Pa - Oil, Gas, Mineral Rights

[Mike Kennedy]

Landowners thought the royalty checks were going to make them rich - then...........the Checks arrived -
http://www.charlotteobserver.com/news/business/national-business/article191732109.html

 

[Terrel L. Shields]

When these plays start lawyers don't know enough oil & gas law to protect their clients. Chesapeake is by far the worst offender but all ogl's favor the oil company. Dozens of suits have resulted and groups like the National Association of Royalty Owners (NARO) has been proactive trying to get protective legislation on the books. Check PA's Facebook page, NARO Pennsylvania.

 

[KHS445]

Right you are Terrel. I remember when the Niagaran Reef play started ramping up in Michigan back in the early 70's. Shell Oil was the biggest player and had landmen running all over the place. Despite required drilling units of 80 acres, Shell's lease covered all of a persons land and tied it up if any portion of their property was included in a production unit. So an acre or two that was included in a unit would tie up hundreds of acres located 5 to 20 miles away. If someone else wanted to develop the other land they had to get release or had to purchase the rights from Shell.

It was a wild time to be in banking. Had to learn a whole new language and understand that in the oil field a 120 day old account receivable/payable was considered current. I remember landmen, drillers and well service companies having phones installed in the corner of bars because things were happening so fast they didn't have time to setup offices. Everyone in the oil field worked hard and played hard. Not really sure when anyone slept, mostly they passed out and started all over again when they woke up. Saw fortunes made and lost.