Can someone tell me if there can be more than one lease on the same rights?
My father in law inherited mineral rights on some property in WV and there is already a lease on the property for exploration and drilling to Rhinestreet Formation, and they recently signed a lease with a second company for Marcellus Shale...Is this legal?
Do you have a copy of the first lease? Depending on its wording, it probably is legal.
We do have a copy of the first lease...the ironic thing is it is a 100 year lease until 2065 by Hope Energy, and the new lease proposed by the new company is an addendum to access the Marcellus Shale beneath it...but can they add an addendum to the first lease? And does this automatically give the new company 100 years since it is an addendum to the first?
What county? It would be interesting to see how this lease was assigned. And to see the wording on any assignment of Marcellus rights to the company wanting the amendment. Your father in law should ask for money to sign this. Does he have an oil and gas attorney? It would be worth his time and money to consult one. I am not an attorney but I would think that unless the addendum has wording saying 100 years for the Marcellus, it would be limited to term of 1st lease. Is there a well which he is paid royalty for, on this original lease?
This is located in Barbour County. My father in law will receive a 250.00 'consideration payment' within 90 days after signing. He does not have an attorney we live in Ohio and the property is in WV. There is no well at this time, there was a previous well which piping had collapsed on back in the 80' s and was capped , but nothing has been done with it since then. Also his rights are inherited with 9 others, can he be force pooled if he or others do not sign with Consol Energy , the new one?
Crystal, my advice is not to get in any hurry to sign anything. If they have the legal right to do something already, they don't need your signature and if they don't have the legal right, you have an opportunity to negotiate, an opportunity that should not be passed up. There is no hurry, if they need your signature today, they will still need your signature next month.
At this point, there is no forced pooling in West Virginia. The proponents tried but failed in the recent legislative session. So that is not a problem.
Also, I believe that Consol is a successor of Hope Natural Gas.