Leasing Issues

New!

Disclosure of Mineral Lease in Real Estate Transactions  real estate disclosure form 2016

Terminating a Lease

• ADVICE ON HOW TO TERMINATE A LEASE  http://wp.me/pJm45-2GP

• TEMPLATE FOR DEALING WITH GAS COMPANIES UPON EXPIRATION OF YOUR GAS LEASE PREPARED BY AN EXPERIENCED ENVIRONMENTAL ATTORNEY WORKING WITH GDACC

• Word doc.

• pdf file

• Letter to gas companies claiming Force Majeure as a reason to arbitraily extend gas leases.  Word doc. Why Force Majeure claims are invalid  Word doc

• 2012 Letters from Chesapeake claiming Force Majeure

  • Some people with Chesapeake leases have received a letter from Chesapeake dated after November 15, 2012 that claims the lease is extended until December 31, 2013 by force majeure based on the NYS DEC on-going environmental review.  The November 15, 2012 court decision threw out such force majeure claims. The claim of extension until December 31, 2013 is based on an erroneous interpretation of the agreement between the NYS Attorney General and Chesapeake.  According to the AG’s office, the agreement “only addresses the fact that they [Chesapeake] will not use the environmental review as a basis to extend any leases past the end of” 2013.  It does not extend leases until that date.

  • We need to know if you got such a letter from Chesapeake so we can pursue appropriate action.  Please send an email to fleasedny@gmail.com, and cc Renostry1@gmail.com if you have received a force majeure letter after November 15, 2012. 

  •  Thanks,Ren Ostry, Project Assistant; Renostry1@gmail.com, 973-986-5259  PS – Fleased is now on Facebook!

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• Coming Soon! What to do if your lease or a fraction of your lease has been sold to another company

• Residents With Expiring Leases Fight Extensions–Cortland Standard Feb. 22, 2011
• Landowners dispute gas lease extensions Cortland Standard. May 18, 2011  Image

• Directory of Gas Companies from Tioga Landowners’ Group with link to Penn State directory
• Superior Court Interprets Oil and Gas Lease in Favor of Landowners – Schnader Harrison Segal & Lewis LLP – 03/03/2011, Energy Law, Oil, Gas & Electricity.
  

• 2006 New York Code – New York Law: General Obligations: Requirements For Effectiveness Or Enforceability Of Modification Or Discharge: Forfeiture And Cancellation Of Oil, Gas Or Mineral Land Leases :: Justia — US Laws, Codes, Statutes & Cases — Justia.
• How to Terminate a Gas Land Lease in New York State
• 2006 New York Code – Forfeiture And Cancellation Of Oil, Gas Or Mineral Land Leases

• Q&A on the Termination Process
  • Q.   What if the Company does not reply to your request?
  • A.   My advice is to wait 30 days after the expiration and then send them a demand letter and Notice, under 15-304 (2) (a).   they can then file an affidavit claiming the lease is still valid (2) (c), but if they do nothing in 30 more days, the land owner files the Notice and Affidavit of Service with the county clerk and under (2)d):  ‘BY SUCH FILING THE LEASE SHALL BE CANCELLED AND OF NO FURTHER EFFECT.”
    I have these forms drafted, along with instructions, but need to finalize them on Saturday. joe

  Q. Do I have this correct – all this talk about terminating a lease depends on doing these steps AFTER the lease expires?

• A. That is correct, as I think doing anything before the expiration is kicking a sleeping dog and should be avoided.   The first section f 15-304 mandates that they file a send a recordable release document in 30 days of the lease termination.   I have yet to see one of those, but I think it safest to wait this 30 day period out and then send the demand letter with Notice.  joe

• • b) what if the orig lease is not on file (doesn’t have to be; can be just a NOI or could be nothing: per my lease lawyer consultant)?

News Coverage:

• Hydrofracking Leases Subject of Regrets in New York – NYTimes.com. 9/23/11 – Coverage of GDACC Lease Termination Workshop in Lafayette. 9/19/11

• Cortland Standard Coverage on Feb. 28, 2011 meeting on terminating leases and Force Majeure

 Compulsory Integration

• • Compulsory Integration in New York*Wm. C. Fischer with James Northrup 2011

• Compulsory Integration. Chenango Drilling Opposition Group CDOG Document
• Forced Pooling still an issue in Pennsylvania. By Elizabeth Skrapits (TIMES-SHAMROCK WRITER). Published: October 12, 2010
• PA considers “pooling” legislation similar to NY’s compulsory integration Aug. 2010
• Peter Mantius.  Marcellus Shale: the Real Price of Compulsory Integration in New York.  Dec. 7, 2010.  http://www.dcbureau.org/201012071284/Natural-Resources-News-Service/marcellus-shale-the-real-price-of-compulsory-integration-in-new-york.html
• Land Stewards of NY  Organization seeking to repeal NY Compulsory Integration legislation www.LandStewardsof NY.org
• Lebanon Township Resolution to Repeal Compulsory Integration   https://gdacc.files.wordpress.com/2011/04/lebanonnaturalgasreformres1april2011.doc
• 2005 NYS Law on Compulsory Integration
• Tom Corbett, Governor of Pennsylvania:   Corbett is opposed to “forced pooling,” a practice that would give the Marcellus Shale gas well industry the right to drill under and take gas from a property owner who has not signed a lease to sell the gas.Speaking at the K&L Gates’ fourth annual Appalachian Basin Oil and Gas Seminar in Green Tree on Tuesday, Mr. Corbett said the required pooling of gas drilling rights, which has been a prominent part of the drilling industry’s wish list and occurs in several other gas-producing states, amounts to the use of eminent domain for private interests.”It’s private eminent domain. I don’t think that’s right,” Mr. Corbett said in his keynote speech to about 400 people at the daylong seminar. “I was made aware that it’s on the industry’s wish list, but I don’t agree. If I see a bill that contains forced pooling, I won’t sign it.”(April 27, 2011  http://www.post-gazette.com/pg/11117/1142127-503-0.stm?cmpid=news.xml)(note:   New York State approved the use of “eminent domain for private interests”  in 2005 with the passage of the Compulsory Integration laws.)

Leasing Public Land

• DEC voices concerns over possible Broome County natural gas lease. By Jon Campbell •jcampbell1@gannett.com • November 11, 2010, 9:06 pm
  http://www.pressconnects.com/article/20101111/NEWS01/11110427/DEC-voices-concerns-over-Broome-County-natural-gas-lease-review

Split Estate  (Separation of Surface and Mineral Rights)

• Question? “When you purchase or lease subsoil rights, that gives you lots of access rights on the surface, no?”
• Answer: This depends on whether the original owner had a lease with the gas company or whether the new purchaser is inheriting a lease that is still in force–and if so, whether it included any restrictions on surface use and was at all protective in terms of location of infrastructure, road location, water withdrawals, chemical storage, reclamation, etc. etc.If the gas company purchases the property outright and the property was never subject to a lease, and the minerals and surface are joint (no split estate), then it’s a free for all except for any restrictions (like minimal setbacks from buildings and streams) that are in state regulations. Same if the property owner fails to have a protective lease that restricts surface use/impacts.So it’s important that realtors and prospective buyers don’t just ask “is it leased for gas?” but also “what kind of lease is on this property?” and “is the company be willing to enter into a protective lease before development occurs?” One can believe that no lease is a good lease, but when it comes to actual surface impacts and effects on the landowner (and the landowner’s/purchaser’s ability to hold the company liable), then having a restrictive, protective lease can make a big difference.Nadia
  === EARTHWORKS:  Protecting Communities and the EnvironmentNadia Steinzor
  Marcellus Shale Regional Organizer
  315-677-4111
  nsteinzor@earthworksaction.org
  skype: nsteinzor
  twitter: earthworksrocks

• GET THE ANSWERS BEFORE SIGNING A LEASE REV 3

  IF YOU SIGNED A GAS LEASE… Read the things-to-know list by Harry Levine, president of the Otsego Land Trust and Advocates for Springfield. He credits the list to Glenn Williams, who in turn credits Linda Adams and Lisa Wright. Published on the Freeman’s Journal, December 11, 2009. http://thefreemansjournal.com/2009/12/perspectives_11.html ===============================================

  • Gas Leasing Brochure
  • Chenango County Farm Bureau Website on Leasing Issues with documents to control various aspects of the seismic testing and leasing process.
  • Truth About Leasing Brochure
  • Leasing State Forest Land
  • Not your grandfather’s gas well
  • GDACC Who Benefits and Who Loses Brochure
  • Response to Force Majeure letter
  • Interpretation of Force Majeure Jan. 2011 Jane Welsh, P.C.
  • Federal judge lets fraud claim stand in suit against gas driller Cabot
  • FLEASED letter to AG Cuomo claiming fraud in NY leases
  • Leasing Information from Tioga Landowners’ Group
  • Natural gas lease on your property? Unnatural Gas. org  Resources for Lessors