Comment

Comment by John Woodmansee on November 12, 2009 at 4:37pm

We accept that BGM (aka BuckinghamGasMan) may not be the sharpest tool in the shed, but it seems the aptly named Ms. Nettles feels that those who have signed a lease no longer have an interest in the shale play, or they should just remain mute, for whatever reason. I signed a lease a year and a half ago (with CHK) and feel that I have yet to see a better lease in Wayne County. I do not agree that the NWPOA paved the way for other groups, or even proved that groups could negotiate leases. It has been done in Pa for a couple years now. NWPOA did a lot of research and spread some very useful information. It also supplied a vehicle for property owners that lacked either the ability, or confidence, to negotiate a good lease on their own. The NWPOA negotiated a good lease. One of the problems, to me, was that they signed for eight years after spending over a year and a half researching and negotiating, effectively making it a nearly ten year venture. I feel that the bonus money, calculated at how much per acre per year you receive, (along with key addenda) is the indicator of how good the lease is. Royalties fall into the realm of potential, and in real estate, potential has no assigned value. When you have to add the word "if" as in "if they drill on me", or "if my property is in a field", you have wandered from what actually is, to what might be, what you hope to be, and possibly even what you dream. Dreams don't collect interest or pay the taxes. The group in Friendsville existed about as long as the NWPOA and received a higher bonus offer. Most of that relates to infrastructure in place, wells already producing, and governing bodies allowing, and even encouraging drilling. There is always the possibility that no gas will be found in certain areas and those owners will be glad they signed and received what they did, or rue that they never signed. All things are possible and that makes this a major event in many of our lives. The next few years will be very interesting!

Comment by BuckinghamGasMan on November 12, 2009 at 12:15pm

I'm sure they knew about the DRBC, but who knows their strategy. They are betting that Wayne won't follow the NYC watershed into a no drill zone. NYC will give up Wayne County in a New York minute if they can stop the drilling in the City's watershed.

Comment by nick on November 12, 2009 at 11:17am

How could Newfield/Hess dive in to the Marcellus play in Wayne Co and not have anticipated the difficulty they would have with DRBC? Their timetable on drilling at this point seems like a fantasy. Are these environmental issues able to be resolved or will Wayne Co become the No Drill Zone?

Comment by BuckinghamGasMan on November 5, 2009 at 9:04pm

Wow, don't hold back, let it all out. I don't work for Hess, I guess I'm just a stupid backwoods guy who thinks he is doing well with gas leasing. Lease rates will change throughout the Marcellus depending upon the location od the lease (some areas are more valuable than others) and timing. There is no absolute way to get the guaranteed best deal. You do your best and don't look back. Let me know what the terms are for your lease when you sign and then you can laugh or cackle, whichever you do best.

Comment by Melissa Nettles on November 5, 2009 at 8:26pm

Wow, Buckinghamgasman sure makes a lot of posts for someone who has already signed a lease...are you sure you don't work for Hess? Plus your comments are illogical: Friendsville would not have gotten such a good deal if the NWPOA hadn't accepted a lousy deal first?
My belief is that Hess has no intention of drilling and will just resell the leases, probably to Fortuna who will be drilling.
I'm a landowner, and I don't think the Hess deal is very good. Who are you, Buckinghamgasman, and why are you still active after signing away the next 8 years with a lease that will never reach $3000/acre (maybe $1500) and a 20% royalty that deducts almost every cost the oil company would have?
If I sound outraged, it's because I am sick of seeing the landowners played for such fools.

Comment by nick on November 5, 2009 at 12:03pm

Thanks for that info. It seems like these new drilling techniques need more development as far as environmental issues to really make the natural gas bonanza happen- at least in Wayne co.

Comment by BuckinghamGasMan on November 5, 2009 at 10:25am

I'm not an expert on what the DRBC can do or not do. My guess is that the drilling/fracking itself is thought to be problematical. (See Cabot in Susquehanna County.) You can drill through the Marcellus, but you can't do the fracking regardless of where you get the water because of "dangers" to groundwater. Disposal is a different problem. I believe that one well was allowed in Wayne by the DRBC, apparently for explorations of a shale beneath the Marcellus.

The portion of Wayne Co covered by the Delaware basin narrows as one goes north in the county.

Comment by nick on November 5, 2009 at 9:41am

It looks to me that the Delaware basin area covers a large portion of Wayne Co. But the idea of getting water from a source other than the Delaware is a great idea. I thought the basin authority had no legal position to block storage of post drilling waste water?

Comment by BuckinghamGasMan on November 4, 2009 at 8:32am

Have you ever looked at a map of Wayne County to see what part of the County is in the Delaware system and which part is in the Susquehanna? The Delaware portion is actually quite small. Drillers may be able to get water from the Susquehanna watershed, but still be blocked by the fear of polluted water at the well site in the Delaware basin.

Comment by nick on November 3, 2009 at 11:08pm

Now that chesapeake has withdrawn their request to pull water from the Delaware for drilling, what is their next move? It seems that the Delaware river basin authority has effectively stopped drilling activity. Has anyone heard how companies are planning to get the water they need to drill in Wayne Co?

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