Replies to This Discussion

Permalink Reply by Todd Charles on March 3, 2011 at 8:03pm

Hello, Daniel, and welcome.

Your landman or someone from Chesapeake Appalachia should probably be communicating with you, but your notice of entry should mean that they are either entering and drawing your gas underground - or they intend to enter your property and drill.  Which means, either way, they may start paying you for your gas - at whatever rate and terms you signed for - soon.

You should get out your lease and contact your landman or company and just ask them to explain to you what the "NOTICE OF ENTRY" means to you, and whether or not you are in a 640 acre block unit.  When in doubt, it never hurts to ask.

Sincerely, Todd's mom, Kit McGlinchey 

Permalink Reply by Daniel Morris on March 4, 2011 at 4:39am

Thanks for the get-back.

According to the notice they are interested in "drilling a well or wells," and propose a well pad and access road that would include approximately 10 acres (seems large since a large pad is usually 5 acres).

 

The statement also includes "This is only a preliminary visit to determine feasibility. If and when Chesapeake desires to pursue the project, a field representative will contact you to schedule a meeting."

 

I assume their interest in this means they have the block and want to drill---but with these guys you never know. Since they  have had access to the land for about 3 or 4 years and have done seismic surveys, they must know where they want to drill.

 

Do  you know anything about compensation for the surface disturbance?

 

FYI: I visited the Edwin Bunner Well that is about a mile and a half from the property. They are a-drillin'

They rebuilt and widened about a mile of road to get to the site.

 

I'll keep you posted as things progress

Permalink Reply by Todd Charles on March 7, 2011 at 3:13am

Hi, Daniel,

The O&G companies pretty much operate in their own time, rather than ours, but it sounds like your place could be the next one drilled.

As to compensation for your surface, you will hear all manner of figures. They will try to pay you as little as they did for your "signing bonus" - but now you are more in the know, and if they haven't already included the price they will pay you for disturbance, then you want to negotiate that price with them. Usually it is the same , per acre, as your signing bonus, but again you may have signed low, so demand a figure that is more in keeping with what they should have paid you. Like $1,200 to $1,500 per acre - for the total number of acres you have - not just the 10 acres they want.

The price in PA is anywhere from $4,500 to $6,500 per disturbed acre - for a pipeline easement - which works out to from $12.00 to $15.00 per foot of pipe.

Stand firm and don't be intimidated.  If you feel anything shady is going on, lawyer up,  and politely tell them that you are.  Sounds like they may have skinned you on the lease, don't let them do it again, they can afford to pay you appropriately for your surface - particularly if they are paying you a low royalty.

And if you are in a 640 acre block unit, you should collect your royalty on every well drilled within that unit. If they horizontally drill, every horizontal leg they extend from the vertical, is considered a seperate well, and you should collect from it. 

Permalink Reply by Daniel Morris on March 7, 2011 at 4:59am

Thanks so much for the information. So far all this has been an education.

I'll keep you posted on any new developments.

Permalink Reply by Dee Fulton on September 7, 2011 at 6:23am

Hi Daniel.  The Wheeling Intelligencer had an article/ad today written by attorney Jeffrey Rokisky entitled "Are You Stuck with a Bad Mineral Rights Lease?"   In some circumstances, such as when it can be demonstrated that your lease is practically worthless, the lease can be legally challenged.  I have no personal acquaintance with Rokisky and cannot vouch for his legal capabilities.  But he provided his email in the article and you may consider a consult.    rrokisky@rokiskylaw.com

Best wishes, Dee 

Editor, FrackCheckWV.net

Permalink Reply by Dee Fulton on September 7, 2011 at 10:08am

Also see this Sept. 6 WTRF story:  Authorities Discuss Surface Owners Rights