if you could redo your lease...

Knowing what you know now, if you had the chance to change anything about your lease, what would it be?

I have one i haven't signed yet and plan to meet with a lawyer to review it next week and hope to take notes from those who have been through this process already.

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Permalink Reply by bo boboski on March 22, 2014 at 6:42am

I do believe a lawyer that is WELL experienced in oil& gas leases is a good thing. But when a landowner gets to thinking he  is so smart that he demand this & that in a lease that others apparently weren't smart enough to include or omit,holds out for top dollars, then the chances of ever getting lease will be slim. Better to play dumb, or the driller will simple walk,or go around. They have plenty of acreage leased already that they cant drill for many moons.

Permalink Reply by Mark McGrail on March 22, 2014 at 9:04am

bo,

I see your point, but it is important to understand all the issues. It doesn't mean a landowner should use this info to play hardball for crazy monetary compensation. Besides, where this land is located it will command top dollar anyway.

Permalink Reply by justme1 on March 22, 2014 at 6:49am
Trust me, I'm not an aggressive person and most of this stuff is over my head, but the company seems decent from what little I've seen and heard from others. It's just making sure things are protected for the future that I'm worried about and making sure i get a fair lease that will hopefully produce some income for my kids would be great.
Permalink Reply by Jim Litwinowicz on March 22, 2014 at 8:22am

Don't be fooled by a nice company.  Companies get bought and sold all the time. Also, they swap or "assign" leases quite often so you never know who will own your lease even six months from now.  Probably will be assigned several times in the next ten years. Only the actual verbiage in the lease will protect you in the future.

Permalink Reply by justme1 on March 23, 2014 at 3:48am

So even IF I sign with Rice at some point, they may not be who I end up with, even if they are doing the drilling and/or activity nearby?

Permalink Reply by Jim Litwinowicz on March 23, 2014 at 3:16pm

Justme;  yes, it is highly possible.  Rice is relatively small and may be bought out some day.  And companies do a lot of swapping.  Shell and Halcon have swapped in Mercer.  Shell and Hilcorp have swapped in Lawrence (Both Pa)  Companies have swapped all over.

If they swap or assign leases, the new owner must still honor all details in the lease so make sure your lease is tight.

Permalink Reply by justme1 on March 22, 2014 at 6:56am
I don't think i posted here but did on my County page....finding a lawyer is not easy....there aren't a whole lot of reviews that i can find on some and one i wanted to use was very expensive for review only.

Can i review with a lawyer and get suggestions and then go to the company with their suggestions for the lease, or should a lawyer do the negotiating?
Permalink Reply by Mark McGrail on March 22, 2014 at 9:30am

justme1,

If you proceed in this manner you will be paying the attorney for their time. If you are concerned about the total cost of using an attorney then you probably shouldn't be using that attorney.

Beyond that comment I would hope an attorney would comment.

I believe there are some reputable attorneys who are willing to conduct the initial discussion at no charge, but I can't speak for any attorney in particular.

Here are three options for you:

Alan Wenger 330-744-1111

James Brink or his partner Steven Townsend 855-534-7788

John Finnucan 330-571-0149

There are plenty of fine oil and gas attorneys within the area of the shale play of PA< WV and OH. These just happen to be people I know and would trust.

A word of warning; if you of the mind that you will be able to pick the brain of an attorney and then deal successfully with an oil and gas company, I would suggest that you re-think that position. The cost of a good oil and gas attorney will be returned ten fold down the road.

Permalink Reply by justme1 on March 22, 2014 at 9:36am
No that's not at all what i meant by that. The one attorney i asked first was expensive just for lease review, that didn't include negotiating. They didn't say that they would negotiate on my behalf, that's why i wondered if they review only and if that was typical.
Permalink Reply by Mark McGrail on March 22, 2014 at 9:57am

justme1,

Sounds like a review of a lease, and if that attorney was not a "true" oil and gas attorney you will have wasted your money. You need a "true" oil and gas attorney.

The people I listed are "true" oil and gas attorneys. That is not to suggest that they are the only "true" oil and gas attorneys. In fact I have seen the names of other attorneys suggested in other posts.

Again: my point is that you receive good sound advice from a qualified attorney. After all would you seek council from a probate attorney if you need advice on bankruptcy or

divorce ?

Use someone who specializes.

Permalink Reply by INVICTUS on March 22, 2014 at 7:16am

One thing I would definitely include:

Pipeline clause. The "right to remove" or "right to transport" stuff. You need to have total control over that little area of language. If you sign this, THEY DO NOT HAVE TO PAY YOU FOR PIPELINES!!!! They really will control you if you have this associated language.

Make sure that location approval  and everything associated with it does NOT have any language including "shall not be unreasonably withheld". stay away from that language.

Stay away from any kind of binding arbitration, too.

There are implications and meaning to each and every phrase that is included in your lease.

You need to be aware of these.

On second thought, since you have such a small plot, avoid pipelines altogether.

Include what Mark McGrail said: Non surface development.

Don't be afraid of an expensive O/G attorney. You get what you pay for, and you have ONE SHOT in your life to get it right. You WILL live with your work on your piece of heaven forever.

Get online and compare what you have to the older SURE / ALOV Leases. Those are reasonably good starters for language.

DO NOT BE IN A HURRY.

Permalink Reply by justme1 on March 22, 2014 at 7:23am
How do i find those old leases?

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