Comment

Comment by John Schmeding on December 23, 2009 at 9:43am

Thanks for your response. I guess my question is were residents aware in 2006 that the oil companies would be seeking to lease their land? Or when were did they first become aware that their land held more value as a result of the natural gas?

Comment by BuckinghamGasMan on December 23, 2009 at 1:14am

I think that 2007 was the first year that current leases were signed. Looking for old leases that will come due soon to buy up ?

Comment by John Schmeding on December 22, 2009 at 11:50pm

Actually any leases done in 2005 or 2006?

Comment by John Schmeding on December 22, 2009 at 11:29pm

Were there any leases done prior to 2006?

Comment by John Schmeding on December 22, 2009 at 11:28pm

When did residents of Wayne County realize the potential for leasing their land?

Comment by BuckinghamGasMan on December 22, 2009 at 10:20pm

Depends on your definition of "aware". I leased my land back in the 70's for $10/a and laughed at their stupidity for leasing the land for gas. Luckily the 10 year term ran out. In the summer of 2007 people were leasing for $300 and less and felt really good about the price. In 2008, prices exploded. In 2009, most of those still unsigned signed with Hess.

Comment by John Schmeding on December 22, 2009 at 9:48pm

What year did residents first become aware of lease potential?

Comment by M. N. on November 16, 2009 at 4:09pm

Excellent info, thank you. I'll pass that along to my neighbors.

Comment by BuckinghamGasMan on November 16, 2009 at 2:32pm

No problem, M.N. To respond to a question in your latest, I recently heard of a company that signed up a group of LLs in Luzerne County for a price and then signed a joint partnership with a company from Canada and transferred all the leases to the JP. The signing company gets to keep 25% of profit. Could be a profitable strategy for the signing company.

Comment by M. N. on November 16, 2009 at 12:28pm

I apologize to the group for my sharp comments. That day I received two different letters from two PA legislators, saying exact opposite things. One basically said the rule of capture is not an issue, the other (who previously said she would introduce a bill to protect landowners) said sign whatever lease you can, it's your only protection. I was paranoid thinking the gas companies were everywhere, spreading disinformation and maybe buying off lawmakers.
I still feel that so many arguments made to the landowners are illogical.
For instance, "if you don't sign they will take the gas from under your property anyway." If that were the case, why wouldn't the gas companies just cherry-pick 140 acres here and there to drill on? Why sign everyone at such additional expense?
Also, why would there be a rush to sign at the lowest gas price in 9 years...particularly with a company (Hess) that has not applied for any drilling permits to date?

Did any of the groups provide information about the motives of companies who take leases without intending to drill, or how much profit they make on the swaps?

That is the kind of information it would be useful for the alliances to provide, along with a clear and rationale explanation of members options and outlook if they don't choose to sign.

Sorry Buckinghamgasman, I didn't mean to insult you, just felt that the attitude here was insufficiently skeptical of the tactics we all know have historically been used in oil and gas leasing strategies. They didn't just start doing this (like we all did) and they aren't in it for fun, fairness or friendship. When landowners get illogical information they need to demand clear answers.

The clearest information I got was from calling a gas company who said, check the drilling permits and applications and go with someone who intends to drill.

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