Eclipse-Oxford leases and extensions in Guernsey County

I am a landowner in Guernsey County with a 4 1/2 year old Oxford lease that is set to expire in about 6 months.  I, and apparently many others, have just received an offer from Eclipse to extend the lease for 3 years for a generous one time payment of $100.00 and the same 12 1/2%  royalty (but no line charges).  The extension provides for the grouping of 640 acres instead of the 160 acres in the old leases.  I had hoped that Eclipse would treat the landowners fairly, in contrast to the Oxford way, but apparently not.  The landman, who called me, reminded (threatened?) me that Oxford (now Eclipse) is still drilling its shallow wells to hold them by production.  According to the DNR records almost all of these shallow wells have only the tiniest of production of oil or gas or sometimes only salt water or nothing.  My neighbors tell me that Oxford comes in, sets up a small rig and drills for a few days and leaves.

 

One leverage the landowners have by not signing the extension is to deny Eclipse the right to put together the necessary 640 acres to drill a deep well.  If enough people do not sign the extension maybe we could get a realistic offer. 

 

Has anyone on here received a similar extension "offer"?  Is anyone actually signing these things?  Does anyone know of any law suits or other methods to stop this bad faith drilling of the shallow wells?  

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Permalink Reply by Philip Brutz on July 24, 2013 at 5:44am

I wouldn't sign it. Force them to drill a shallow well in the next 6 months.  At least then you will get free gas for your house.  You may want to consider forming an Oxford-Eclipse HBP landowners group.

Permalink Reply by harleyowner2003 on January 13, 2014 at 3:10am

Long overdue. Maybe State of Ohio needs to expedite protection for the landowners. Seems they put their energy in trying to serve themselves by increasing the severance tax. Government for the people, by the people?

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on January 13, 2014 at 4:52am

Careful what you wish for, Harley.  More government oversight rarely ends up helping people.  For examples of this see the last 30 years of federal government policy.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 24, 2013 at 5:44am

People who sign these deserve to be sent to a facility for psychiatric evaluation.  Eclipse paid over $4,800/acre for these leases and they had to have known that they weren't getting them extended for free.  There's a lot more money on the table here.

Permalink Reply by Anastasia on July 24, 2013 at 6:54am

Marcus, how did you come up with that price per acre?

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 24, 2013 at 3:43pm

Because I saw it on an investment report.

Permalink Reply by Anastasia on July 24, 2013 at 6:53am

They wouldn't be talking to you if they didn't plan on drilling on the property soon.  Better be careful - they acquired over 200,000 acres, there are plenty of other places to drill if you refuse to agree to enlarge your unit. 

Permalink Reply by bo boboski on July 24, 2013 at 8:07am

$100. bucks & 12.5 %? Are you serious?  I thought that Eclipse was one of the better companies to work with. WRONG!

Permalink Reply by Trekker on July 29, 2013 at 7:26am

Since I originally posted this topic, a couple of people in Guernsey County have told me that Eclipse-Oxford has stopped drilling shallow wells.  But I have not been able to verify anything.  Does anyone have any information on this either way?

I was curious about problems with Oxford, so I checked the Belmont and Guernsey Court records to see if there were any lawsuits.  There are 21 cases in Belmont County and 5 in Guernsey County listed of people suing Oxford.  The content of the suits is not listed, but I could make a good guess.

 

 

Permalink Reply by evan on July 29, 2013 at 9:21am

Oxford just drilled a bunch of verticalls around here. But since the takeover by eclipse i havent seen any more drilled but i wont be surprised if they do

Permalink Reply by Philip Brutz on August 16, 2013 at 1:43am
Permalink Reply by Rob Rotz on July 30, 2013 at 6:34am

I have a 4 yr old lease with ox/eclipes.  i called and talked with Brett Marlow the guy who took over Oxfords office and his exact words to me were " we have suspended all shallow drilling and if we do not get to you before your lease expires we will lease you at the going rate "  I swear to God that came out of his mouth. i almost fell over and i had him repeat what he said again to me.  Do not sign any $100 extention.  Unless he is more devious than Oxford i believe what he told me to be true. Im going to give him the bennefit of the doubt right now until he looses my trust.

He said they want to make it wright with the landowners.   Thats all i got right now.

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