Replies to This Discussion

Permalink Reply by craig on February 4, 2012 at 8:53pm

Hi Lou,

You are right in that there isn't much discussion activity in the this group. I believe the reason being that a lot of us have been under lease for sometime now and many are ambivalent to the local situation. The fact is that lots of acreage that is leased is starting to expire this year and into next for most. CHK (Chesapeakes stock symbol, of which i wouldn't buy btw) absolutely knows this and will drill as fast as they can to hold these leases by production. Which they are currently having to do because of no real infrastructure in place. This means that there will be more and more folks from Beaver County finding this website in the coming months. 

Have you signed a lease yet? If not, be very very smart before you sign. Understand what all the legal talk really means. Having an attorney is a good thing, however beware that not very many of them actually have much experience in this area and they make mistakes, sometimes big ones. If nothing else believe me when I tell you, do yourself a favor and don't believe or take for gospel anything that anyone from the industry including landmen tell you verbally. Most landmen are good folks, but there have been times in my family's dealings that what they explained something to be was only partially true. Words have no value to a lease, only the language of the lease counts. I guess the best way to say it is that they don't necessarily lie to you, they just don't tell you the whole truth and possibly they don't even know the truth themselves...only what they were told by the driller who hired them.

I will try and post in the near future what I actually know for sure for The Thompson  and Rolling Acres wells both of which are nearby me. If I get too busy and forget, send me a friend request and we can join up and go from there. 

If you need the BC recorder of deeds website link or a link to Pa DEPs public site, or PA DCNR let me know.

Have a good one. 

Permalink Reply by Allen on February 7, 2012 at 8:26pm

My property is located on the eastern border of Dawson Ridge in Brighton Twp about 3/4 mile north of the future Jenkins A/B site. Last week I was approached by a landsman for Mason Dixon and he wanted me to sign a lease within a week. There are a lot of leases to the west on small but contiguous parcels within the proposed drilling/production unit.  I was wondering if I should wait to sign until  the Jenkins site begins development after the Twp gets it's zoning change voted in. 

Maybe the playing field will be more level by then.    

Permalink Reply by craig on February 8, 2012 at 1:30pm

Allen,

Mason/Dixon folks are going to do only what they are told to do. You will not be able to negotiate very much with them. They will have to take your requests to their boss and probably to CHK. I would never sign anything just because of something a landman tells you. Remember NOTHING a landman says can be used legally, only the document you sign represents the agreement between you and the gas co. 

If you are going to sign a few things to get:

1- $3,000/acre minimum

2-17% minimum royalty

3-Gross royalties, no deductions....I don't know if this is even possible anymore.

These are all things that I had them agree to before signing my last lease this past fall.

Of course there is a list of addendums you need as well, that I won't go into here.

Find a gas lawyer or educate yourself and sign nothing quickly.

IF they really want you to sign bad, they will make it happen but not without a ton of foot dragging.

Permalink Reply by Allen on February 8, 2012 at 2:23pm

Your'e right craig, however with zero development to date and absolutely no infrastructure there is little hope to break in at 3k and 17% like in Chippewa. It almost seems that Chesapeake is simply using it's little toe to test the water in Brighton. They did pave over the only access road at the get go and a poor job at that.  Next week we will vote on changing the zoning at Jenkins so the pad can be laid but I'm doubtful that there will be any production for a couple years and perhaps the price of gas will plummet much further. There are daily reports of engineering firms driving at a snail's pace down the only assess road (Neville Road) but there is little to report on a planned gathering line to the well sites in Ohioville and the main gas transmission line is miles away. Not holding my breath, just curious if any development in Brighton Twp will start before all these leases start to expire.     https://www.npms.phmsa.dot.gov/PublicViewer/composite.jsf

Permalink Reply by craig on February 8, 2012 at 3:14pm

There are lots in the works as far as the gathering system goes. They are getting some hard times from a few folks ( rightly so in my opinion, but that is another story) that are more or less crucial in their plans. From all the folks i know in South Beaver and Chippewa I can say that they probably have 90% or so of the rightaways needed already on board with letters of intent. They have been looking at 40+ acres to buy in the Thompson well vicinity to build the compressor/treater station as well.

Also, you do know that the Thompson well is hooked up to a 30" line not 500 feet from the well pad.

I believe it is coming down to crunch time for the gathering system, etc. CHK needs to get moving on it and they know it.

You are right in the fact that there will be very little production for at least a year or two. They are drilling to lock the leases up with HBP. But once they do that they will be under the gun abit to get them producing in a reasonable time frame. The gas co's want return on investment in a timely matter. I believe the infrastructure will be built out quicker than we think.

I do believe they have multiple permits either approved or in the process of being approved in Brighton Twp...no time to go check again now.

Permalink Reply by lou alaksin on February 12, 2012 at 2:02pm

STATELINE RESOURCES WELL.        This is a new permit in Columbiana Co. OH by chk.     Location coordinates are:  40.778430, -80.525774.       This is about half mile inside oh   off pa 251/oh 154   near pa gameland 285 in so. beaver.     This well status is being updated in col. co. gomarcellus forum.       Interesting to see if the well hits wet gas when drilled.

Permalink Reply by craig on February 13, 2012 at 10:32am

Thanks for posting this Lou, I don't have enough time to check on Ohio, as well as Pa.

Permalink Reply by Robin Hood on February 14, 2012 at 7:43pm

This well isn't far from the Thompson well as the crow flies. Even though they only announced gas, Chesapeake may have kept to themselves what else they found. As I understand it the press release in Sept. was to attract investors.

There is alot of permit activity in Eastern Columbiana County recently.

Permalink Reply by Melissa on February 15, 2012 at 9:56am

Yes...will be interesting.   It has been fairly quiet in this area until now.

 

Permalink Reply by Allen on February 13, 2012 at 9:47pm

Brighton Twp Pa update: I had a meeting with my landsman, he changed my lease to 15% so I decided to sign, take the money and run. Tonight 2/13, I sat in on the Brighton Twp supervisor's meeting - it was announced that the proposed Jenkins well will be drilled into the utica shale.

Permalink Reply by lou alaksin on February 14, 2012 at 4:39pm

Thanks for the update.    If you can, please continue to post news about this well here.    For those who haven't checked the pa dep site recently for permits granted, the map coordinates for this well are 40.687638,   -80.403027.

Permalink Reply by lou alaksin on February 14, 2012 at 6:52pm

STATUS - Big Beaver chk well bv27 - CREES or Wall property (wetlands problem may force location change).       A public meeting was held yesterday at homewood vfd for residents of big beaver, homewood, and koppel who might be interested in leasing their property.      Chk had 3 landmen at the meeting.     Maps of the area were shown  including a plat map of bv27 which included 6 wells from the pad.    The chk reps said this well should be spudded between june and august.     I had my water tested a few weeks ago.    Pa dep does not have a permit listed for this well as of today.     The reps said chk has 3 drilling rigs in the area now and are going to add 2 more this year.    Since chk had announced last month that it was cutting back on leasing and development nationwide in dry gas areas and shifting activity to wet gas areas, I guess that means wells in the area which are drilled have been producing wet gas.    Anyone have verification of this?

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