wrong amount of acres on lease---your opinion. This ever happen to anyone else?

About 5 years ago I leased my mineral rights to a company for $80 a acre for 37.1 acres. . Chesapeake bought the rights off them about 2 years back. Chesapeake is going to drill very soon and I am in the pool, they just finished the pad.

Chesapeake just sent me a check to renew the lease for 5 more years. I had no choice it was in the lease. It clearly states it is for 37.1 acres. My tax statement and the county recorder clearly show I have 39.1. This mistake was made by the first company that leased my rights.

I called Chesapeake a half dozen time and they never return my calls. When we signed to get in the pool the land man said it would be for the 37.91 acres but Chesapeake only owns the mineral rights for 37.1 and I want paid for what they don't own. I do not want to tie this up in court and postpone the drilling. I was taken once for leasing my mineral rights for $80 a acre and I don't want to just give Chesapeake 8/10 s of a acre free. Any suggestion? Lawyer cost are unreal and would eat up the money I would get.

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Permalink Reply by Tom Driscoll on March 24, 2014 at 4:48am

The deed shows originally 40 acres. The railroad came and took 2.09.

Permalink Reply by BIG on March 24, 2014 at 4:38am

This is a title issue.  The original survey could have been off by 2 acres, or the mineral rights for the 2 acres could belong to someone else.  Either way, a title check and survey should be completed to get the accurate acreage.  I have seen surveys that were off by 5 acres because they were using estimates in the 1930's and never had it resurveyed since then.

Permalink Reply by Robert Bond on March 24, 2014 at 5:56am

I own a farm that was last surveryed in the 1840's wonder how accurate that one is.

Permalink Reply by Kathleen on March 24, 2014 at 6:17am
I love this question.

So if the survey agrees there is more land then leased, would the gas and oil co., be off the hook since they went by what was then deeded? Or would they have to pay up for the additional acreage.
In my situation, 1st when the declared pooled unit info came it appears there's just a small error how much they say they leased to what they did.

Now though, I've been surveyed and I have more land then we thought, by almost an acre. My deed says +- after the acreage amount but we leased for a set amount of acres which is now proved wrong.

I'm sure a lot of people will have this happen at some point, during reselling or buying and having the land surveyed.
Permalink Reply by brat on March 24, 2014 at 8:03am

My oil and gas deed says 122 acres "more or less"  (it became 2 1/2 acres more after a recent survey), so as I understand it,  if chk drills there, they get the extra acres to include in there well plat.  Acres are held by production from old Clinton well.

Basically I get the shaft for the 2 1/2 acres, no  bonus , no payment of any kind from the original driller of the Clinton well.   The only hope  I have is that if a Utica well is drilled, that I will get royalties on that extra 2 1/2 acres...guess it depends if old Cheesepeak feels generous.

Permalink Reply by Tom Driscoll on March 24, 2014 at 9:24am

Don't leave us hanging----what happen?

Permalink Reply by owner on March 24, 2014 at 6:37am

When your property is taken for a road, does the gov't only get the surface rights or do they get they also take your mineral rights

Permalink Reply by brat on March 24, 2014 at 7:58am

You pay taxes to the center of the road don't you? (assuming you only own one side of the road.)

Permalink Reply by Kathleen on March 24, 2014 at 10:09am
One of the townships, I was told, around here was going to try and lease the roads. They were told they can't, it's the landowners property under that rd.
Permalink Reply by evan on March 24, 2014 at 11:50am

Kathleen is right about landowners owning to the Center of the road. I suppose there is Times where this isn't true but I've seen it a bunch in the past few months especially with these companies leasing small cities. They leased Quaker City and paid according to lot sizes then they figured out the landowners owned to the middle of all roads and alleys so they cut everyone Another check to make up the difference they were shorted

Permalink Reply by Mike C. on March 24, 2014 at 12:21pm

the OGL is going to read 40 acres more or less.  A fall back for the O&G is there is probably additional language that would include all contiguous properties.  Another fall back is they probably have a reference to the acreage through a deed reference or a bounded by reference.  Lastly if the acreage falls inside of a parcel number that is listed on the OGL then it will also be found to be part of the lease. 

While on its face this would appear to be something to get worked up over, unless the acreage was intentionally left out it will be included.

The only thing you may be able to do is to show that you were underpaid on your bonus due to an error.  They will then have a reasonable time to rectify the error by paying you the difference.

Permalink Reply by RichR on March 25, 2014 at 3:54am

Normally highway right-of-way is taken as a surface easement, but that all depends on how it is written up.  There is usually no interest in the mineral rights.

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