Republican Party fusillade catches Western PA landowners by surprise - Shock and Awe!!

The entirety of the Republican Party has opened a full scale attack on PA landowners and royalty owners, but especially on those in Western PA.  This attack is called SB 259.  It will cost Pennsylvanians millions of dollars, money which will go straight into gas company coffers.  Here is a newspaper article explaining what has happened:

PA landowners come under sharp, unexpected attack!

SB 259 sits today on Governor Corbett's desk awaiting signature.  Contact him here:

Contact Corbett here - Tell him to veto SB 259!

If enough of us take action right now, this impending robbery can still be thwarted!!  But time is very, very short.  You must act now.  Tell Corbett to veto SB 259.

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Permalink Reply by Rick on July 7, 2013 at 1:46am

Look, here's the deal. Many many landowners in pennsylvania, particularly western pa, are held by production. These companies that hold these acres have sold these rights several times for thousands per acre... as much as $16,000 per acre as i recall. Landowner got nothing... we accept that because a deal is a deal. We as landowners failed to look in our crystal balls and see that horizontal drilling was gonna happen in 10 or 20 years... ok still our fault... a deal is a deal. I've heard of O&G companies trying to alter leases because of misspelled words or wrong puncuation.Ok, now, some gas companies are finding out that their coveted HBP leases that they over paid for, may not be exactly usable with the real estate required for the larger footprint of a horizontal bore and pad. But those are probably just a small percentage of leases really. They proudly display the old law, sometimes dating back to the 1800's whenever you ask for a concession, or adjustment, and say, a deal is a deal. Well it seems now,that they are losing a little bit of effectiveness for their strong arm tactics... but still a deal is a deal. The only way they can keep their advantage is to change the legality of the deal so that it remains in their favor... then they can continue to say " a deal is a deal" I believe they are arguing that they didnt forsee the technology of horizontal drilling and the leases they signed dont fit the new technology..and they want a do over... well the landowners didnt forsee the horizontal technique, and if they want a do over, we should demand one too! Seems like O&G may be picking a fight with some good ol boys (and girls)... Well folks, shall we???

Permalink Reply by Joseph-Ohio on July 7, 2013 at 2:07am
My opinion.
When a lessee alters the agreement by instead of drilling vertical
wells to cover pooled aceage; drills long horizontal wells it's a
different deal and not per the original agreement.
That's why they're trying to initiate a new law to make it legal.
No fair.
No to the new law.
Permalink Reply by Bill Bergseid on July 8, 2013 at 3:05pm

I can almost bet the original lease never said how the lessee had to drill the well.  He's just trying to figure the best way to get the oil/gas out of the formation and REGARDLESS of what it costs him (a $1 million vertical well or a $10 million horizontal well)  the lessor still gets his royalty percentage cost free.

Permalink Reply by Bill Bergseid on July 8, 2013 at 3:03pm

Rick-

If I bought my farm 10 years ago from a seller who didn't anticipate horizontal drilling, did not put much value on the minerals, and reserved none, is my deal a deal?  Or does the seller get to renegotiate our sale?  Is it really fair that the Marcellus began to develop right after he sold me the farm?  Maybe some would say so.  But most would say, you make the best deal you can at the time, both parties leave the closing feeling they did what they wanted to do, and both live with the consequences.  If something changes after the sale that enriches the buyer, so be it.  No different with an oil and gas lessor and lessee.  The lessor didn't have a gun to his head to make him sign.  He could have put up his money to drill a well or waited for some magic bullet like horizontal drilling to come along.

Permalink Reply by Rick on July 8, 2013 at 3:56pm

Here's the deal Bill... and this is the issue that is making people angry... IF THE LESSEE WANTED A 640ACRE UNIT WHEN THEY SIGNED THE LEASE BACK IN 1998 OR 1950 OR 1899, THEN THEY SHOULD HAVE PUT IT IN THE LEASE!!!! Right...  exactly... a deal is a deal... but the O&G companies want freedom from required renegoiation if your lease doesnt address unit size, or even says no unitization... Thats what this bill does... and...THATS WHAT IS NOT FAIR ! DO YOU GET IT??? No one held a gun to the lessee's head either... they should have had the foresight (like they tell us all the time) to see that they might need unitization at some point in the future... after all they knew the business... they had the best oil and gas attorneys... they screwed up.. now they want a do over... thats too bad!! Unfortunately they have a bought and paid for republican senate and governor to do their bidding.... so we as constituents get hosed... THATS the issue...

Permalink Reply by Mark McGrail on July 8, 2013 at 4:35pm

Rick,

Well put.

Another issue is that many of these old leases were bought by companies hoping to cah in on the Marcellus bonanza.

Only one problem, they didn't have anyone read the leases when they bought them. Now they want a "do over". All at the expense of the land owner.

Governor Corbett should veto this bill and protect landowners, his constituents.

Permalink Reply by Mark McGrail on July 7, 2013 at 2:55am

In the end, if the Governor signs this legislation I believe the landowner will only have one avenue of redress; the courts.

I am not an attorney so I can't say for certain what grounds landowners might have. I would guess a violation of Constitutional rights (private property).

There may also be some issues with the laws governing contracts.

My point is that I hope landowners who find themselves "forced" into units will fight it in court.

I would be willing to help create an effort to raise money for legal fees.

Have you made that call? Written that e-mail ?

Permalink Reply by Rick on July 7, 2013 at 3:06am

Mark, seems to me that the O&G companies particularly EQT are trying to get legislation in line with their desires, instead of taking this matter to court ... probably because they would lose in court. Therefore they are really trying to subvert our form of government checks and balances by keeping the judicial branch out of it all together... snakes...

But shouldnt this new law only apply to new leases written starting today? if I had known they would pool me into a contract with my neighbors... i wouldnt have sign a lease at that time to allow them to drill the simple vertical well that they did..

Permalink Reply by Mark McGrail on July 7, 2013 at 6:32am

Rick,

I'm not an attorney, but I would think that this legislation would be unconstitutional because it deals with contracts already in force.

For this reason and others I think some landowners will challenge this in court.

Permalink Reply by Joseph-Ohio on July 7, 2013 at 3:41am

It's a sad testimony when your elected government seems to continue busying itself creating fodder for court cases by negating and mis-applying rules meant to protect the individual rights and private ownership and bends them to favor special interests with enough money / clout to create the turmoil.

In a nutshell - that's what we have happening in Pennsylvania if you ask me.

Beyond sad - it simply stinks.

Kindly act and do all you can to avert this kind of tripe from infecting Ohio as well Mark.

How about forwarding these posts to Pennsylvania's Governor as well as Ohio's and Ohio's Legislators as well as Ohio's Agricultural Committees reviewing similar proposed new rules / laws / legislation ?

Permalink Reply by Rick on July 7, 2013 at 2:58am

Here's a laugh... no one remembers who's idea it was! Come on Everette... at least take credit for proudly raping your constitutients... vote this jerk out! http://triblive.com/business/headlines/4303895-74/bill-pooling-prov... 

Permalink Reply by Rick on July 7, 2013 at 5:21am

Interesting, look at Jessee White's comment at the bottom of the page.. http://triblive.com/business/headlines/4303895-74/bill-pooling-prov...

here's how the vote went in case your interested in how your local rep voted AFTER they found out they were screwing their neighbors and constituents... http://www.legis.state.pa.us/CFDOCS/Legis/RC/Public/rc_view_action2...

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