Some New Info On Two (2) Unitization Orders In Ohio

http://www.oilandgaslawreport.com/2013/04/22/odnr-issues-two-more-u...

Take the link to a description found regarding two (2) new Unitization Orders (Forced Pooling Orders)

in Ohio.

I'm reading one (1) pertained to O & G Companies being force pooled and another involving O & G Companies as well as individual unleased landowners. 

Looks like to me (in one instance) the unleased landowners received a bonus payment while the O & G Companies (in either instance) did not.

Check it out and discuss your interpretations.

J-O

 

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0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 23, 2013 at 7:43am

Posted this to Trumbull County earlier.  Bad deal for the O&G companies who are forced into the Lennington Unit.  The second one was at least compensated with a little cash and a 15% royalty but that's still not a great look.

Permalink Reply by TM on April 23, 2013 at 7:50am

Interesting article. Does anyone know if someone with an old HBP lease can be force pooled into a unit for horizontal drilling?

Permalink Reply by Paul Martinelli on April 23, 2013 at 8:18am

that is how I read it....hbp leases can be forced pool just like unleased land.

Permalink Reply by Billy Park Whyde on April 24, 2013 at 8:09am

Can't see how a contract can be invalidated by the ODNR and not a court that is extremely cautious in contractual matters.  

Permalink Reply by Paul Martinelli on April 24, 2013 at 8:16am

It is a State law.....

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 23, 2013 at 8:21am

Yes.  The company that holds the lease can be compelled to add their land and participate in the well.

Permalink Reply by Joseph-Ohio on April 23, 2013 at 9:23am

Wondering about forcing a well pad on your property ?

Pipelines ?

Roads ?

Storage ?

Timber ?

Crops ?

Waste Frac Fluid Injection Wells ?

Can any or all be forced on a Force Pooled Landowner without compensation ?

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 23, 2013 at 9:02am

They're pooled into the unit and they're essentially given the lease that everyone else has. 

Permalink Reply by Joseph-Ohio on April 23, 2013 at 9:19am

Does that mean that if there are no restrictions on 'the lease everyone else has'  and your acreage becomes part of the unit by becoming  'force pooled' that there would be no restrictions included pertaining to your acreage.

Sounds like it could become a bad situation.

We're looking for a 'Non Surface Development' type of leasehold agreement and 'no injection wells permitted' for our lands.

To have something else forced on your lands doesn't sound like it can be right / legal.

What's up with that ?

 

 

Permalink Reply by Gary L on April 23, 2013 at 10:58am

Joseph-Ohio, Thanks for posting this subject, it gives us more definitive insight as to what we can possibly face. I was not aware of some of these issues and some are hard to accept. I add this link, was not aware they can drill and do this.

Read down the page: Fraud or Hard Truth

http://www.lexology.com/library/detail.aspx?g=d7f83e99-b69e-4115-b4...

 

Permalink Reply by SAH on April 24, 2013 at 4:20am

What happens if a unitization order is issued, and some of the leased land has unit size restrictions below the ODNR approved unit?

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 24, 2013 at 4:32am

I asked that same question yesterday.  Haven't gotten an answer back.

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