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Need some advice about a gas lease offer.

Need some advice about a gas lease offer.

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  #1  
Old 03-02-12, 04:22 PM
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Join Date: Jan 2005
Location: Pennsylvania
Posts: 304
Need some advice about a gas lease offer.

Hello, I live in an area of Pennsylvania that is being drilled heavily for gas. I bought my house approx. 10 years ago with a clear deed. I bought deed insurance for like $1,000 back then. I signed a gas lease with Chesapeake Energy for $2,000 an acre only to find out 3 months later that my gas,oil, and minerals were owned by the orginal owner from 1972! She had kept all the rights before selling. I have 4 acres so I got $10,000. Chesapeake Energy called me and wanted their money back since I supposedely don't own the rights to the gas and mineral rights. I got a lawyer that contacted Chesapeake back then and haven't heard anything from them until yesterday when I got an offer from them to extend my lease for an additional 2 years for $2,000! lol I'd have to say someone messed up again! Should I sign the contract extention and take the $2,000 and see what happens or ? Some say sign it and I say," I'm not too sure". Should I contact my lawyer for his advice or ? Thanks as always! Jack
 
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  #2  
Old 03-02-12, 04:26 PM
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Definitely contact your lawyer. Not sure how a PO could keep mineral rights when selling. It shows someone wasn't doing their job with a title search, which I am sure you paid for. Let your lawyer know about that, too.
 
  #3  
Old 03-02-12, 06:50 PM
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Join Date: Feb 2012
Location: United States
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don't get greedy

Not an attorney but ran the land department for a major Gas Company for several years. It was not uncommon to have two or more owners of various vertical property zones on the same property. Saddly, most people don't read the details until its too late and if you think your title search is going to jump up and down to inform you - they don't. In fact, unless you pay a good price, they typically do only a 50 year check and don't highlight much of anything. As for your mix-up - don't think that their repeated mistake will not get noticed over time and they may again come after you for the money plus attorney costs to recover it. The probable reason they simply left before is because it will cost them more to take you to court than you owed them. But don't make the mistake that this will always be the case. We surprised more people on round two than I care to mention! I would suggest ignoring their offer and let things go - otherwise you may simply turn the old stone back over and not get so lucky this time.
 
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