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HBP

April 3, 2012
Times Leader

Dear Editor,

First, I am glad that finally the economy looks like it will be taking a turn with the incoming gas and oil companies and bonus payments that have come with it.

I am glad for anyone who benefited from this. But one group of landowners bypassed because of the (HBP) regardless of the amount of income paid to you and some are pretty meager.

What has happened with the HBP is that your gas and oil company has assigned or sold all of the portions of your lease to one of the big gas players and they have collected the Bonus Payment. Consider the amount of money that has bypassed you. You will probably be paid the 12 1/2 percent royalty and guess who gets the difference of that 20 percent? I have no problem with the gas and oil companies exploring or drilling into the Clinton Formation as that is what they paid you, $5 or $10 per acre and you were paid for nothing more than that.

When I was sick in the spring of 2010, a leasing agent approached some of my relatives and leased their ground for $10 per acre and I am sure the company knew what was coming at that time. These older leases don't have anything about horizontal drilling and usually nothing on 640 acre consolidations. It is not right that these leases have been assigned as they were?

I believe at some point, someone will have to come to these landowners for lease changes or modifications. I also know of some of the HBP properties have wells on them that haven't been produced for years and the landowners have not been paid as promised in the lease. This is the delay rental clause in your lease. Maybe this is the time for a class action suit for this group, HBP, to get their fair share of bonus payments and not a lop-sided payment to your gas and oil company.

Thank you.

Bill Host

Bowerston

 
 

 

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