Butler County Landowners Group update

BCLG UPDATE


We had a great meeting last Thursday with more acreage added to the group! For those that were not able to attend, we gave updates regarding the push by Shell to acquire more lease holdings in our area. Their current offer is $3000/ acre with a 15% gross royalty but the lease needs a lot of work! In addition it was concluded that our target was $4000/acre and 20% gross royalties. To jump into a gas company favored lease at these numbers is premature.
Our tactics to reach our goal will be:
1) Continue to work with Shell on the lease as well as the monetary apects.
2) Work with Rex, Chevron and Exxon (as well as any others that wish wish to throw their hat into the ring)
to create a competitive market for leasing in our area.
3) Acquire additional information to support the value of leasing in our area.
4) Continue to grow our group. We have grown and will continue to grow, which makes items 1,2 and 3 much more effective.



On that note, I will be meeting with both Exxon and Rex this next week and hope to set up another meeting with Chevron soon. The truest determination of the value of a product or service is through the application of "fair market value" and nothing achieves that better than competition!


Thanks to some digging by one of our members, who discovered that the data from the seismic testing could be available for a fee. I contacted the company that is handling the data conversion and analysis and yes it would be available in September at a rate of $2700 to $4000/ linear mile depending on the density of the area.. This is a 2D study and will only show what is directly below the sensors. If we were to purchase a few miles of this data, we would need to hire a geophysicist to analyze the data, but it could be an investment that would yield an excellent return for us as a whole.

We continue to advocate patience. Up to this point things moved very slowly, but now activity is picking up and will continue to do so. With this increase in activity will come more lucrative offers. Landowners jumped at opportunities just 2 weeks ago, signing prematurely at $1500 and 15% net and now look where those offers are.....what will be on the table 2 weeks or 2 months from now????? As long as we stick together we can achieve the lease that meets our requirements as set by the members of the group.

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Replies to This Discussion

Permalink Reply by Michael P. Davidson on August 17, 2011 at 1:27pm

Myself and my wife have 26.8 acres in Muddycreek Township along rt 19. and are interested in joining in.

Permalink Reply by DKinPA on August 18, 2011 at 2:34pm
Michael,  I am sorry but we are only taking landowners in the Moniteau SD area.  You may want to work on forming a landowner group in your area.......definite advantages!
Permalink Reply by Gasman on August 17, 2011 at 9:00pm
I have heard that Exxon/XTO is now making offers that exceed the ones made by Shell.....obviously offers are going up, do you have any information regarding Exxon/ XTO's offers?
Permalink Reply by matthew h mcsparren on August 18, 2011 at 7:17am
anyone have a contact number for a Exxon landman?
Permalink Reply by DKinPA on August 18, 2011 at 2:53pm

Gasman,

we do and all I can say on here is that it is getting interesting!  :)

Permalink Reply by Outback on August 18, 2011 at 3:41pm
You go Doug......our faith is in the Lord and BCLG!!!!!
Permalink Reply by DKinPA on August 20, 2011 at 8:40am

Outback.....WOW, I don't think we are in the same league but we are glad you have faith in what we are doing, it is a group effort.  Check your E-mail for the latest update.......some GREAT progress this week!

 

Hey, thanks again, much appreciated!

Permalink Reply by JMS on August 18, 2011 at 1:08am
I was just asking about the shale formations in the area of Hilliards and Whiskerville...Are these areas that are being considered for drilling?  Where was the seismic testing done?
Permalink Reply by Larry K. Southworth on August 18, 2011 at 1:56pm

If you get any info, please contact me " lksouth@carolina.rr.com".  My family owns 50% of all mineral rights under the old Southworth farm (122 acres) on Stewart RD, between Old Brick Rd. and Nagy Rd.  As I live in Charlotte, NC, it's a little difficult keeping up to speed.

 

Thanks for any info you can provide.

Permalink Reply by DKinPA on August 18, 2011 at 2:35pm
Larry,  sent you an E-mail with information about the group and added you to our update list......we have a lot of acreage in your area and would love to have you in the group!
Permalink Reply by JMS on August 18, 2011 at 1:15am
If a lease is agreed upon by BCLG, does the individual still need to have an attorney review the lease to make sure that it has everything the individual feels is important?  Or is there just one lease agreed upon by the group?  If so, how does the individual know that all the bases have been covered?  Is this a privlege you give up if you join a land group?
Permalink Reply by DKinPA on August 18, 2011 at 2:48pm

JMS, 

Our group does have its own O&G attorney who represents the group in developing, reviewing and advising on the group lease and addendums and she does an outstanding job!  We intend to bring to the membership a lease that no landowner would want to turn down and has all of the landowner protective addendums but ultimately it is up to the individual landowner as to whether they sign that lease or not.

By being in a landowner group you do not give up priveleges but gain them.  A group has much more leverage to dictate what is in the lease and what addendums are included.  A smaller landowner (less than 100 acres) does not have much leverage to dictate to the gas company what will be included and for how much so by joining a group (whether it be ours or another true landowner group) you now collectively have the power of thousands of acres and the leverage that goes along with that.

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