Unitization Notification

We were recently notified that our property would be unitized.  The property is about 570 acres, approximately 6 of which fall with in the proposed unit.  Looking at the borders the unit takes, our property line is probably about 500-600 feet from and parallel to the location of the horizontal well.  It is clear that they extended the distance from the well to encompass a small part of our property to unitize us.  The line then juts away closer to the well once it is past our property.

I know PA (ridiculously) has no laws as to set backs or how unit boundaries must be drawn, so is there any use trying to fight something like this?  We stand to have our whole property tied up in a unit that only includes 6 acres of our property that may or may not ever produce a royalty check, all so they can tie up the whole property lease.

I attached a poorly drawn sketch of the situation, hope it is somewhat clear.  But anyone have any advice as to what we can do, or are we basically stuck with whatever the gas company decides to put on paper at any given time?  

If they can extend a unit 600 feet from the well what stops them from extending it 1000 ft, or 1500 feet etc to tie up land to hold leases?  It seems there is no limit to what they can include in a unit.

This is sort of the opposite situation from the property owner who is 50 feet from a proposed well but is not included in a unit.

Any advice or comments would be appreciated

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Permalink Reply by Eric on November 27, 2013 at 2:53am

can you split that portion of the parcel out to not include the rest of your property? 

Permalink Reply by Robin Hood on November 27, 2013 at 8:01am

That is just so sad. My condolences. This is a typical Chesapeake move.

Permalink Reply by Chris F on November 27, 2013 at 8:32am

I doubt we can split out that part, i assumed that the whole reason they extended their unit into our proerty by 6 acres was to hold our lease.  I dont believe there is a pugh clause, it is my dads property but id have to take a closer look at the lease.  I think we are generally screwed though.

I know it makes chesapeake look bad for doing it, but to be honest its a business move on their part, and its really the state (PA) that is letting its citizens down by not properly regulating the unitization practices like most other states do with proper setback rules.

Im sure Chesapeak sits down and determines how much land they can tie up in leases by stategically spacing out however many acres their unit can be such that it touches as many properties as possible tying up the most land.

It is sad, but maybe eventually our state representatives will stop focusing its energy on making profit for themselves and start actually trying to protect its own citizens who elected them.

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