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Permalink Reply by Joseph-Ohio on September 10, 2014 at 12:29am

Maybe (and unfortunately) we might expand on that theory and assume it might hold true for any amount of acreage.

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Permalink Reply by Barry D on September 9, 2014 at 3:31pm

Lonnie,

Not knowing the specifics of your situation I can only make some general comments.

In general what the person from Western Land Services is telling you could be true. Especially since you own such  a small piece of property.

It is possible that the lease is void, if so the company would have to sign a new lease with bonus money and better percentage.

But I have a couple of questions. First; is your land in Shenango Twsp? Is your Grandfather/s name Leroy? Was there ever a well on your Grandfather's property? If so was the well there before the land was conveyed to you or after you received the land? Did you or anyone receive royalties?

What was the term of the lease on your grandfather's land?

There are so many more questions but that is a start.

In the end you may have to obtain professional help which will cost you money. You will have to decide how much you are willing to spend.

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Permalink Reply by Lonnie Ray McFall on September 10, 2014 at 4:29pm

thank you Barry. my Dad is Leroy. My Grandfather was Steven Hanzes and the origal farm was located in both mercer and lawrence Co. My mother bought the farm in the 80's and leased to Atwood in 1990.with the small amount of land we didnt think it was worth calling an attorney. My dad did say that he signed the ratification of the Atwood lease about a month ago

under the advise of an attorney. What I had a hard time understanding is that they keep saying we have a royalty rate at 12.5% but in realty we will only get a portion of the 12.5% because it is divided between all the property owners in the pool according to the acrage.the Original pool of land was 150 acres (37of my granddads and the rest was dads farm) the ratification that has to be made for the horizontal drilling is to get a minimum of 640 acres in a pool and now that 12.5% will be divided with all the other property owners that choice to be in the pool.

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Permalink Reply by Barry D on September 10, 2014 at 5:31pm

Lonnie,

You will receive a proportionate share of the 12.5% royalty based upon your acreage and the size of the drilling unit. In your case 4/640.

Yes you will share with all landowners in the pool/drilling unit. Sure it sounds like a small amount, but remember it is possible that more than one well will be drilled on the unit. So you will continue to receive royalties as long as the company keeps drilling wells on that unit.

Hey, it's found money.

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