So, I'm reading reports from the state, the news, etc. All very positive. Reading assessments here--mostly bummed and/or in denial. I'm thinking the news is overall good. The numbers that were reported today were clearly stated as wells that are CHOKED BACK thanks to lack of infrastructure, with the caveat that numbers are expected to increase dramatically once production is in full speed. The big companies are still moving in and investing $billions. What is the bad story here? Help me understand...I'm missing it. Remember these folks hold their info VERY close, and are probably very strategic with their message. We are nobody's fools here...right???
I didn't say one existed....just that old leases signed in 60s/70s allow for the constuction of facilities to be used in production of Oil/Gas from the unit or other units.
I wouldn't think a company would build such a facility...but the possibity exists.
I could see a company expoiting this clause to allow they to use 10s of acres for a staging area or such.
The whole idea of why I mentioned 'cracker plant' could be built...was to emphasize that when doing these leases the average landowner does not know what all the above ground facilities will cost them in acreage, space, air quality, water use, road availability, traffic, impact fees, taxes, insurance, marketability, present and future real estate values...etc.
And if one has a lease that can easily be extended and even for infinite...then the posibility of any of those structures on your average Granting Clause exists...is it worth it for $700 an acre up front, even $2300an acre upfront,...possibly at $7k an acre bonus outlay....and then royalties. But surely some of these early leases are prime meat for these oil companies as they have the land use without even explaining that they could at any time use it.
all they need is a contract lease with about 300 acres (and they have plenty of those).., a willing local municipality that would love the job creation, and a zoning ordinance change for industrial which most likely would be easy to obtain for them, and of course the location of pipelines is important. What I am saying is that watch out for that 'granting clause' ahttp://www.register-herald.com/todaysfrontpage/x2029128169/Pennsylv...s to what you are allowing on your property". Make sure that you disqualify and state what isn't allowed or make sure that their equipment is listed on your Granting clause as to what they expect they may put there...do not leave it generic for anything for production.
Most likely they would negotiate a seperate contract for a Cracker plant location...but how do you know if they wouldn't use an existing lease that they bought for about 50dollars an acre? you don't know...and you don't know if they would give you today's prices for all that land use...most likely they would do an outright purchase (cause of the publicity)...but don't take that chance.
The Marcellus in PA, thee Utica in Oh for oil are GOIANT finds with tremendous economics.
What is wrong> Every acre of Marcellus gas shale and Utica oil shale is NIOT prospective.
Only portions have th needed characteristics.
6 millin A of Marcdllus may be commercial nit 12 or 24 or 36
Without information, everyone's a fool. Figure out who has it and who withholds it.
it is great, if you are in a locale where the geology is good.