Comment

Comment by Lance Nimmo on December 10, 2012 at 9:24pm

That stinks, Shell was leasing in Pine twp. last year @ $3,250 an acre with 18% royalties no deductions. Seems like the people claiming to hold out aren't always right after all...

Comment by Samuel J. Orr on December 10, 2012 at 9:19pm

Thanks James, Good work! Apparently values are down a little but its not bad. the good thing about Shell is that they are a BIG player with the size and funding to develop an area and fund by themselves or with others necessary infrastructure. (James has done his part; now others need to come forward.) My free advice would be to consult a knowledgeable O&G attorney before signing any lease with any O&G company. Though bonus money and %tage royalty may not be negotiable; there may still be some landowner friendly clauses that Shell might agree to. Unless you ask, you won't get any of these things.  All of this IMHO and I may be wrong!

Comment by james on December 10, 2012 at 8:23pm

I talked to shell landman, they are paying $3000 and 16.5% royalty, they are leasing in the Sandy Lake area. Sandy Lake has alot of companies working around it including, Halcon, Shell, and Hilcorp.

Comment by Samuel J. Orr on December 10, 2012 at 5:43pm

Thanks Elnathan! Now how about someone who went to the Shell meeting in Sandy Lake today stepping up to the plate and telling us what happened? Was it a "lease signing"? How many showed up? What acreage (location) is Shell targeting to lease? What was / is Shell offering in bonus money per acre, and royalty percentage?  Perhaps those who attended the meeting have sworn a blood oath of secrecy?? Maybe the meeting was cancelled? All very mysterious! 

Comment by Elnathan Cory on December 10, 2012 at 11:15am

By the way there is a nice little restaurant on the corner of 173 and Georgetown Rd about a mile from the church. if you need food before or after the meeting. It is called Grantham's Landing.

Comment by Elnathan Cory on December 9, 2012 at 9:58pm

If you have questions about the Shell meeting please call (607) 727-1474. I have no futher info. I am not going to attend. I am signed with Hilcorp. All I know is that I got the letter and have posted the basic info in it. I wish I could help more.

Comment by Samuel J. Orr on December 9, 2012 at 1:03pm

Michael:

Thanks for clarifying. I know your intentions were good. I just thought that things need to be clarified and you have done that. My cousins who are part of Mount Jackson 4 group 2 have received no news of any intention by Halcon to pay. I am thankful that M&P/CX are continuing to try to market their property to other O&G companies who may be interested. I am hopeful that Halcon's Allam well in Venango County will be a good well. It is drilled and presumptively fracking has started or is about to start. Of course after fracking the well will have to be rested for 60 days before the results will be known. This well is not far from the Venango / Mercer County line. A good result would likely help not only western Venango County but also eastern Mercer county as far as stimulating more leasing and ultimately more drilling.

Comment by Samuel J. Orr on December 9, 2012 at 12:55pm

Jim:

Appreciate your post. You have asked  pretty much all the same follow-up questions that I have. A good start would be to know who received letters, and also to have someone post a copy of the letter. We all know about Vista / Shell's joint venture for Mercer County which was announced to lessors of Vista at a meeting in September in New Lebanon. Although Vista / Shell control a lot of land in the northeast quadrant of Mercer County, there are undoubtedly many acres they do not control.. My speculation is that Shell might be trying to fill in gaps in order to establish contiguous acres that could easily be aggregated into drilling units of 640-1280 acres. Halcon's  "options to lease" in the area should be expiring, if they have not already expired. I am referring to primarily people who were part of Mount Jackson 4 who have not been paid, and particularly to those in the northeast quadrant of Mercer County where Vista / Shell control a lot of acreage. Hopefully the questions that you have posed will elicit some responses from others who have relevant information.   

Comment by Michael R on December 9, 2012 at 10:09am

Samuel, My intentions were not to contribute to the already present amount of misinformation regarding oil and gas developments.  I was simply asking if anyone has heard anything relating to what I was told.  I merely wanted to try and confirm for myself.  I do not know the extent of the conversation between my friend and the CX employee, but I will say that my friend was contacted later in the evening and was told they will not be receiving their bonus payment.  Perhaps my friend misinterpreted Halcons desire to only pay out group one members and thought they were included in that area.

Comment by Jim Litwinowicz on December 9, 2012 at 9:41am

Is this lease signing event open to all landowners in Mercer Co?  If not who is the offer for, is it specified by townships? Or is it just for people that have been in discussions with Shell? If it is open, how do people get to see the terms of the lease? Will they have time to read through it and take it a qualified attorney? Are there copies that people can access online? Just what are the terms of the lease?

Does it allow unlimited deductions? Does it have a Pugh Clause. Does it restrict surface uses like foreign pipelines, compressor stations, metering stations, storage ponds and more? Does it have a renewal clause? Does any activity like a survey or applying for a permit activate the HBP clause or must they actually have a bit in the ground? What compensation for surface damages is included? Who warranties the title......the landowner? Does it indemnify the landowner?

My fear is that this is Shell's standard lease ant that hundreds of people will sign up not knowing what rights they are signing away, not understanding what the company can do to/with their property, and not knowing what financial issues will impact them. All they will see is what the signing bonus will give them.

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