Replies to This Discussion

Permalink Reply by Inchworm antenna on October 2, 2012 at 10:51am

Jschurm,

there are no group leaders.  Just a hard working core of NOT COMPENSATED community organizers, who have spent hundreds of hours bringing the issue to light, and who have now worked with Hilcorp to improve their offer.  Hilcorp is taking a higher road in comparison to other companies, and deserve praise for such.

Chesapeake was sued by West Virginians in 2005 or 2007 for paying people  100 or 200 dollar annual flat gas royalty eventhough WVA had a min royalty law of 12.5%.  Evidence shows they did the same in Kentucky where they were sued for flat rating people in 2009.

I guess some companies work hard to enforce the provisions of those old leases and others work with you to make amicable improvements. 

Considering the alternative, I am glad Colmbia/NiSource partnered with Hilcorp.

Permalink Reply by jschurm on October 3, 2012 at 9:07am

What leverage do you have if Hilcorp is strictly doing this because they are amicable? 

You have something that they want/need. The ratification of a lease that is not structured for the way they want to drill this area.  The only reason that they are probably sitting down and making an offer (settlement) is because the lawsuit that you are warning people against shed that light you spent "hundreds of hours" to copy. I would be very surprised if they don't just pick off what they can at 15% and then make a real settlement for those who are sticking to their guns and continuing with the lawsuit. 

I really hope this works out for you all and that I am wrong, just think that you have an opportunity to rectify something rather than ratify it. 

Permalink Reply by Mud Flaps on October 1, 2012 at 8:23am

EMBRACING the old lease??  Sounds like they are willing to improve the old lease for a brave new world.

 

Permalink Reply by dr j on October 1, 2012 at 11:31am

In essence by signing an AMENDMENT, you are agreeing to the terms in the old lease, unless they are specifically addressed in the amendment.   No one has seen the amendments as of yet and I am confident there are significant improvements.  But I am also sure by Hilcorps' own people, the one thing that will not change is the claim Columbia makes to hold the lease by storage.   The landowners are in this situation for exactly that reason and if we don't rectify it now, it will raise it's head again. 

Permalink Reply by Mud Flaps on October 1, 2012 at 4:58pm

"Claim Columbia makes to hold the lease by storage"  Is Columbia Gas is operating a pretend storage field?

Permalink Reply by dr j on October 2, 2012 at 1:48am

Doesn't matter, the ability to hold all the production rights by claiming storage while not abiding by the rest of the conditions of the lease is in question. Not to mention the issue of Columbia being the sole determinant as to if the are storing gas.

Permalink Reply by 0ym9x5ag7ury2 on October 2, 2012 at 6:51am

IA, 

If you look at the ODNR list of companies that have a permit to drill in Ohio, you won't find Hilcorp. 

Do you know what happens when you sign a lease with a middle man company, similar to DPS Penn?  They take the difference betwen what you are paid and what the oil & gas companies are willing to pay. You will be sharing your Bonus with Hilcorp.

Let us know how they treat you after you sign up.  

Permalink Reply by Utica Shale on October 2, 2012 at 7:28am

Ron,

" ... you won't find Hilcorp ..."

 

1st well permit for Hilcorp in Columbiana County  ...

 

Date Issued: Aug 13, 2012

Permit # 34-029-21745-0000

Well Name: HANOVER-MOUNTZ 1

HILCORP ENERGY COMPANY

1201 LOUISIANA STREET

SUITE 1400

HOUSTON, TX 77002

(713) 209-2400

 

Permalink Reply by Inchworm antenna on October 2, 2012 at 4:24pm

Thanks helping to set the record straight .  You are the "Secretary of Wells" :) I remember a few weeks ago when you posted the Hilcorp well info in Hanover Township.   I beleive their horizontal permit was for something like an 8,000 foot horizontal.

Permalink Reply by dr j on October 2, 2012 at 11:37am

Hilcorp does seem to be a stand up producer.  They are privately owned with one stockholder so you will not find the amount of data on them you find on the other producers.   The issue here.... NOT Hilcorp.   In fact I would venture so far the storage field land owners have had more interaction with the powers that be in Hilcorp than any landowner has had with any producer.   That alone tells you how tenuous this situation is.   Columbia/Nisource have blown their chances to finesse the situation multiple times.   It appears they are counting on Hilcorp to attempt to pick up the ball they have dropped.   They are trying but it might be a bigger job than they anticipated.  

Permalink Reply by Inchworm antenna on October 3, 2012 at 4:54pm

jshurm,

Hilcorp's offer is not a settlement.  It's an offer.  There are obvious positives and negatives to being in or out of a lawsuit.  It's not about warning people against suing, however It is important that poeple understand all of those risk factors, which should be best left up to their attorneys to describe.  For example, the proposed offer is apparently not available to the litigators.  People need to carefully consider all their options.

Nobody besides Hilcorp, NiSource, or Columbia know what their endgame legal strategy  is.

Permalink Reply by Utica Shale on October 4, 2012 at 2:13am

IA,

 " ... For example, the proposed offer is apparently not available to the litigators ..."

 

 Is Hilcorp's offer available to any litigator if they agree to drop out of the law suit ?

 

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