How can a landowner be sure their lease stays with a USA domestic oil and gas company ?
What can landowners do to make sure their lease stays with a US domestic oil and gas company?
We need to make sure our precious domestic American oil and gas isn't owned and controlled by any foreign country, especially those with evidence of hostility towards America.
Generations of American have been violently manipulated by the international organizations which control the supply of oil. America has fallen to #2 while China has risen to #1 in global economics. Americans are suffering from long term financial stress and many little hope for economic and social recovery. Yet, we find we are sitting on the largest, most valuable oil and gas reserves in the world!
Generations of Americans have had to submit by paying a high price when our government decides to fight wars over foreign oil, government pay-offs to terrorists and warlords in exchange for fewer attacks on foreign supply lines,
Oil prices affect every American at the gas pump, at the grocery store, and for all goods and services we use every day.
Recently, huge reserves of domestic oil and gas have been discovered in America!
According to production reports the oil and gas find in the North Eastern United States is larger than anything we've ever seen, including everything in the Middle East!
According to www.gomarcellusshale.com the 2 largest producing wells in the US are currently reported to be located in Monroe County, Ohio and in Harrison County, Ohio.
The potential economic and social benefits of this discovery is America's only hope for survival as a nation. Domestic oil and gas production controlled by Americans will mean businesses and jobs for Americans, stable income for Americans, increased funding for social programs, and a stronger stable nation. We wouldn't need to participate in wars over foreign oil, we could finally bring our troops home, and have good paying jobs for all Americans.
Domestic oil and gas, if managed properly, gives our nation the opportunity to be self-sustaining and finally cut ties with the foreign entities which so easily manipulate us with foreign oil.
It is very alarming to hear that Chesapeake and others intend to sell out to Communist China.
As China negotiates to buy Chesapeake, our government remains oblivious and uninvolved.
No one has stepped up to make sure these desperate deals made by CEO's will not harm American citizens!
What laws and regulations exist which protect American citizens, American natural resources, (oil, gas, water, uranium, etc) and America's vital infrastructure from being purchased, controlled and manipulated by potentially hostile
foreign entities?
Another concern is that many landowners were told that the lease was for oil and gas, but the actual lease is for ALL minerals from the surface to the center of the earth. This includes Uranium or Throium or other Radioactive components. If the leases are sold to China, they could inherit the rights to radioactive materials, as well.
What legal action can be taken by landowners to change the current contracts or leases to indicate they do not want their property to fall under control of a foreign nation ?
What can the Governor of Ohio do to protect Ohio residents who sold their mineral rights to Chesapeake and others who may act with wreckless disregard for the landowners and the nations best interest?
Will Gov. Kasich create regulations which prevent foreign countries from manipulating our very own oil and gas supplies against Ohio residents?
What provisions should landowners include in future contracts to prevent the sale or transfer of their lease to a communist controlled country such as China or any organization with hostile intent towards America?
Views: 4506
Replies to This Discussion
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Permalink Reply by 0l1a6laz7smpf on
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I am glad that we come to such forums and share...and tell one another in our communities about the lease clauses....for in the case of the lease that I have posted 'minerals' was being included. So as more people started using land groups and utilizing gas/oil attorneys better clauses were and are being done for the average Lessor. So thank God for that...that some did hear when another was trying to inform or even warn of a tactic or catch'all clause that the leasing arm of the oil companies were using.
This again is why I hope that you all here that have so far read about the leases that some of you have done leases that may or may not return to you to be renegotiated for another primary term....need to have better defined 'assign' clauses so you as owner can have some control over the flipping of the leases with you involved....whether monetary or the ability to refuse if you don't want a foreign investor to eventually become the working interest owner as Lessee...it is up to the language of the contract clauses.
Once these leases are owned by non-citizens (i am talking about the entire lease as Lessee not just a foreign investor with some shares)...then you ultimately (or the USA to be more concerned) do not know who in the future will be on your property and dealing with you whether production or shut'in or storage....I would think because our law systems are really designed around US citizens you would prefer to be dealing with a Lessee that is an American citizen/corporation/individual....so if they didn't produce and held your lands in lease and only did storage, etc. and even for years...you aren't stuck trying to negotiate or if needful litigate with a company in China or India, etc....or even Saudi.
Now if you were paid enough money on the first round..(the up front bonus persay) and you don't care if you ever get any more...or you don't care if the erect buildings on your property to store gas (not market)...and you don't care if the oil company uses up most your property for their equipment...or if China or Saudi or Russia owns your lease...then it won't matter to you.
But it matters to some of us. And some of us didn't even negotiate the contract but the land agent made away with talking to the ignorant, uninformed, and elderly...and some of you are now inheriting those leases...and going OMG how did they get that signed?
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Permalink Reply by 3rdk2fq1zz77d on
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USA, perhaps a bit of perspective on a couple of your "issues". Attempting to limit the eventual assignment of your lease is similar to building a house. It's your house and if it suits your fancy you can put a hot tub smack dab in the middle of your kitchen. Now when you go to sell that house at some point down the road you may not be able to find a buyer because not too many purchasers are going to view that as a workable concept. You could possibly get a lease broker to bite off on a lease with a restrictive assignment clause like what you are proposing...but that broker isn't going to successfully convince an actual oil and gas company to accept that lease due to its restrictive nature with regard to foreign ownership, so guess what, you don't ever get drilled or included in a unit.
You stated:
"so if they didn't produce and held your lands in lease and only did storage, etc. and even for years... or you don't care if the erect buildings on your property to store gas (not market)..."
Yes, there are a few simple facilities that typically occupy a well pad, separators/dehydration unit, a meter, probably a tank to collect produced water... but a building to store gas...that is complete fantasy. Gas is stored below ground, not above ground. If a producer elected not to sell gas currently due to very low prices they would simply not open the valve... the gas stays in the formation. There is no building.
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Jacque thanks for your input...and the rest here too.
I think the best way to explain ...is that we each take the time to review the policies of other countries about their natural resources and if an individual or corporation can own them or can a foreigner also have ownership? I did put a link somewhere a few times in this disussion about China's rules. this is why I say our government needs to help us define that assigns clause and /or look into what contractual agreements concerning the sale of our leases to foreign countries is on existing agreements.
Cause it appears to me there are no rules...and our leases that have not been defined in those terms...are being bought up...and quite frankly there may be no way to get them back from these foreign countries esp. if they own the working interests as well.
About storage...I am not that knowledgeable about the facilities installed on a drilling pad or where there is pipeline equipment or other processing equipment...I just know that if we knew that we could have just done a lease on just some of the items instead of giving away the whole thing..we would have. Our lease includes pipelines by the company doing the drilling and just about any kind of equipment that the company wants to install...rather we should have defined what that could be...as it does take up surface land when roads are put in, facilites installed,...and there was no limitation as to how much development or where except the set backs from house and water. Now the newer leases are defining those things..thank GOD.
What I meant by if they didn't produce ...but installed facilities to meet some clause s to extend the primary term beyond without another bonus amount ...then who knows when there would be production thereby having royalties? So if it is in the Chinese interest to develop their own shale first but having ownership of our leases...we have to wait if they don't want to develop it...whereas if the USA companies were developing they would want to sell here in America and overseas.
We don't know and we wouldn't be in control of such...and I tell you whoever owns those leases that especially are indefinite....has much control of our shale and the resources.
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Permalink Reply by Who is John Galt? on
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USA
The fact that many elderly people have already been exploited is motivation to
learn and share as much information as possible, and hope to prevent further exploitation of landowners, especially the elderly.
We certainly need some advocate groups or free legal aide program
in Eastern Ohio, especially for the elderly.
I've called Ohio State University and Capital Law School to request help.
However, no action.. yet.
Many law students are reportedly concerned about employment after graduation.
It would be beneficial for the students and the people of Eastern Ohio if the universities would consider establishing some programs for law students to gain experience in the oil and gas industry. Only a few qualified attorneys exist to represent the people of this area.
Living in Columbus provides easy access to cultural, educational and community resources, therefore many graduates seem to resist relocating to Appalachia.
What can be done to attract more lawyers to the area?
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Its a sad fact of life that the elderly get exploited literally every day in this country (probably other countries as well). There is no shortage of predators that have no qualms about conning an elderly person on a home repair scheme or virtually any other form of rip off... it makes the 6:00 news almost every night. Whether you care to admit it or not one of the characteristics of older people is that they tend to think they know it all and aren't always receptive to advice...even from their own children (USA Landowner will corroborate this fact). Additionally, it is the older generation that aren't always plugged into technology and do not access sites such as this. I don't say this to propose that we don't try to help elderly people, its just that it can be a daunting task.
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Permalink Reply by Linda A on
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exactly, Jacque - when we first heard landmen were in our area leasing up property, I immediately thought of an elderly neighbor, and inquired from another neighbor, and they said someone had already signed her property (100 acres probably) at an indecent rate.
There is a special place for people who do this and we may not know when it happens, but they WILL pay, one way or another.
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A landowner expressing personal preferences for the use and transfer of their own property and interests is not evidence of discrimination or prejudice !!
Landowners have the right and obligation to state their personal expectations with regard to management and distribution of their own property!
A good lease or contract should communicate the expectations and 'will' of the landowner, and help retain the landowners rights in court, should a problem arise.
The rights of the Landowner must be protected.
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Dear Jacque,
Thank you for clarifying.
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absolutely agree, 771!
A contract/lease is the place to spell out these things. However, if you limit too much, you will have no contract. We can't put too many strings on things such as where the money comes from and where... We can't control the world economy.
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I don't know if any of you have read the post I wrote about the example of real estate property being bought by a builder's rep...but I will state it again. You see the assigns clause was a problem for many years that disappointed many a seller when it was 'flimsily' used (or not defined)....so many a broker under the guidelines of the NAR (national association of realtors) started training their licensed representatives to inform the seller and buyer that the assigns clause needs more defined. I sold real estate for many years and did have one builder's rep that did not want to list to whom he would assign it to...so we had to construct some way to protect the seller, in that case we only gave them so many days to produce the sale.
When a home is contracted for sale and the buyer is contemplating assigning it (perhaps selling it or partially selling it) before or at closing...then the seller needs to have some idea as the up front monies are all they have to hold that property til closing for the full amount of the sale. The seller still wants to help the buyer to complete the transaction so will perhaps ask for a list of whom will buy the land from them or will ask for more money up front to cover expenses in case the buyer does them wrong. For the buyer is still the speculator in the situation, hoping to make monies on the deal even before it closes....but if they do not produce an acceptable assignee at closing and the deal doesn't close...then the seller was left with expenses and his house was off the market.
Now relate this to the oil/gas leases...if the bonus up front wasn't enough for the Lessor to be able to wait for production and endure what would be placed on his/her property while waiting for more monies....then he/she is in a precarious position if the contract has clauses that can eliminate any more monies given and still extend the contract lease.
now on top of that situation is the case that if the Lessor was told that signing the lease would help his/her own country be free of foreign dependence on energy resources ...and now he/she finds out that the new owners of their lease and the infrastructure of pipelines, processing plants, etc. re gas/oil are not getting them off foreign dependence as China, India, etc. buy them up...then if they want control back of their natural resources...they dont' have it. Effectively they would be allowing the NG and oil to be extracted, sold at market, they should be paid royalties, and when they go to purchase gas/oil at the pumps or buy products with such...they now know that the monies of profit are going to the Chinese not the USA that they were told would benefit from them signing the lease.
And if they find that China may decide to sell their lease to Saudi or Iran...they have no control over it. Why, because they left a flimsy assigns clause not defined...and the govt. of the USA doesn't have any restrictions on where the lease goes....but China does if you do the research you will discover that...now they allow investors...and list the percentage they expect , etc.
Again, let me state that the assigns clause is an important tool for the oil companies...as they are companies that do look for investors to help them drill and produce....so if the clause is defined correctly they can still do their lease share sales...but you as the Lessor needs to really understand how to define that clause without them losing their ability to assign. Many a builder will hire people who will purchase land for speculation and needs that assign clause to help them find the buyers for the lot/development...so a realtor and seller doesn't want to remove the abiltity to assign...just define it so it isn't a liability for the seller and real estate agency to make the deal work right.
now with a house/land sale...it is over at the closing table...deal done.
but with the sale of our NG and Oil infrastructure...we don't get that back at all unless these foreign countries sell it back..and that could be never or forever. That is the point of this entire discussion. they are not citizens of the USA. period. now should we require that they have citizenship...good idea...but their own country won't allow dual citizenship.
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USA,
Your posts are very informative and very well written.
You've obviously invested an enormous amount of energy into researching information and sharing it with others.
Thank- you very much!
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thank you for encouragement 771KS..you have a friend req.
Have you and others noticed that our world is not the same these days? Almost like invisible beings have landed and secretly got in people and enslaved their souls and now use them for greed, selfishness, and playing the bully? So this is the concern...as more and more people get more into 'all for me' and the 'leave me alone, I don't need you attitude' mixed with the 'let me help you" "oh, I would be glad to assist' or shall I say' love thy neighbor as thyself who actually do a good job of it" people....no one is minding the store of our USA assets....
so let people know we need to pay attention and try to put the reins on these quick sales (which are solving one company's problems financially and their stockholders)...but are putting a tremendous burden on the United States for today and our future in how this all will work over the long haul.
Listen, if I am right about those invisible beings invading (maybe came as a result of that space tape inviting them to planet earth...remember that as Carl Sagan put that tape/record together and that invite is floating out there somewhere.....well if I am right...don't know what we can do but tell the people to repent of the selfishness...in hopes that story about Jesus still works. But I don't know if those invisible hateful beings will even go away and let the souls free with the fear of GOD staring at them....but we can hope so.
click on picture center image then click on images each time...to the list.
if you cannot get that to work..then scroll down at below link and look for assoc. links...multimedia showcase to hear the contents.
http://en.wikipedia.org/wiki/Voyager_Golden_Record
I am not kidding...some of the people on our planet used to be nice...now some are bullies. What happened?
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