Replies to This Discussion

Permalink Reply by Larry on May 3, 2012 at 3:42am

Thanks for info,but they are correct then it becomes a battle of lawyers. But remember haleburton is moving in and that?your

Permalink Reply by Cheryl on May 3, 2012 at 3:19pm

What's the scoop on Haliburton?

Permalink Reply by Mike h on May 3, 2012 at 4:03am

 

I would consider the "forced pooling" threat somewhat overblown. When DNR presented at Carroll Concerned Citizens, their position was that they would do everything possible to get the parties involved to come to an agreement before forcing pooling. There is also a limit on the number of times an organization can do this annually (I forget the limit). So no, CHK is not going to come sweeping through force pooling everyone and anyone they want to willy nilly in Carroll. Check with ODNR yourself.

Document your discussions (date/time/who you spoke with/etc) so that if it ever comes down to forced pooling your position can be that you were looking for the same terms they had been offering previously and that they shouldn't be allowed to force pool you. I'm guessing that your biggest risk at this point is getting locked out. Larry is correct that it becomes a battle of lawyers.

Pretty much, if you see a landsmans lips moving you know they are lying. They are NOT looking out for your interests and should be treated as someone sitting on the opposite side of the negotiating table.

You might want to reach out to Rex Energy and see if they have any interest. If nothing else they might want to use your property to trade with CHK or work some kind of deal. They have ~15,000 acres leased in Carroll. Just a thought.

 

Permalink Reply by Cheryl on May 3, 2012 at 3:22pm

Good info Mike.  I do make it a habit to document the discussions I've had with the landmen - not only does it give a record for legal purposes, but it keeps me straight on who I talked to about what!  One question for you...what do you mean when you say that our biggest risk is being "locked out"?

Permalink Reply by Billy Park Whyde on May 3, 2012 at 4:19am

OK lets try to get a grip on this one! We might need to get hot on this with legislators depending on the answer received. I sent this to the Chief ODNR O&G today.

Hello Mr Erdos

  I would like clarification upon the issue of forced pooling. I have looked at the issue with the information supplied at the ODNR O&G website. However it is very loose in the terms of what would be considered a offer by a O&G company that would be acceptable by your office in approving of forced pooling of a individuals property. I took this from the Go Marcellus Shale web site: http://gomarcellusshale.com/group/carrollcountyohio/forum/topics/in...

In part:

Just received an interesting phone call from a landman that's working for Kenyon/Chesapeake.  We have 92 acres - 78 is leased and the remainder was on an old lease that expired in February and is now "unleased".  We have taken a "let's wait and see" approach with this 14 acre parcel and have been contacted by a couple of different landmen about leasing over the last few months. 

The most recent offer was a couple of weeks ago at $5800/acre with a gross 20% royalty and acceptance of the SURE or ALOV lease by Kenyon/Chesapeake.  Our caller today told us that Chesapeake has told them (the landmen) that they can no longer make that offer.  They can only ask for $5000/acre with a NET royalty and may only use the original "base" Chesapeake lease, and there's no guarantee they can get that. 

The landman also indicated that we should read up on "forced pooling", because now that Chesapeake has over 95% of the land in Carroll County under lease, they will begin forcing the unleased owners to be pooled into their units at their terms and 1/8 royalty.  He indicated that the "competition" has left town and Chesapeake no longer has any incentive to increase the prospective lease terms. 

Is anyone else hearing this same info?  Personally, I think its a scare tactic to get people to sign...especially since we heard very similar comments from a landman "long ago" when they were trying to get us to sign our 78 acre parcel for $600 an acre (which we didn't do, by the way).  Just thought I'd pass the info along though and see if anyone else cares to comment.

  I would hope that the ODNR would consider the Constitution in regards to the taking of personal property in regards to this issue. 

 

My question is would the ODNR consider the outdated old standard of minimal lease value and only 1/8th royalty or would the ODNR require the requester of a forced pooling request to at least make the current landowner friendly lease terms, lease bonus and royalty being offered in the state as the basis? 

 Thank You

Billy P. Whyde

Permalink Reply by Finnbear on May 3, 2012 at 4:46pm

Let us know what you hear back (if anything).

Permalink Reply by Billy Park Whyde on May 4, 2012 at 1:32pm

Sure will!!!!

Permalink Reply by Mike h on May 3, 2012 at 4:37am

Cheryl,

You might want to go to the Carroll Concerned Citizens meeting this evening and speak with Representative Okey about this (and comment to the group as well). http://carrollconcernedcitizens.org/

May 3 at 7pm - Ohio Representative Mark D. Okey - Truth in Leasing Act and Deep Well Drilling Audits.  Representative Okey will share information about why  this legislation and audit capability is needed and the components.  There will be time for questions about other Ohio Legislative activities associated with the shale gas boom. 

Meetings are generally held at the Church of Christ Christian Disciples at 353 Moody Ave. Carrollton just south of Route 43/39 intersection.  The Church of Christ drive goes back behind the Church of God located right on Moody.  Meetings are free and open to the public regardless of what county you live in.

 

Permalink Reply by Cheryl on May 3, 2012 at 3:27pm

Thanks for the invite - sorry I wasn't able to attend tonight.  We'll keep our ears open for the next scheduled meeting, since we've been wanting to come to one of these. 

Permalink Reply by Swift on May 5, 2012 at 8:42am

Thanks for the invite Mike, It was a very interesting meeting.

Permalink Reply by KLB on May 5, 2012 at 7:58am

Cheryl, we received the same phone call yesterday from our Kenyon/Chesapeake landman.  We had a 5800/ 20 % "market enhancement" royalty lease offer that had been around for about a month.  We were told that those terms were gone.  Our landman said that he could get $5000 with net royalties and their standard lease form until Tuesday.  Then, it's dropping again. 

When we asked him a while back about forced pooling, he said that if they force pooled, you would get the average of what the others in your unit got for royalties.  Not sure if that's true at all, though.

Permalink Reply by bessieblues on May 5, 2012 at 8:43am

Turn the landman and the company he represents in to governor Kasich's office. All the energy companies were warned not to use the threat of forced pooling at the beginning of the oil and gas boom.

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