIN AND THAT IT ACCEPTS THE SAME "AS IS, WHERE IS" AND "WITH ALL FAULTS". '

This Assignment shall be effective as of December 20, 2011, at 7:00 a.m. local time where the Assets are located '(the "Effective Time") and shall be subject to that certain Purchase and Sale Agreement-dated November 9, 2011 by and between Assignor and XTO Energy Inc., an affiliate of Exxon Mobil Corporation.

Assignor and. Assignee agree to execute and deliverto each other, from time to time, such other and additional instruments, notices, division orders, transfer orders and other documents, and to do .all-suchother and further acts and things as may be necessary to effectively grant, convey and assign to Assignee the Assets.

IN WITNESS ,WHEREOF this Assignment and Bill of Sale has been executed on December 20, 2011, but effective for all purposes as of the Effective Time.

Permalink Reply by Paul Martinelli on January 1, 2012 at 6:04am

Tom,

Good info....

I suspect we will see the same  for Tusc.  County......as local O/G companys here have made deals to sell the deep rights from their leases.

These old leases need addendums to allow for the deeper drilling and larger units. I have been told that the local O/G companies are working with the new "assingee" companies to come up with somewhat of a standard addendum for the landowner's to sign.  I sure hope so, it seems fair and only right to include the landowner as part of this 3 way partnership. What gains the landowner and current lease holder's may get, I can't say. I for one won't allow it to be a one sided deal where landowner gets nothing.

Time will tell, as this is suppose to take several months to get ironed out.....and as long as the acreage is already HBP,  well i guess they are in no hurry.

Looking forward to 2012.

Permalink Reply by 09bp5t05myjl3 on January 1, 2012 at 6:48am

Paul, I definatly agree the landowner should be invoved & get something out of it, I hear that several landowners upset spoke to the owner of Beck Oil told them that they should be happy he Leased to a real driller so they will get their Royalty, It appears at least his Lease allows for Pooling to 640 acres & he owns all the way from surface to center of the earth. Not sure what the other shallow drillers lease looks like.

This was part of a post By Bill in Monroe county Discussion (Exxon Acquires Beck Deep Rights)

 

 

"The standard Beck Energy lease appears to state":

 

"to consolidate the leased premised or any part thereof or strata therein with other lands to form an oil and gas development unit of not more than 640 acres, or such larger unit as may be required by state law or regulation for the purpose of drilling a well thereon"

Permalink Reply by Paul Martinelli on January 1, 2012 at 12:03pm

That sucks.....I know my leases have 160 acre pooling limits.

Permalink Reply by 0i7okn54zwbdo on January 2, 2012 at 5:13pm

No, that's good. If your lease limits your unit size you may be able to get some money in exchange for signing an addendum and expanding your unit size. This huge companies hate dealing with 10 different leases and 10 different terms, unit sizes, etc. they want uniformity and they're willing to pay to make all leases look like the ones that they use.

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