being close to a pipeline makes it easier for the gas co. to sell the gas they extract. Without a pipe to take it to market...the gas well is pointless.
Look at this map as an example. Note the proliferation of wells near the big blue pipeline.
What do you speculate that the acreage your company is putting up might bring ?
new yourk southern tier is where I M in, DELAWARE COUNTY , THE CORE of the marcellus , utica, and few more , if NEW YORK GOV.allows horizontal drilling and get get their act together by june , we will be seeing another land rush, only this time there are landowner groups , more than just individual owners , I see companies paying much more this time around , companies have 6 months to think when to get in on leasing southern tier .
We have been advised to expect somewhere between 8-12K per acre, same as what most of these other large acreage deals have been going for. Nothing groundbreaking there. Were the market a little better, I could have seen it going higher as the acreage is so condensed (approaching 400K almost completely confined to four main counties), but with the market being down I think we'll fall somewhere in the projected range.
Hi Interested Party...and happy new year to you and all here!
you said...The objective with art, card, antique collectors is to buy low, sell high. The objective of people selling concert and NFL tickets on Stub Hub or Ebay is to ratchet up their initial investment and sell high. Why shouldn't a gas/oil company or land lease agent be entitled to do the same for profit and to make a living.
You speak of one time sales...with no invvolvement of the product with the initial seller after the purchase of the product. We are talking about the lands under people's homes and farms and businesses that are ongoing with activity after the initial contract...not the same.
On top of that if one negotiates low towards the Lessor then using their technical skills and obtains info about the value of the shale and what's under it and then doeesn't even disclose it to the landowner?...then goes and makes a profit with that info and doesn't involve the lessor?....sure it may be good profit business for the lessee but not good ongoing relationships with the lessor when they find out they have low balled and have to deal with these companies ongoing or to whomever they assitgned it to.. Not a good business transaction... for the landowner.
Now if the landowner has no idea of how to do NG business and they are just as happy to have what they received....fine. But what if the landowner was told fibs about the value by the landmen and then find out that they could have derived more up front and in royalty? those are the ones that have been hurt. And then the problem of fracking and horizontal drilling concerns..even the concern over who is watchdogging the royalty at the drillhead? These events of card and ticket sales are in nooo way compared to what a five year lease is about between a landowner and the O and G company.
P.s. I had trouble with the edit features in adding my reply...sorry for the bold type and italics and even line at left...couldn't work it.