New member with a lease question

Hello, we have been approached to lease our farm for oil and gas drilling, but unlike many on this site the lessor wants to secure the rights to the layers under the Utica. The lease states from the top of the Blackriver down. The landman said their interest was the Knox Formation. Has anyone else experienced this? Also, are there other layers in the Knox that can be horizontally drilled? We are on SE Ohio. Thank you in advance.

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Permalink Reply by TM on March 25, 2014 at 5:23am

Which county and township are you located in Nancy? Who is the company wanting to lease the rights?

Permalink Reply by Nancy L on March 25, 2014 at 1:49pm
Morgan County York Township. I would rather not disclose the company in case the landman frequents this site.
Permalink Reply by cj wyalusing on March 25, 2014 at 2:38pm

What does it matter if he is on this site he at least knows that his speel is seen by all and can only help you and any other stories he is telling  your neighbors remember strength in numbers.

Permalink Reply by TM on March 25, 2014 at 2:55pm

I was thinking the same thing CJ. What I am wondering is why you did not ask the landman these questions Nancy? It is not like he is not going to let you sign a lease just because you came on this forum to ask a few questions. He should have all the answers to these questions as to what their intentions are for wanting you to sign a lease with them. Did they say they wanted to drill horizontal or conventional vertical wells in the Knox?

I will take a guess and say it is probably Artex Energy that wants to lease you. I could be wrong though.

Permalink Reply by Tony Yurina on March 25, 2014 at 3:29pm

I believe there are at least four formation in the "Knox" group.... Beekmantown, Rose Run, two others... 

Permalink Reply by cj wyalusing on March 26, 2014 at 12:52am

Good morning nancy  if you notice the date on r2d2 second attachment it is the 1980s these leases were probably paid  5 dolars a acre possibly in no way should you sign on unless you have a true oil and gas attorney good luck cj

Permalink Reply by Nancy L on March 26, 2014 at 2:10am
Thank you All, I had no idea Chesapeake was working with Artex. Does anyone know how to get a copy of the agreement for Morgan County? Our documents are not online.
Permalink Reply by TM on March 26, 2014 at 4:57am

Nancy,

You could save the document that was posted by r2d2 above and then print it out. If not you could go to the Morgan county recorders office and find the document there in their computer database. Do a search for Artex or Chesapeake and you will be able to find the document. The recorders office will charge you money though probably to print the pages out for you.

Permalink Reply by James Vanderink on March 26, 2014 at 5:03am
The document that R2 posted is the same as the one in Morgan County. The document is the same for Muskingum, Perry and Morgan. On that Muskingum note.... has anyone heard Chevron is building a compressor station/Dehydrator unit west of the Anadarko well in Meigs?
Permalink Reply by Bobby Jo Smails on March 26, 2014 at 10:34am

As a landowner, I negotiated with the oil company myself rather than getting involved with a group. I find it funny that people are so skeptical of the motives of the oil and gas companies, when the money hungry attorney's out there are the ones who are fear mongering and trying to form "landowner groups."  Gee, are the attorney's helping you guys out for free?  I bet not.  I bet they take at least 4% from the landowners for "negotiating" on their behalf.  

Meanwhile, the oil and gas companies have a laugh because they can make an entire area settle for the same amount of money per acre.  I, myself, negotiated for $1000 more per acre on my own, compared to a neighbor who went with a "group."  Oh, and his attorney took 4% of his money too!! LOL.  And, by the way, your attorney who negotiates for your group likely was a family law attorney or a drunk driving attorney before the oil & gas boom hit.  Now, they call themselves oil & gas attorney's.  Go figure!!

Best of luck!

Permalink Reply by James Vanderink on March 26, 2014 at 11:45am
I'm not sure of your motive Bobby Jo. The advice to seek an oil/gas lawyer for the young lady is good advice. No mention of a land group at all. I'm not sure where you are going.
Permalink Reply by Bobby Jo Smails on March 27, 2014 at 4:19am

I agree that an oil and gas lawyer is a good idea for most people.  I don't agree that anyone should use a self-proclaimed oil and gas lawyer who specialized in another kind of law prior to the boom. To me, it seems like they are preying on landowners who don't know any better.

No motive here, as I don't have a dog in the fight.  Just believe that landowners such as myself should be presented every side of the equation.  Landowner groups and attorney's sometimes muddy the waters.

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