Leases Offered in Noble County

I'm new to "gomarcellusshale", as well as new to this business.  We have a 152 acre farm with "Clinton" gas wells which supply our needs.

We've been approached by Fossil Creek Energy Corp (FCEC) for $50/acre, 12.5% Royalty, and $10,000 if a well is drilled.  We are sitting on the Utica Strata.  I've carefully read the lease and am very suspicious of the terms.  We are consulting attorneys.  I don't see any members from Noble County..and some interesting notes from Guernsey which lead me to suspect the FCEC lease.  Can they broker a lease after signing "cheap"?

We have news of ARTEX Oil offering leases in our County, they're out of Marietta.  Any comment on FCEC, ARTEX, and my suspicions would be welcomed!

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Replies to This Discussion

Permalink Reply by Private KeepOut on September 27, 2011 at 4:00am
Does it really matter who backed out. This isn't about some conspiracy!  KWGD has the best landowner friendly lease there is out there, and that I've seen thus far. If you want to join you sign a letter of engagement and you have all the way up to the actual lease signing to back out at no cost to you. It just so happens that when the bid package came back from a perspective bidder....they wanted their cake and eat it too!!! We as a group voted to reject it, therefore the package is on the table for re-negotiations. If a few people left the group then that was their right to do so.
Permalink Reply by Christiane Marshall on September 27, 2011 at 3:26am
We can give you the phone number of KWGD through messaging. Just ask anyone in the group. I'll only be home part of today, so if I don't respond, ask someone else. You need to friend request if not already in the person's friend list, but it gives you an opportunity to send a short message when you do that.
Permalink Reply by DON B on September 27, 2011 at 3:58am
I agree with your observations Robert. I also understood that there was only one owner that backed out of the agreement. Most who voted to decline the offer were convinced a better offer could be obtained with further negotiations.
Permalink Reply by Christiane Marshall on September 27, 2011 at 6:49am
Are there any other forums where we can send out a last call "all aboard" message?
Permalink Reply by George Smolinski on September 27, 2011 at 1:54pm
I am a little surprised. I own property in Noble County. I have several people who I talk with regularly on this forum and was invited to enroll with KWGD, because they were looking for more members. I therefore contacted KWGD last Friday. The secretary took all my personal information, even asked what previous offers I had or do currently have. I was open and honest in sharing information. I was instructed to fill out the appropriate paperwork and fax it to their office when I arrived home from my office.  A half hour later my wife called me and informed me that I was not to hurry home as KWGD had called and stated that Elk and Jefferson townships would not be considered to join in group 5. To say the least I was not very happy with the way I was treated. Last I knew Elk and Jefferson Townships are in Noble County.  I do have a contract that is not too bad, but feel I would possibly be better served within a group. Any suggestions?
Permalink Reply by Red Skelton on September 27, 2011 at 2:55pm
Apparently they are letting these O&G companies cherry pick what they want. I have a feeling those that voted to turn down the previous offer may soon be sorry for their decision. I thought the purpose of the group thing was negotiating power and highest bidder takes all not just pick and choose.
Permalink Reply by Private KeepOut on September 27, 2011 at 4:51pm
I don't think we will be sorry for anything....would you accept a net royalty payment?
Permalink Reply by Christiane Marshall on September 27, 2011 at 3:15pm
George, I'm sorry to hear that.
Permalink Reply by George Smolinski on September 28, 2011 at 12:57am

I won't dwell on the negative....moving forward...staying positive.

Wish KWGD group 5 the best.

Permalink Reply by RobertS on September 28, 2011 at 1:30am
Well, until we actually get the cash in the bank, all we have are eggs, not chickens. There is bound to be a certain amount of anxiety as to whether they will hatch.
Permalink Reply by Christiane Marshall on September 29, 2011 at 2:10am

George, I had a flat tire yesterday and ended up on the road. Lots of people stopped to help as AAA was delayed! (Got enough help to cancel the call!)

As a result, I got talking to some neighbors. Apparently last year or so, some prospectors came out and bought mineral rights from some neighbors for $10 an acre!

I'm thinking that even if things work out for us with the KWGD group, I'd like to get some Noble County people together to see what a group might be able to do--at least prevent more from being robbed! And, I'm wondering if people who were taken like that might not have some kind of legal recourse.

Maybe KWGD might take on another group also if it was land that was contiguous and in the same area. At this point, they are trying to do what's best for the existing group which is mostly the norther townships of Noble County. When I encouraged people to call them, I had understood one of their updates to mean that they were accepting from northern and southern townships.

It could only benefit people in the southern townships to get together right now! Otherwise, the present feeling might lead some to take offers that are not that beneficial.

Permalink Reply by Jake Jackson on September 28, 2011 at 5:01pm

 would check out everything and there is a lot out there. i found this one to be really helpful.

it has everything from leasing to what is happening near drilling sites. good luck!

http://www.marcellus-shale.us/gas_flares.htm

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