Shell is backing out of leases in eastern Lawrence County

A guy my brother works with stopped over last night and told us after contacting Shell and inquiring where his money was, they tolf him they were cancelling his lease. He lives in Plain grove Twp., right off of 79.  They actually eluded to him they were low on money. What a joke. I still think there should be a law against this. If the landowner is bound the second he/she signs a lease, so should the gas company signing them.

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Permalink Reply by Schnoozie on May 31, 2012 at 2:48am

If you signed a lease and she did not know about it, sounds like you might be in spot of trouble. The Hens are funny about that kind of thing.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on May 31, 2012 at 9:59am

Amen Drew!

There seems to be an undercurrent of Shell Bashing on this site. Some flagrant and some very subtle. Motivated by what.......hmmmmmm.......I wonder.......? We can draw our own conclusions I think.

Enjoy your Shell money , I know I have!

I agree with you wholeheartedly about their prompt response to questions. I had the same positive experience with them as well and have absolutely no regrets for signing with them!

DRILL BABY DRILL!!!!

Permalink Reply by LGB131 on May 31, 2012 at 1:46am

For everybody in NWPA, if your land falls within the Dry Gas window, don't expect to get paid. It simply isn't going to happen. The companies out there are doing everything they can to avoid drilling even one single dry gas well. If you're wondering where the windows fall, check out Range Resources' company presentation I've uploaded here. On page 23, they have a great map. As far as the Utica is concerned, Lawrence, Butler, the Southeastern part of Venango, Beaver, Clarion are all thought to be dry gas. Page 16 outlines their southwest Marcellus position. Anything above the 1,050 BTU line is considered "wet" and anything above the 1350btu line is considered "super-rich," which is the home run Marcellus area. If you live in the wet or super-rich counties on page 16, you've got Marcellus leasing potential, although most of that's probably finished up. On page 23, if you live in the wet window, you've still got a chance. I know Hilcorp and Halcon are actively leasing for Utica in NWPA. I know Hilcorp is working Mercer County hard for around $3,000/acre. But if you're in the dry gas window, forget about it. Companies are up to their ears in dry gas these days.

PS- if you're upset about the O&G companies walking away after you sign your lease, make sure your lease guarantees that you get paid pending clear title. The lease that the companies' field brokers give you probably won't have that in it. Join a group and get some good representation.

Permalink Reply by Jason on May 31, 2012 at 2:22am
LGB - where's the upload? Thanks.
Permalink Reply by cheliped on May 31, 2012 at 7:13am

If the SUper Rich area is good and dry gas is not good right now, then why did Rexx drill into the utica at the Cheesemans and pass up the super rich areas?

Permalink Reply by LGB131 on May 31, 2012 at 2:32am

For everybody in NWPA, if your land falls within the Dry Gas window, don't expect to get paid. It simply isn't going to happen. The companies out there are doing everything they can to avoid drilling even one single dry gas well. If you're wondering where the windows fall, check out Range Resources' company presentation (can be found in the Investor Relations section of their website) On page 23, they have a great map. As far as the Utica is concerned, Lawrence, Butler, the Southeastern part of Venango, Beaver, Clarion are all thought to be dry gas. Page 16 outlines their southwest Marcellus position. Anything above the 1,050 BTU line is considered "wet" and anything above the 1350btu line is considered "super-rich," which is the home run Marcellus area. If you live in the wet or super-rich counties on page 16, you've got Marcellus leasing potential, although most of that's probably finished up. On page 23, if you live in the wet window, you've still got a chance. I know Hilcorp and Halcon are actively leasing for Utica in NWPA. I know Hilcorp is working Mercer County hard for around $3,000/acre. But if you're in the dry gas window, forget about it. Companies are up to their ears in dry gas these days.

PS- if you're upset about the O&G companies walking away after you sign your lease, make sure your lease guarantees that you get paid pending clear title. The lease that the companies' field brokers give you probably won't have that in it. Join a group and get some good representation.

Permalink Reply by Drew on May 31, 2012 at 7:18am
Do you work for Shell?  If not you really can't speak on their behalf. I've heard it all on here.  Shell is huge.  I really don't think they are just going to quit leading.  I have been in the office.  People are still signing and Shell is still paying.  If someone did not get paid I'm sure their is a reason other than they don't have money or what not. Even if they don't drill this year or next.  It is like mine in the bank.  I'm sure the gas is not going anywhere.  
Permalink Reply by Landowner Guernsey County on May 31, 2012 at 10:14am

Can I ask when you say you call and talk to Shell people or go in a office what you are referring to? When Shell signed here in Guernsey County they should have paid us a little over 2 months ago and some have gotten paid but alot have not. I know title work is no easy task and can take a good while especially since our recorders office is not online but the only people we have to talk to is Holland Land Service. The people at Holland either don't return calls or will tell us lie upon lie and none of the numbers we have tried have gotten us anywhere. If someone would be able to give me some info I would appreciate it I have no problem waiting for my money would just like to know what is going on heck maybe Shell don't even know how Holland is treating us

Permalink Reply by Drew on May 31, 2012 at 4:00pm
I was at the Shell office in New Castle, Pa on Tuesday of this week. They are located on Butler avenue.  The place is always busy. They have a largel Lawrence county map on the wall.  All of the property is outlined on the map.  As they get leases signed they color them in blue. The map is turning blue quickly.  They have been leasing here for many years.  Stop in and talk to them.  They are more than willing to explain what they are doing. I go there to see what people around me are doing.  Most are signing. Some can't due to shallow well problems.  Stop in they will talk to you.  

Long consulting is the land group I worked with. 

As for Ohio I do not know.  But all I can say is get your own information. It is there for the taking.  Research., ask questions, ask lots of questions.  If you don't get answers call everyday.  

I have had no problems. My 90 banking days are approaching fast.  I have been positive throughout. 

GOOD LUCK TO ALL OF YOU. !!! 
Permalink Reply by kris miller on June 1, 2012 at 11:18pm

chesapeake is doing this in my area a week after the check was supposed to be here i got told chesapeake pulled out no money . I cant back out of their lease once we sign its not right they can. Where gonna be the modern day southern wv theyll rape us and the land then leave us with nothing but problems

Permalink Reply by Billy Park Whyde on June 2, 2012 at 1:48am

Kriss how do you figure. If they do not pay for the lease they sure can't drill.

Permalink Reply by Billy Park Whyde on June 2, 2012 at 1:52am

  It might be a blessing in disguise as well. For those that signed a lease with less than desired conditions it gives them another crack at leasing. We all know that there is a need for O&G, the question is when will the demand bring the money up to drill for it. 

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