Robert Rae is one of the Board of Directors
I'm not looking to argue (and won't) but I'm just wondering if all you guys knew that China is partnering with Chesapeake and already owns a huge stake in your land?
You know, (I live in a highly leased area) and this whole thing reminds me of the past when the anglo duped the American Indian out of their valuables by trading them trinkets, beads and junk . . . . only now the "trading post" is the local Walmart (do we really need the latest electronic trinket?) .......the only argument here seems to be "how much money am I going to get" . . . . . when to a lot of people this land may be the only thing you got. . . . . . .
Vertical vs horizontal are to different animals. They have drilling into the Marcellus for decades and knew that it declined rapidly also. Horizontal & fracking changed the whole game. The bigger question may be how well the oil will flow through fracked shale. Thats the unknown here. But the Eagle Ford shale in Texas has been producing well for oil. But every shale is different.
I'm guessing that within a couple of years, the energy companies will have figured out the best way to get good oil flow from the fracked Utica. You don't spend a billion and a half on leases unless you are quite confident about what your after.
Let's hope this deal actually works out for the landowners. Chesapeake is notorious for signing contracts with landowners in groups like this. They then, lease and pay for the land they want, and find a way to back out on all the others, leaving the landowners with nothing. Check this site:
Many landowners in the Haynesville Shale were left with nothing after CHK backed out of contracts with them.
Also, landowners should be aware that Chesapeake is the object of large class-action lawsuits that allege they pay their lessors below the going rate for the gas that is drilled. These cases are Vanoven v. Chesapeake and Coffey v. Chesapeake. These suits represent landowners in the Barnett Shale and the Fayetteville Shale. The lawyers are gearing up in the Haynesville Shale to file similar suits.
You can read more about this on GoHaynesvilleShale.com. On that site, I have a survey of the prices that mineral owners receive from their operator. Chesapeake seems to pay the lowest of all operators.
I'm not saying don't deal with them. But I strongly suggest you all make sure you have iron-clad, well-reviewed contracts.