Production lease modification

dmmsj,One can still hope that someone buys the lease for the well. it has happened twice to me, remember the Ocfords wells that was started by Noble and now are being finished by Antero, also, I at one time had a lease for 20 acres in Grant by EQT that all of a sudden Antero had it, no notification by either party. so there is hope, slim but always a possibility.

You’re right-- there are ways to disrupt their “perpetual” claims, such as selling our interests, something we may consider. Isn’t it a shame that we have to have lawyers like lions just to get our fair share?

They have a lot of lobbyists and give a lot of campaign money to the local WV legislators so the laws favor the companies.

Believe it or not, Mississippi is worse. When an oil company wanted a well right in front of an antebellum mansion, there were a lot of protests, but somehow (money), they got permission. And, our pooling law only requires 33% agreement. Further, the oil/gas rights on our 16th section lands were leased on 100 year leases for a few dollars (literally, like $10) to political insiders some years ago.

That is REALLY BAD. It makes WV look very generous.

WOW. Just when we thought we hammered out the conditions for the pooling agreement our land guy gets a promotion and they give it to a new guy. The new guy mails out the packets without the negotiated terms. I warn everyone not to sign. The original guy Bryan emailed me that Daniel forgot to include the addendum and new ones would be coming. Daniel was copied on the email Bryan sent. After Daniel called my 89 year old aunt and offered to drive right over and notarize her contract that was incomplete, I called him. He acted like he had no idea about any negotiated terms. I told him he was copied on the email from Bryan and he says, “oh, you’re that Beth”. Not sure any of us want to work with Daniel. I’ll be calling Bryan today…

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More news on Ritchie County. We are now on our third land man with Antero. They say there were massive layoffs in December and they had 40% cuts. We finally got our deal negotiated on the modifications. I insisted they change the royalty language as well as adding other clauses. The royalties clause said paid per the laws of West Virginia. Well I happen to know that EQT is suing to overturn the 1982 law that states royalties on new wells on old flat rate leases were to be paid 1/8 royalties. They rewrote the offer again and stated 12.5% royalties on all production. The family members that prepared for this and had their heirship/wills filed in the county five years ago in anticipation of this have received their offers. That’s only about 40 of 120 heirs, lol. I negotiated the general terms but each individual is able to negotiate for themselves. The permits for our wells were issued February 1.

Beth:

Excuse me for being ignorant on this matter, but this is all new to me. Back In Jan of this year I got a letter from Antero regarding a modification to a lease, but forgot about it. Just last Saturday I got another letter requesting me to sign a modification. Your post sounds like we may be dealing with the same tract. The original agreement was signed by my Gr Gr grandmother, A Hogue, on Mar 1 1907, also a 90 acre tract in Clay Dist, Ritchie County WV.

Yes it is. I’m a descendant of her daughter Mary Hogue Elliott

Thank you for replying. The “offer” I received was for my signature and tax info was a flat fee of $500.00. To me that comes out to $5.55 per acre. (seems like a real bargain for them) Other than that in the body the the amendment where it states in consideration for the sum of $1.00, the lease would be amended to “pooling”, which means nothing to me. I have tried to contact the number listed, but have received no answer. Should I hold out for a higher “signing bonus” and make them stipulate a royalty of 12.5% that you referred to in Feb?

Hi Beth, I have two friends who have interest in one or another of those Hogue tracts. They are near a couple of tracts that I have interest in, so I looked them up. If you (or anyone else) wants a copy of the document I prepared to help sort this out, send me a friend request.

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Hedge, you are only a small part of the 90 acres. My mother (84yrs old) is a 1/56th of 12.8 acres of the 90. So your share, depending on your genealogy may be quite small. I have a copy of Almarine’s will dividing the 90 acres between 8 of her children. My mother signed the modification for $500 and 12.5%. Many cousins signed for $200. Their shares were like 1/168, depending on wills and number of siblings. Hope this helps.

Beth and Hedge…Nancy and I have been working with the Dotson interest in that area. (Lucy and Russ Dotsons grandkids.). There grandmother was Lucy Elliot and her mother was Mary Hogue Elliot. I believe they received a modification on a 90 acre tract also. Probably the same one. Sounds like there should be a family reunion from all this.

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Not sure how to friend you on this. I would be interested.

Beth: Thank you. Your clarification and insight to what others have signed for does help.

I know the Hogues do one each summer. The families are very intertwined. My grandmother was a Dotson, grandfather an Elliott and I think Lucy was an Elliott? I have to check my Ancestry. The elliott’s Have a reunion each summer too. It is mostly attended by Shirley Elliott descendants but cousins from his siblings attend too.

I agree on the family reunion part

I sent the link to Russ Dotson Jr. He may join in.

Drilling is set to start in a month or so according to my contact.

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Yep. I’ve spoken to Russ junior. He negotiated a different deal. Definitely great aunt Lucy. I believe Russ is in Florida.