Replies to This Discussion

Permalink Reply by Barry D on March 23, 2016 at 3:36am

The purpose of the protest would be...?

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Permalink Reply by Joseph-Ohio on March 23, 2016 at 5:08am

From what I'm reading there's a plethera to choose from.

How about the whole mess in petition form ?

How about getting an affected landowner lawyer to draft up a grievance petition and circulate it for signatures ?

I'm still thinking an Ohio Standardized Long Horizontal Bore Leasehold Agreement would work to eliminate Land / Mineral Owner Abuse.

JMHOs

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Permalink Reply by st. croix on March 23, 2016 at 6:24am

To let him know how happy we are with the theft of our minerals!!

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Permalink Reply by Barry D on March 23, 2016 at 2:32pm

st. croix,

Your time would be better spent working with your state rep and senator on this issue.

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Permalink Reply by Joseph-Ohio on March 23, 2016 at 3:13pm

How about petitioning all of them.

Governor, Attorney General, Representatives, Senators, Chief of the ODNR Oil &/Gas Division.

To me the way to go to preclude Land / Mineral Owner Abuse still would be the route of a standardized Ohio Lease / Sales Agreement for Pooled Acreage Horizontal Bore Gas / Oil Well Developments.

JMHOs

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Permalink Reply by Joseph-Ohio on March 23, 2016 at 3:46pm

I'm reading Pennsylvania is making some progress establishing a minimum 12.5% royalty share for land / mineral owners there.

That's a step in the right direction seems to me.

But still not far enough should you ask me.

JMHOs

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Permalink Reply by Barry D on March 23, 2016 at 3:58pm

Joseph,

A step in the right direction yes, but it may not accomplish the goal the landowners seek.

The way I read the legislation is this - it does not deal with the "theft" committed by the oil and gas companies. through breach of the contractual language in the leases.

All that legislation does is limit the theft. If you have a lease that says you get a 20 % royalty this legislation allows the o&g company to steal 7.5%.

Essentially it codifies the theft.

The true remedy is in the courts, where it must be determined what no deductions means.

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Permalink Reply by Joseph-Ohio on March 24, 2016 at 10:37am

This Following Reply Is Paraphrased From An Earlier Reply That For Some Reason Or Error Has Been Deleted / Removed :

Barry D,

You're taking me out of context.

I hate it when that happens.

You're only addressing a single facet of what appear to be Land Owner / Mineral Owner / Lessor abuses / slights which we are all reading and commenting about on these pages.

I still suggest standardized Ohio Lease / Sales Agreements for modern Pooled Acreage Horizontal Bore Gas / Oil Well Developments to quell the apparent turmoil.

I can understand how even in a 'NO DEDUCTIONS' sort of Leasehold Agreement that a Lessee may consider certain, let's call them EXPENSES / CHARGES (instead of DEDUCTIONS) to be the responsibility of a Lessor to pay - but only if the Leasehold Agreement so specifies - and only if the EXPENSES / CHARGES are shared based on the percentile interest of each entity specified within the Leasehold Agreement - and only if the EXPENSES / CHARGES improve each entity's return from the sale of the production.

A standardized Ohio Lease Agreement for Pooled Acreage Horizontal Bore Gas / Oil Well Developments should always of course include a clearly specified percentile royalty share to be paid to the Lessor (similar to what Pennsylvania is doing as their 'step in the right direction').

A standardized Ohio Lease Agreement for Pooled Acreage Horizontal Bore Gas / Oil Well Developments should be 'STRATA SPECIFIC'.

A standardized Ohio Lease Agreement for Pooled Acreage Horizontal Bore Gas / Oil Well Developments should also include a minimum $ / acre 'Upfront Sign On Bonus' (also sometimes termed 'Upfront Delay Rental Payment') as development, production and therefore start-up and continuing royalty payments are always at the discretion of the Lessee.  This provides compensation for extended periods of time occurring prior to actual well development / production and disallows a Lessor's land being tied up without compensation.

There ought also to be a true 'NO DEDUCTIONS / NO EXPENSES / NO CHARGES' type of standardized Ohio Lease Agreement for Pooled Acreage Horizontal Bore Gas / Oil Well Developments.

Of course the Primary Term and Renewal Basis ought also be clearly specified within any Ohio standard.

Based on what we're all reading here on these pages the Gas & Oil Exploration & Production Industry appears to smack of  racketeering, Land / Mineral Owner Rights abuses / slights, the manufacture of 'legal fodder', ignorant of the real purpose of contracts in general and ending up to be an incredible waste of time and drain on our economy and economic recovery.

All only JMHOs

 

 

 

 

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Permalink Reply by Barry D on March 24, 2016 at 12:51pm

Joseph,

I get it, I understand your position (and I agree).

My point is this - you are dealing with contractual issues here. (lease terms). A legislature can act irresponsibly (my opinion) and pass laws that conflict with and do not address existing contarct law and actual contracts. The laws are worthless.

Again I say that land owners must sue and sue and sue again until a court recognizes the implicit nature of the agreements (leases) signed by these people. In particular the fact that land owners believed that they would receive 100% of the royalty promised to them WITHOUT ANY DEDUCTIONS WHATSOEVER!.

Unfortunately the land owners keep hiring attorneys that are a part of the system and they argue before judges that are a part of the system. The system allows the big O&G companies to introduce BS arguments that applied in Texas and OK etc. The land owner will always lose under this scenario.

We need attorneys to step up that will defend the language of the leases written in OH, WV and PA and how it was understood by land owners in those states.

So much for my rant. Forget legislatures for lease already in effect. But I agree that going forward that the people should protest to everyone in governemnt for legislation that protects landowners ( as you said).

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Permalink Reply by Joseph-Ohio on March 24, 2016 at 10:16pm

Barry D,

So, apparently your solution for concerned Land / Mineral Owners / Lessors and including those of them that appear to be and believe they are being abused / slighted / perhaps stolen from is to continue to use the (your described BS) broken system, and sue and sue and sue and lose and lose and lose ?

That to me would just be (using / coining your BS descriptor) more BS stacked atop the mountain of BS plaguing the Gas & Oil Exploration & Production Industry and especially the  Land / Mineral Owners that appear to be and sense that they are being abused / slighted / stolen from. 

Sorry I see no solution there.

Change to the broken system is the only solution that I see.

Permalink Reply by 0ym9x5ag7ury2 on March 24, 2016 at 8:49am

Barry,

     I emailed the Ohio Senators last year. Turns out they show up on the Chesapeake Energy Political Action Committee fund as taking legal cash. Check it out.

johnny and mike didn't take PAC money. I suspect they are getting more than a few thousand dollars for selling out Ohio Citizens to Chesapeake.

All of our politicians will come crawling back to the people who pay them since Chesapeake has run out of handout money.

Don't forget to vote for any New Names on the ballot if you want something done about our theft. The good old boys have to be voted out.

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Permalink Reply by Joseph-Ohio on March 23, 2016 at 6:34am

Unless there are no affected landowner lawyers to task ?

Why would that be however ?

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