ECLIPSE RESOURCES AMENDMENT TO CONTRACT EXTENSION

I HAVE BEEN CONTACTED BY ECLIPSE ABOUT AMMENDING MY CONTRACT ALONG WITH SEVERAL OTHERS IN MONROE COUNTY OHIO.  MY CONTRACT IS SIMILAR TO THE SEOLA CONTRACT DONE BY JENNIFER GARRISON.  THEY WANT TO PAY ME  IN ADVANCE $1,000 AN ACRE TO CHANGE MY CONTRACT TO 5 -0NE YEAR EXTENSIONS INSTEAD OF THE $5,000 AN ACRE FOR THE ONE TIME RENEWAL.  MY CONTRACT DOES NOT EXPIRE FOR ANOTHER18 MONTHS.  I UNDERSTAND WHY THEY WANT TO DO THIS, BUT THE AMMENDMENT IS SEVERAL PAGES LONG.  I LIKE THE CONTRACT THE WAY IT IS WRITTEN NOW AND I AM AFRAID THE WORDING CAN CHANGE OTHER PARTS OF MY CONTRACT.  I AM IN CONTACT WITH MY LAWYER TO DISCUSS THIS, BUT I WAS WONDERING WHAT OTHERS IN MONROE COUNTY SIGNED WITH ECLIPSE THINK OF THE WORDING OF THIS AMMENDMENT.

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Permalink Reply by lance on February 12, 2016 at 7:04am

Hi Matt, have you heard anything at all about ASCENT Resources (Aubrey M.) doing anything similar to ECLIPSE? I have a lease with them do to expire in October. I haven't hard anything from them as of yet. I heard he may be running out of money too. I look for him to try to sell out if that's the case.   

Permalink Reply by bo boboski on February 12, 2016 at 7:35am

Not Matt, but I seen a statement on this site from a guy who goes by,"nc man",who claims he got a letter from Ascent's land Co. that was offering him a 1 YEAR lease extension. Aubrey got his lease from Shell. It expires later this year.

Permalink Reply by searcherone on January 26, 2016 at 5:12am

In my first contact with the landwoman  I point blank asked what would happen to the lease if Eclipse went to Chapter 11,  well she didn't know.

Yes, having the language of the original lease would be good because there are great clauses in mine.

Just remember that they are logging every time they speak with you or attempt to make contact with you and recording your response.   You should be doing the same.

Barry, in a Ch. 11 or Bankruptcy could the leases be tolled until the proceeding ended or they were bought by another company?   If so its possible your one year extension could extend several years.

Permalink Reply by luke s on January 26, 2016 at 5:37am

DID THEY MAKE THE SAME OFFER TO YOU, AND IF THEY DID WHAT DO YOU THINK OF THE AMMENDENT.  I WOULD POST IT, BUT I DO NOT HAVE A COPY AT WORK.  ANYONE OUT THERE HAVE A COPY TO POST

Permalink Reply by Philip Brutz on January 26, 2016 at 6:35am

Yes, please post a copy of the amendment.  I would like to read the exact wording.

Permalink Reply by Barry D on January 26, 2016 at 6:05am

searcherone,

I am not sure, but I believe bankruptcy trustees have a great deal of latitude. That's one of the questions I would want to have answered.

Yes, the land people log contacts, glad you pointed that out. So it is critical that landowners who are contacted start and keep their own log of dates and times plus the content of the contact - what was said by them etc.

Permalink Reply by searcherone on January 26, 2016 at 7:34am

The other selling point to those with large acreage which is not me is it will save them on taxes if they are paid yearly.

I am wondering if it is two separate amendments, one for the SEOLA group and one for others, because the SEOLA lease is very lengthy.

And what do I think of it:   why does a company want to spend money way before the lease expires when their cash flow is poor.   I told the landwoman I did not want the income in 2016 and she was willing to try to have the payment done in 2015.

and Eclipse has spent lots of time, money and energy regarding the drilling in Wayne National Forest.

at this point I am on hold. . .I haven't said no or yes

Permalink Reply by Olive Sue on January 26, 2016 at 1:04pm

Think about this, if I were the company selling and could say to a potential buyer, instead of 18 months on an existing lease I have secured an additional 5 years for a total of 6 1/2 years for you to drill and you only need pay on an annual basis.  In my thinking that sounds like a much more saleable deal. 

I do have a point to make, if you are part of the SEOLA or Eastern Monroe group there may be in your clause "Force Majeure" a limitation of 24 months, however that tried in the courts could turn out to be anything.

Searcherone ,we do continue the soap opera...........

Permalink Reply by Fast on January 27, 2016 at 1:56am
I have a SEOLA lease. The lawyers held a meeting for this group to advise. If I recall the email stated
By simply signing the extension it could possibly change the terms of the lease. I did not attend the meeting because I have no interest to resign, however, I found the feedback from the meeting interesting.
Apparently the landowners who attended the meeting were complaining of all the deductions the oil & gas company took from each check.
Permalink Reply by luke s on January 27, 2016 at 2:33am

MY LEASE IS BASED OFF THE SEOLA LEASE, BUT I DID NOT SIGN WITH JENNIFER GARRISON.  IN A ONE ONE MEETING WITH HER SHE WAS LESS THAN TRUTHFUL WITH ME SO I DECIDED TO SIGN SEPARATELY USING THEIR LEASE AS A TEMPLATE.  WHAT IN THE LEASE COULD POSSIBLY CHANGE AS YOU SAY IF YOU DO NOT MIND ME ASKING?  ALSO, NOT TO PRY TOO MUCH, BUT WHAT IS YOUR REASONING FOR NOT SIGNING THE AMMENDENT?  MY WORRY IS THAT THEY DO NOT PICK UP MY LEASE AS THEY ARE THREATENING TO DO TO SOME LANDOWNERS, AND EITHER THEM OR ANOTHER COMPANY COMES BACK TO SIGN ME AT LESSER TERMS THAN I HAVE NOW.

Permalink Reply by Fast on January 27, 2016 at 2:59am
Luke,
I'm can't answer why it could change the terms of the original lease because I did not go to the meeting. My guess it would be like any other legal document. If the wording is not correct, it could mean trouble. As far as the reason for not resigning? Just not interested. I would like to wait to see what the future holds. No need to sign up for the unknown.
Permalink Reply by luke s on January 27, 2016 at 3:28am

HERE IS THE COPY OF THE AMENDENT

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