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Permalink Reply by Ed Ganelli on January 16, 2012 at 4:16am

An attorney's rates may frighten you, but it will be money well spent in the long run!  There are SO many things to consider - was your property leased?  Ever developed under that lease?  Ever included in any drilling units (could even be included if the well is not contiguous to your acreage), etc.?  All these are information that you would really need an attorney to look into, and would then most likely need the attorney to get the lease terminated, if possible.  Good luck!

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Permalink Reply by Billy Park Whyde on January 16, 2012 at 4:35am

Looks as if your neighbors bought into the land grabber, real estate investor plan. Here where I am at a land grabber bought about 250 acres, the land was already leased so he bought the royalty rights / mineral rights as was possible. He sold off the timber which paid more to him than he paid for the property. Then divided up the road frontage to establish as little as two acre plots sold them for $5000 each and 5 acre plots for $10,000 each under land contract at 10% interest. Result we have foreclosed homes falling apart,  and a real mess in general. 

  Looks as if you have done a bit of research already if I were you I would go online and hit up your county recorders web site look for the lease then you will know if the original lessor  or lessors was,  the tank you mentioned may be a  might be  a agreement for free gas to that property as most separators were located near the tank battery (some form of a agreement should have been recorded.  

 If your interested in leasing I would suggest you talk with the property owners and kind of educate them as to the potential of possibly rejecting a new lease to fabricate a new unitized lease under perhaps better terms if they are interested then I would say lets ask an attorney . It is far easier to to have a worth while meeting with an attorney if you have a decent understanding of what you are looking for.

   County auditors on line search will give you the land (plots) owners names and tax info, the recorders office the leases or documents. 

  By no means is this a  perfect plan but a start at answering your question you pose here. Good luck.

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Permalink Reply by Jim Litwinowicz on January 16, 2012 at 5:24am

If the lease on your property states that it is restricted to a certain strata like the Berea Sandstone, then you can lease the other strata like the Utica separately. Great news for you.

You need to fully understand all the aspects of leasing, preferably before you talk to an attorney so you can ask the right questions and understand all the answers completely. It even helps in trying to find a good attorney that truly understands oil and gas leasing as not many do so very well. A good attorney is great but you need to understand the issues first.

Talk to your neighbors, even get together in a group. You can all educate each other, come up with questions others wouldn't think of, and even share the cost of an attorney. And knowing what is being offered and by whom is great info.

Read a lot of the older posts on this site. Go to http://www.tlma.org/   Search for other sites on "gas lease terms" or "oil and gas leases"

Good luck

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Permalink Reply by Michele on January 16, 2012 at 8:40am

Thanks for the responses.

I think it will be more cost effective to go to an attorney than a mineral company. When I read the mineral companies contract it didn't sound all that great for the price I might be paying.

 

No the guy wasn't a land grabber he lived on this property for 40ish years. There are actually only 2 deeds on files mine being the 3rd but only for a portion of the land. The 1st deed is so old I have to go through the really old books if I can figure out the approximate date. (this is what the recorders office told me, I haven't tried yet but I am up for it!!)

We receive the free gas and royalties on the tank from the one lease. There is also a second lease with a different company that ends in March. (confusing I know)

To the best of our knowledge the neighbors that have signed, signed with Chesepeake.

Thanks for the tips and info. Keeping my fingers crossed.

Michele

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Permalink Reply by dr j on January 16, 2012 at 8:48am

Michele, 

I am very familiar with leases in Columbiana county- if you would like to contact me - send me your email via a private message and I will see what I can figure out about your property.     Who did the landman represent?  Any lease signed in our county with Range Resources in the past is going to be controlled by Chesapeake at this time. Range resources sold all their shallow well rights in Ohio to Envervest several years ago.  Chesapeake and Envervest are now "partners" on these deep right issues for all intents and purposes.   If you know who owned the original 65 acres we can probably figure out who is holding your lease for sure......  and why they are knocking on your door right now.   I can also give you an idea what the current climate is and who can help you from there.    

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Permalink Reply by Michele on January 16, 2012 at 9:56am

Great Lakes owned the lease for the 65 acres. I was then told the RR bought them.

I did contact RR and they told me that is a top lease and was free to sign another lease. Nothing in writing on this so can't say how true it is.

The individual we bought the house and 8.5 acres from owned the 65 acres originally. The parcel on the lease is the same as our home owners taxparcel # ,making me think that the mineralOG rights belong to us. BUT I know research research research. LOL

I think I sent you my email by inviting you to be my friend don't know exactly how this works

Hope to hear from you, Thanks

Michele

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