Jean Ward well -- small landowner without lease

We own a little more than 5 acres about a half mile northwest of the Jean Ward well on Fairfield School Rd. Our well water was sampled by Chesapeake. Has anyone seen the plot map for the Jean Ward well? I wonder if our property falls within it. We were contacted by DPS Penn with a lease offer ($2,500/acre, 15% royalty). Seems pretty low. A search of records shows handfuls of neighbors have already signed leases directly with Chesapeake (a few together, but most separately.) Several neighbors haven't signed. We haven't been contacted by Chesapeake. A few questions:

1. Can we be force pooled? If our property is within the unit, do we have a choice?

2. Would contacting ALOV do us any good? 

3. Should we try to get together with neighbors (all fairly small parcels) or just contact a lawyer and try to get a deal for ourselves?

4. If our well water is contaminated during drilling, is there any benefit to having a lease or not?

Any info/advice is much appreciated.

   

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Replies to This Discussion

Permalink Reply by Finnbear on March 22, 2012 at 5:38am

You would have to ask the folks at ODNR in Columbus about that. I know they are in the middle of receiving the annual production reports for all producing wells in OH right now. Those reports are due March 31 and I can see where this could create a bottleneck in the posting process. Friend me here on gomarcellus and I'll send you contact info for someone at ODNR who might have a better answer.

Permalink Reply by Finnbear on March 22, 2012 at 9:48am
Lots of things end up in the file for a given well permit. The items like the plat map and drilling records are added as ODNR receives them and posted online shortly after.
Permalink Reply by Utica Shale on March 22, 2012 at 4:02am

The DPN Penn lease is propably a DRILLER biased.

I do not recommend that you sign that lease.

 

You want to sign a LANDOWNER FRIENDLY lease.

If CHPK gives a copy of an "ALOV" lease to sign,

which thosuands of neighbors around you have already signed,

then have it reviewed for modifications.

 

 

 

Permalink Reply by jami d on March 22, 2012 at 5:04am

Yeah, the DPS Penn lease is bad. Obviously not signing that. At this point it looks like we'll be going to a lawyer. If we haven't been directly contacted by CHPK, can a lawyer contact CHPK for us as individuals?

Permalink Reply by Finnbear on March 22, 2012 at 5:39am

A lawyer can initiate contact for you, but I'd wait for CHK to come to you first.

Permalink Reply by dr j on March 22, 2012 at 9:26am

If you were contacted by DPS - then you were contacted by CHK.  They only work for CHK.  The lease you sign with DPS will be a CHK lease, there is no longer a middle man.   THink of them as the leasing arm of CHK.  

Permalink Reply by jami d on March 22, 2012 at 9:45am

That's what I wondered. If we should wait for something. Or go ahead and contact the attorney and get things moving. If they truly need our property, if we wait is there a possibility of a better bonus, etc?

 

Permalink Reply by Finnbear on March 22, 2012 at 11:37am

In this negotiation which position would you rather be in?

Mr Oil and Gas Co, will you please lease my property (and give me good terms)?

-OR-

Mrs Landowner, we need your land to finish building a drilling unit so we can profitably develop our leasehold. We'd like to make you an offer.

Permalink Reply by jami d on March 22, 2012 at 12:36pm

The latter. So just wait, i guess. When DPS contacts us about the crappy $2,500 offer, just tell them it isn't good enough and wait for something better.

 

I cannot wrap my head around the size of these drilling units (i know up to 640 acres) and why CPKE wants all of these properties leased. Will they all be in the drilling unit? It seems like people are signing everywhere. I am wondering how many people will sign and get the bonus but not be in a drilling unit. how possible/likely is that?

 

Say we have an offer now. Get the signing bonus. But they don'tn drill under us, so no royalties. If we wait, and they really don't need us, so they make no offer, we don't get that signing bonus. Trying to figure out why some people are rushing to sign and others aren't doing anything. Maybe nobody knows best option??

Permalink Reply by dr j on March 22, 2012 at 4:24am

Jami, 

I will send you a message, please friend me.     

Permalink Reply by Kris Smith on March 22, 2012 at 9:16am

Jami,  Seems I am in the same boat, different well.  Could you let me know if you figure anything out? 

Permalink Reply by jami d on March 22, 2012 at 10:26am
Thank you for the detailed info. That makes sense.

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