Replies to This Discussion

Permalink Reply by craig on March 18, 2012 at 11:28am

It will be interesting to see what they offer us folks that have the old O+G leases that are beginning to expire shortly. There's enough of us with lots of continuous acreage that there will be competition, if everyone doesn't get stupid and sign something they shouldn't. There's no way they are gonna get them all drilled in time, but they are going to get a lot of it drilled i bet.

Permalink Reply by craig on February 16, 2012 at 4:53pm

My in-laws have property up on the hill of Chester..... I am in no hurry to get them signed up.

Permalink Reply by Gary on February 22, 2012 at 12:50am

The trackhoe is the farm owners and they use it for cuttng firewood..there are two wells on 151 that are being prepared by Range.

Permalink Reply by Jason on February 23, 2012 at 4:28pm

Thanks for clarifying that fed2782.  I apologize for my mistake.  

Permalink Reply by Gary on February 22, 2012 at 12:42pm

Take a look at Range Resources presentation...Looks great for us in Beaver county..

http://phx.corporate-ir.net/phoenix.zhtml?c=101196&p=irol-prese...

Permalink Reply by lou alaksin on February 23, 2012 at 10:13am

Lot of info on the RR presentation - most of which is "greek to me".     Interesting to see that RR considers almost all of our county to be in the SUPER RICH marcellus category which is one step above wet gas.    Only the SE corner is in the wet gas.     They say "wet gas provides excellent economics" and "higher btu and more ethane and liquids are expected in super rich areas".     Most of their development in SW PA has been in the marcellus layer.      They are just beginning to explore the upper devonian and utica layers.     I haven't noticed  much discussion about the upper devonian in our area.      What does CHK say in their presentation?

Permalink Reply by Jason on February 23, 2012 at 4:27pm

I haven't seen anything regarding CHK's presentation like Range's.  I do know that CHK is putting in 2 pads within 2 and 4 miles of the Hancock/Beaver County line on Hardins Run Road.  Range's activity near 151 in Independence is encouraging as well.  I haven't been by there lately, is the pad work still in progress?  

Permalink Reply by gary m on February 23, 2012 at 2:50pm

hi ive been contacted by phone by land man regarding leasing my property i own 2.75 acres in brighton twp down the road from what will be the jenkins well and also another well being put on engle road in industry is just up the road im basicly in the middle of the two. about a month ago they tested my well water and tonight had a message regarding the leasing,2/23/2012. my question is should i contact an attorney and, who if any in this area are truly qualified or familiar with this subject. Anyone out there hired an attorney locally or gone with someone from washington county or pittsburgh area that may be more in the know on this matter any recomendations will be appreciated just let me know thanks...

Permalink Reply by Allen on February 23, 2012 at 3:31pm

 Welcome Gary. There might have been a lawyer or two in the small number of people that sat in on the 2/13 supervisor's meeting in Brighton Twp. I got to that meeting the same time the group left for another meeting at Chippewa. (that's why I assume there was at least one lawyer in that group)  I'm on Neville 3/4 miles north of Jenkins Pad A and after three months of exhausting research I expect no issues with ground water. For what little my .2 acres is worth I didn't feel the need to consult a lawyer. 

Permalink Reply by Jason on February 23, 2012 at 4:21pm

Gary, if you do go with a lawyer, make sure you pay him/her by the hour.  It's going to run about $300/hour for one.  From my friend's experience with one, keep him on topic and not to chit chat.  Time is money.  

Payment should only be for consultation and not for any ongoing activity.  There are some lawyers who are persuading property owners to sign away percentages of their royalties for letting them negotiate their lease.  BAD IDEA!  

About 4-5 years ago I listened to a Penn State Extension meeting in Waynesburg and a lawyer, Kris Vanderman spoke.  Very experienced (20+Years).  He's not cheap, but good things aren't cheap.  He has an office in Washington, PA and Charleroi.  Just so you know, I do not have any affiliation with Mr. Vanderman.  My friend consulted with him with good results.  I have a licensed attorney in WV who doesn't practice in PA.  

Also, with your acreage, you may even get a non surface lease with the landman.  It's worth a shot to ask him.  Just have him add into an addendum, no surface activity, and their'll be no need for an attorney.

Good luck

Permalink Reply by craig on February 23, 2012 at 5:04pm

Gary,  First off, I have signed 3 leases over the past few years in Beaver County. I have not used an attorney for any of them However you need to get educated some to do it yourself

Things to know : Don't be in a hurry to sign anything. If they are in a hurry, either they will meet your reasonable terms or they are hustling you to sign without researching what you are signing. A good lawyer is a good thing, but I don't know one in the gas industry.   Don't take anything they (landman) say to be set in stone. What you sign is what you get, not what they tell you. Words will mean nothing if you have a problem in the future. They probably won't lie to you, but will only tell you either what they know, or what they were told to tell you....but certainly they won't tell you everything.

Be politely firm with the landman, I assume it is mason/dixon. First off, ask him if you are going to be part of one of the nearby units formed from the  nearby wells to be drilled. Since you had your water tested you will be within 2500 feet of a well site. That's what they did nearby me. However, they don't put everyone who's water is tested into a production unit....this happened to my brother. His property borders the unit but he is not a part of it. But the next pad will get a good chunk of his acreage into a unit.

Here's what I wanted and got on 1 acre in S Beaver. It took me 6 months, but then again, they weren't drilling as close as they are to you, so they may need to sign you soon.

$3,000/acre

17% royalty (don't budge an inch on this) with a free of cost clause.

Having small acreage may mean some of the following aren't as applicable as others.

Addendums to the lease including :

Location approval clause, Surface damage/restoration clause, pipeline clause(no foreign gas), no storage rights(above/under ground, and most importantly a pugh clause. You can get picky and add more safety clauses about water and timber, etc as well.

These last ones may not be a big deal to you with 2.75 acres. A pipeline could possibly cross your property i suppose.

Another thing, If, from the well pad/site you are less than 6,000 feet or so AND South or just abit east of south , or North/North West of a pad, your are likely to be in a unit. 

Wish I had an attorney I could reccomend, any ole attorney will not due, find one and ask how many years or how much experience he/she has been doing gas leases. I've seen leases that I could have given better input to than the lawyers who wrote em up. Any other questions, i'll try to help ya.

If you do really want a lawyer, I'd contact Penn State, they folks that answer shale questions and I"m sure they could steer you the right way.

Good Luck, keep us posted!

Permalink Reply by mark p brletich on March 8, 2012 at 1:39am

good information craig but what is a PUGH CLAUSE? really interested in learning as much as i can seems i know as much as some of the lawyers i talked to real scary in a way we proposed aprox what you referenced in your statement we to are within 2500 feet of wellhead little more property please respond keep needing good info like yours  by the way part of the blasco unit in hanover twp this is arequest from your feb 23 statemenmt

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