I have been doing a little research and speaking with friends and neighbors about forming a group to address the needs of those of us not yet represented by a landowners group.
This led me to call ALOV after hearing that they had accepted some acreage in Trumbull county.
I paid little attention to ALOV earlier as their website did not list Trumbull county as an area of interest, although the work they were doing was certainly of great interest to me.
From what i gather there was a cut-off of June 30 for sign-up with ALOV, they extended that and also had a meeting at RD banks Chevy in Champion. This may not be news to some of you, but i had not come across the posting until after. The word i got from an individual at ALOV was that Chesapeake set a northern geographical cut-off in Trumbull county of St.Rt.88, again this may not be a newsworthy flash to some. Many landowners attended, more than expected according again to a source at ALOV, and signed up their acreage.
Now heres the news, ALOV has agreed to start a "Waiting List" of still more interested parties from areas north of St.Rt.88. If you call them with name, address and phone number they will put you on the list, and depending on level of interest, they may choose to represent us as a group in a similiar fashion, with the same or even better terms to Chesapeake, or another interested party.
So call up ALOV, their number is listed on their site www.alov.us , and ask to be included in their next go around. From where i stand why re-invent the wheel, they already have done the groundwork and have the attention of the industry on favorable terms, lets ask them to either start another "Pool" to include us, or come work with us to the same end.
If you have information to share, please join in the discussion, Thanks
Hello again to all my fellow Utica Shale Owners. I Just stopped in to ask if there were any who signed with BP from the ALOV Northern Trumbull county group, that resulted from these efforts, still around.
Has anyone had any conversations/correspondence from BP concerning title defects, or other issues that would delay payment or affect your lease, or gotten a check for Bonus money?
First, I doubt what you said is true.
Second, Im happy with the lease I got from BP. Its money I didnt have in the first place and why be greedy. End Of Story....................
At this point in time, I would be happy to just receive my money! But you are right....this bonus money is like a gift from above. Sure, more money would have been nice, there isn't a person who signed who wouldn't say that they would have liked to have gotten more money. But the money (when received) will be a godsend to me at the farm.
For some people, the bonus money may be the only money they see. The real gift is the royalties only if you're part of a drilling unit and it is successful. The soonest someone would receive royalties probably wouldn't be until late 2013 or 2014 once you consider the time it takes to prep a site, drill a well, frack it and get the product(s) to market. Look at the Consol well as an example in Vienna. When I drove by last week, the well hadn't been drilled yet. Earlier this year everyone thought we would have an idea how good it would be by the summer, but nothing to show for it yet.
Each person needs to look at their financial needs and see what makes the most sense for their situation.
Did I say that it didn't have deductions for the royalty? My comment was directed at your VERY precise claim of "Your lease allows them to deduct up to $50 per acre per month from your royalty."
My response was that your statement was not true. Landowners can wait, that is there decision but just because other counties get higher bonus payments doesn't mean that holds true across the board, again....not all counties are created equal in regards to petroleum reserves. If you don't believe me...ask Dallas County.
It has nothing to do with Kool Aid...its geology, plain and simple.
No where in the BP lease does it state that they will or are able to deduct $50 per acre per month. It does state they may deduct " post-gathering logistical charges ". We all knew this when we signed. Mahoning county was getting more money and better royalties even before the Trumbull Alov group signed with BP.
Each and every person has their own reasons for signing the BP lease. Mine so happened to be that the offer was slightly higher than what was being offered at the time (and still being offered in my area). The lease also includes a lot of language absent from other leases. That was the trade off, language for royalties.
To say that 2,000 people where uniformed and suckered is just plain ignorance of what is going on.
I never thought we got the best deal but I have always thought we got a good deal.
I have to ask. I couldn't resist getting involved in this little spat. Did you just make up the $50 per acre per month charge, as you stated in your reply to Debby this morning, to get someone to admit the BP lease allows deductions knowing that the lease doesn't specifically say anything about a $50 charge? Those that were at the meeting in March, when specific points of the lease were pointed out such as the royalty deductions, already knew this. If that's all you wanted someone to say, I would have mentioned that in our previous discussions. The attorney spent time going over the deductions and also how the price of the oil/gas would be calculated. Other leases I've seen that offer gross royalties are silent to how the initial price of the oil/gas will be determined, so a company could play games with how the gross amount is determined by selling the product to a related company in order to keep the price down.
I know you post a lot of good information just like some of the other regular posters on this site, but I'm curious why you felt the need to call everyone who signed with BP a sucker? If you're trying to get people to explore other options you're promoting does it make good business sense to call potential customers "suckers"? You said last week that you're following this post. What's the interest if you're not signed with BP and you don't like the ALOV lease?
If you're trying to get people to explore other options you're promoting does it make good business sense to call potential customers "suckers"? You said last week that you're following this post. What's the interest if you're not signed with BP and you don't like the ALOV lease?
I wouldn't mind knowing the answer to those questions either...
Fair enough. No hard feelings. Not to belabor the point, but aren't people fairing better this time around since most old lease royalties were set at 12.5%, whereas now they are mostly in the 17.5% range? Not to mention people are receiving upfront lease money per acre that wasn't provided in some of the old clinton well leases? I agree that people have been taken advantage of in some cases, but overall most landowners will be receiving a nice pay day no matter if they signed with BP, Hilcorp, Halcon, etc.
I know you're just trying to look out for people's best interest and we appreciate that. Most of us don't have the experience like you do and it is always good to hear from those who have been there before. You have made some good points throughout this and other posts and it definitely makes me wonder if the ALOV group could have done better and whether they should have broke up the group into different sections of the county in order to achieve a higher price.
One thing I would point out, that you may not have know, is the attorney spoke for about 30 to 40 minutes when the ALOV had their big meeting back in March going through the specific details of the lease. I'm sure most of the people posting here were at that meeting and made aware of the various provisions you have commented on such as when BP has to pay us and what deductions would be charged against our royalty payments. This was discussed at length by the attorney before people gave their final vote so the majority of the people would have known. Although, some may have went out that night and "celebrated" once they realized how much upfront money they were going to get and forgot what was discussed in detail about the lease.
I think we all know about your lease by now and that it is a royalty without deductions. I assume you have changed your lease from earlier this year to state how SIF or Halcon will actually calculate the price for the oil & gas extracted because the copy I have is silent from that perspective. If it doesn, then we would have a comparable starting point between your lease and ALOV's since their lease addresses how BP will calculate the gross price before the deductions are factored in.