Bank draft returned more than a year later...

Signed with Shell on Dec 15, 2011 and just received bank draft back.  Reason for return was listed as "Title and Curative issues".  I spoke to Holland Services, the signing agency, who stated that my deed was never researched because I only had 9.141 acres and Shell would not accept less than 10 acres.  Anyone have suggestions?  Any other folks with this problem?  Any lawyers out there with legal advice?

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Jim ShoosPermalink Reply by Jim Shoos on June 25, 2012 at 3:12pm

Either Holland Services who presumably has a contract for services with Shell didn't follow the instructions that Shell provided or Shell changed the rules of the game.  Whether or not you have a claim depends on what you signed.  Was it conditional in nature?

Permalink Reply by Thomas Allan White on June 26, 2012 at 4:12pm

There are no specific conditions listed on the lease, but we were told that as long as we had the mineral rights on the property, the lease would be valid.

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on June 25, 2012 at 3:18pm

not a lawyer...but what does the contract state in the terms of agreement regarding the recording of the deed?

just post the clause as you need to provide a bit more.   Cause you say that Shell does not accept less than 10 acres..is that in the contract you signed?   

the other important part was did they as Lessee even sign the agreement and provide you with a copy of the signed agreement (was it recorded as well?)

so look and see if there is any statements regarding the amount of acres accepted....for if you have legal title and they should have been able to proceed with 'title and curative' as stated on your contract...then I recommend you call an attorney...which you should anyhow...but I am sure you want to know if it is even worth your while..or you wouldn't put it here for discussion.    

But even if you do have a real reason to complain...is it going to be worth it for the amount of money spent on litigation and your time?  surely the landagent from Shell should have disclosed that to you up front...as they read the legal desription when they even get your name to call you.

I will state that many people in the state of Pa. have leased with even one acre...but I don't know about 

shell...but 'chesapeake and chief leased many leases under 5 acres...and some were included in 'land groups' also.   Have you contacted a land group?  perhaps you can add your acreage that way? and a land group may be the way for you to quickly get some monies for leasing... 

wish you success Thomas...it must be disappointing.

Permalink Reply by Thomas Allan White on June 26, 2012 at 4:09pm

My lease identified my acreage as 9.141 acres as did the memorandum of lease that Holland Services filed with the Guernsey County Records on January 25, 2012.  The memorandum was signed by Kevin E. Hughes, Attorney-in-Fact, SWEPI LP.

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on June 29, 2012 at 5:41pm

Sorry I am just reading this...Thomas,

You didn't state the exact clause from the title and curative clause off your contract.   Most lease contract have those clauses.   If there is no clause that identifies a min. requirement by Shell of ten acres and the contract was signed and even recorded (find that out) as you stated it had been awhile since signing in DEC.    I would say contact a oil/gas litigation attorney (some of them will discuss via telephone at no charge as if there is a case then they will tell you and their payment will come out of what they win for you...I do know of one in Pa)....of course you have to decide if it is worth it for your time also.   But if leasing to Shell via Holland kept you from leasing to another company who would take your acreage...they kept you on contract for many months ...that's a hardship and a possible financial loss.   I am not an attorney but I have done about ten years of real estate contracts...and the idea is when a contract is done that two parties agree and it is consummated...so look at the title curative clause and see if they have a min. as the 9.141  acres was on your contract ....   So call a gas/oil litigation atty and find out if they think you have reason for pressing in.. ...Some attorneys that do leases do not do litigation that is why I mentioned that....and since you have a contract already (not a new lease) that may fall into an area of litigation if the atty thinks so.    Now I do not recommend going the legal way that way unless it is really a necessary step.....but  i do have a question...Have you called Shell yourself? and told them...why not do that first?   It sounds to me that the Holland rep. was unawares of the Shell min. requirement.

I also mentioned to you that you aught to see if there is any land groups in your area (there are county groups here at gomarcellusshale so you could ask someone)...  you might do better in getting your acreage involved that way.   I hope you success...when you do lease do take your time with the contract...as you can see doing gas leases can be somewhat tricky to understand.

Permalink Reply by Drew on June 27, 2012 at 3:57am
Well my 90 banking days is officially tomorrow, the 28th. Have not heard anything from anybody. I know Shell has started the Mayberry well about 3 miles from my house. This is in Lawrence County, Pa.  From what I hear in my area no leases have been canceled. All payments by Shell are being paid.  I know they are busy and running right up to the 90 days but are being paid.in my area.  I will see tomorrow.  Hope I don't jinx myself.  Lol. 
Permalink Reply by Billy Park Whyde on June 27, 2012 at 8:46am

 Hey Drew I hope it comes through for ya!!!! :) .   I my wife and I push mow a little over 2 acres around the house. That will change.  It will be nice to come home and get on my new riding mower and be done and not take 4 hours of watching my wife bust get butt.  Going to surprise her with a new Camaro.  Her dream car. Can't wait. Gonna get a big bow and put on it.  Could go on and on.  Gonna go buy a bunch of food for the people at the Rescue Mission also.  

Be smart and enjoy the ride.

Wish everyone could be happy.

 

 Well I sure hope you are, spreading happiness is goodness.

3rdk2fq1zz77dPermalink Reply by 3rdk2fq1zz77d on June 27, 2012 at 9:42am

"4 hours of watching my wife bust get butt."

I need to swing by your house... that would be some entertainment!!!

Permalink Reply by Drew on June 27, 2012 at 11:40am
Well people I got the call I was waiting for. A certified bank check arrived at my bank today.  The Bank Manager called personally.  What a suck up. He proposed all these ideas to me.  After he was done I said this to him.  Why did you never call me when I only has 100 dollars and asked me if I ever needed anything.  Now that I have a nice six digit account you want to be my friend.  I then told him no thank you   It's a shame how a large sum of money changes people. He wanted to continue to talk about it and I was very nice and told him no thank you.  I asked him if I had immediate access to it. He stated there was a three day business day hold on it. I said thank you and hung up the phone.  
After my conversation with him I just sat there and relaxed.  I mean just totally relaxed.  I do not think I was ever so comfortable.  

Next week I am going to the rescue mission and taking them shopping.   Then I will take care of some personal matters. 

THEN CAMARO SHOPPING FOR MY WIFES GIFT. 

I have been reading this forum for some time. I have seen the dissapointment.  I feel for the people who this just did not work out for.  I guess I am lucky for where I live.  It was mine though.  My wife and I worked hard for it all.  We bought land that nobody wanted years ago.  Then we bought more.  

Thanx for listening everybody.  Shell has treated us good.  I have no complaints.  None. 
Permalink Reply by Drew on June 27, 2012 at 11:42am
By the way it was 89 banking days.  
Permalink Reply by lynn on June 27, 2012 at 11:56am

Congratulations.  It was unreal for us how much pressure it took off, and you're lucky-our bank held ours for two weeks.  Not trying to rain on your parade but just be sure you put back enough for taxes.  We were told to pay ours THAT QUARTER or they could hit us with late charges.  Congratulations again and enjoy!!

Permalink Reply by Billy Park Whyde on June 27, 2012 at 12:03pm

Hot diggity dang Drew!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Ah now you hire someone to mow the lawn! CONGRATULATION!!!!!!

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