Famous Buell well (Buell 8H) about to be shut down!!! Chesapeake doesn't own horizontal drilling rights!

Looks like Chesapeake's "best shale well ever" is actually owned by Kenneth Buell.

You can find all the relevant court documents (very hard to get your hands on - rural public records...) and analysis here:

And the Buell well will soon look like this.

p.s. the well is in Harrison County, Ohio.

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Permalink Reply by Buell Well on July 3, 2012 at 1:17pm

Frank Nesmith:

Unlikely - I can't imagine Buell is much of a blogger since he is a 70 something year old farmer. No, impossible, because I am not Ken Buell...wish I was though since he's about to take CHK for a ride!!!

My suggestion is to read the court docs linked to from the website provided in the original post. If it's above your head then not to worry you are no worse off than CHK. I would suggest you sit tight and wait for the permanent injunction to be handed down from Judge Nunner.

The epic nature of CHK's due dilligence failure will all become quite clear to Ohio and the nation once the procedural formalities run their course. It's really quite amazing and quite an opportunity for Harrison County landowners and maybe landowners all over Ohio depending on their individual circumstances.

Permalink Reply by Hunter on July 3, 2012 at 1:47pm

This might cause CHK to change surface locations of wells but the type of reservation that is causing the problem  will only effect a small percentage of drilling units. CHK could have located the well next to Buells farm and still accessed the oil and gas unders his farm with no problems. Is Buell claiming he owns the minerals? I did see in the lawsuit were the 1989 dormant mineral act is referenced. He might own the minerals if he can prove nothing was done from 1969 to 1992. The original dormant act required no action by surface owner, the minerals vested back to surface owner automatically if no saving event happened in the preceding 20 years.

Permalink Reply by Buell Well on July 3, 2012 at 1:58pm

You don't understand, the surroudning 5 sq. miles (at least) have the exact same deed language. Go to the Harrison County Recorder's Office sometime and check it out for yourself.

Permalink Reply by Hunter on July 3, 2012 at 2:03pm

Then that could be a problem for CHK. They will have to pay for a surface lease then. I recall some forum members within a mile of the buell well that own there oil and gas rights.

Permalink Reply by Buell Well on July 3, 2012 at 2:31pm

Exactly. Why else would they have not drilled a single well in Harrison County in 12 months if the first, the Buell 8H, was their "best well ever" according to McClendon in the Q1 earnings call?

The rat's outta the bag...

Permalink Reply by Frank Nesmith on July 3, 2012 at 2:53pm

When Wall Street realizes this, I don't think CHK will be getting such rave reviews from their followers. This is all unreal!

Is this the acreage they just put up for sale? 

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 3, 2012 at 3:49pm

No, that's not part of their sale package.

Permalink Reply by Buell Well on July 3, 2012 at 9:51pm

Hardly matters. Their Ohio due dilligence was amateur as Buell new lawsuits puts beyond reasonable debate.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 4, 2012 at 8:58am

Their title process is actually considered to be fairly top notch.  They based title decisions on existing case law.  They cannot be expected to cause title defects on lands based on future, unknown rulings.

Permalink Reply by Buell Well on July 9, 2012 at 3:24pm

Running title is part of due diligence, but only one part. You can't blame the landmen. I guess it's incompetence and perhaps arrogance at the corporate and managerial level.

Permalink Reply by Frank Nesmith on July 3, 2012 at 2:50pm

I went back and read the court docs. I also googled some of the articles. I have to tell you that I just sat here and about shook my head clear off my neck today at the arrogance on Chesapeake. Whatever they get, they sure have it coming to them. I am really interested in this, as I'm sure most of Ohioans are. If this lawsuit is won, it will cost Chesapeake more than they ever expected. I guess every dog has his day, or at least I hope so in this case.

I wish Mr. Buell the best of luck. Are these leases "just" in that area?

Looking like that sweet spot will stay in the ground for awhile now!

Permalink Reply by Buell Well on July 3, 2012 at 10:12pm

It blew my mind too!

*at least* 5 square miles surrounding the Buell well (enough for 20 Buell wells) but nobody knows how much other acreage in Ohio has this deed language (I doubt even CHK knows for sure, because they did not consider this novel issue of Ohio law when running titles). The legal analysis linked to from the biggestfairytale dot com calls the deed language "fairly common". Perhaps someone should call Buell and/or attorney Beetham and ask them what they think?

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