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Energy Industry (Oil & Gas)/New company wants well pad on current lease?


my Club owns ground in Delmar township in so.east tioga county Pa. We have been leased by Shell for almost
ten years . No pads,wells or pipe lines were ever installed on our property. ( there are two Shell wells about one mile from our property). Our Shell lease will expire in 3 months. We have not heard from Shell about them extending our lease. We have been asked by a Well Pad development company to sign an Affidavit of non-production so they can install a well pad on our property. Shell does not know anything about this. This pad developer is being vague about who they are working for. Please advise. And Thank You

I would wait until the lease expires, then if the new company wants to put a well pad on your property you won't need to bother with the affidavit they requested. You could also attempt to obtain a new oil and gas lease with them (with a suitable signing bonus, good terms etc. and no more than a five-year primary term), before allowing them to do anything with the land. Perhaps they won't be so vague about their intentions once the current lease expires. A well pad without a lease sounds like an odd request to me. Did they offer you any money to put the well pad in? If not, I'd be even more wary about just letting them do that.

Hope this helps you out.
Frederick M. "Mick" Scott CMM, RPL
The Mineral Hub  

Energy Industry (Oil & Gas)

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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written articles of interest to mineral rights owners which have appeared in various industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and land and title work over the past ten years, and have also worked as a professional landman. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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