Replies to This Discussion

Permalink Reply by Bill Simpson on March 3, 2013 at 4:25am

Joe....

I am in the Dorset/Richmond area as you are. I went and had all my properties researched for possible Oil & Gas leases that may have been on them. The leases that were pulled dated back to the fifties covered a stack about 8 inches high. I lost track of all the assignments. Some of the properties were assigned 2-3 times in one year. What I did find out which I did not know was that Enervest came in during the later part of 2011 and bought out tons and tons of leases in Ashtabula County including all of mine. Was told that the Cart Blanche purchase covered approximately 66 pages. Just one big purchase whether dormant or not. I was told this is not an uncommon practice during my research process.

I was surprised to see this Enervest document dated 2011 in my research. Luckily, my three properties for one reason or another were able to be cleared via Affidavits for dormancy/lack of producing wells etc. Enervest signed off on all of them and the releases have been filed and recorded. My neighbor did know about the Enervest purchase until I showed him the assignment as his property was at one time tied into mine. His is still held by Enervest even though there are no producing wells.

I am wondering if the 22k acres that you mentioned above is part of this 2011 purchase.
Was also told that Enervest is dragging their feet on releases for one reason or another.

The funny thing is that the Enervest legal person who signed for all the 2011 purchases was the one who signed off on my three (3) releases.

Question. If a landowner who was part of this mass purchase does nothing to clear the dormant/inactive/non producing etc leases from his/her property and drilling should start can Enervest claim the rights if the land owner does nothing?

Welcome feedback

Permalink Reply by Joseph-Ohio on March 3, 2013 at 5:43am

Bill,

My question if I were in your shoes would be when my leases with Enervest came to term and when I could be free to seek a new lease / renegotiate.

I heard that EnerVest also bought up a chunk of Chesapeake's leases recently - so I continue to wonder as Ashtabula seems to be in Limbo.

Stay in touch.

I'll send you a friend request in a little bit.

J-O

 

Permalink Reply by Bill Simpson on March 3, 2013 at 6:16am

My suggestion, as mentioned by many many others, would be to do your research now and see what rights you actually own as a land owner.

Money will coming at some point down the road, hopefully, and someone will be getting it.
Now whether or not it is yourself, or someone else that owns the rights is a question I would be asking now.

Oil & Gas companies have deep pockets and staff attorneys which we don't. Every property and every old lease is different from what I have researched. I was very very lucky as I was able to void the Enervest leases out. If monies come our way I will be the one going to the bank.

Permalink Reply by Joseph-Ohio on March 3, 2013 at 7:06am

Bill,

Our ground (me and my wife as landowners) is unleased as of now.

No entity holds a leasehold on our ground.

We own the natural gas, oil and minerals that lie within our land.

Our land is Title Clear.

We want to sell the rights to develop the natural gas and oil resources.

We've done our research and know that we're free to enter into another lease with any developer we choose.

As I understand what you wrote earlier, you seemed to pose a question as to whether your land is leased with EnerVest or someone else.

If you know the answer to that (what seemed to be your earlier question) and you're leased and satisfied with the lease - well then your satisfied and waiting for some driller / developer to drop a well or wells.

We're looking for the next lease for our land - whether from EnerVest or elsewhere.

It's got to be something we're willing to accept.  That means we have to be satisfied with the signing money, gross royalty percentage, and land / landowner cognizant terms and conditions.

Say did you get my friend request yet.

If you accept you can send e-mails directly and we can exchange information in that manner instead of public posts.

J-O

Permalink Reply by Bill Simpson on March 3, 2013 at 8:17am

"As I understand what you wrote earlier, you seemed to pose a question as to whether your land is leased with EnerVest or someone else."

As I mentioned earlier, Enervest came in late 2011 and bought up tons of leases, whether valid or not. They did not research..they just opened the wallet and bought.

My Enervest leases were able to be cancelled due to no wells ever been drilled and no delayed rentals. Basically my land was not producing anything and the permits taken out to drill were never acted upon. I was very very fortunate. My neighbors are not so fortunate.

Right now, in my opinion and my opinion only I will go with Buckeye Mineral/ALOV should something come my way.

I have printed/aquired/read about 4-5 leases from the folks out there and I like the lease (ALOV) they offer. Again, just my opinion only. Land groups can bring on a lot of debate so I stay away from my opinions.

Bottom line is if you own your rights you can make you own destiny/future. Hopefully the choice/decision is a good one as the lease you sign will be around when we are dead and gone.

Also....once Enervest signed off I set up an LLC to separate my mineral rights from the above ground property. This was done for liability issues and also if I sell my land/house later on I still own everything underground.

Permalink Reply by Joseph-Ohio on March 3, 2013 at 8:38am

Thanks for the insight Bill.

As far as we (my wife and I) are concerned in way of leases, we'll sign the lease when we see the money.

We see no reason to sign into some kind of agreement that doesn't pay.

We don't want to tie our land up for months or years unless were paid.

That's just us.

If Buckeye has a buyer for it's clients leases we would think they would be calling us up as their 1st order of business so as to be able to earn their 2 3/4% on our lands as well.

So far no calls.

Stay in touch neighbor.

J-O

 

Permalink Reply by Joseph-Ohio on March 3, 2013 at 10:19am

Bill,

By the way, we've seen a few leases in the past as well but, we haven't seen one from Buckeye yet.

Everyone I've spoken to has always referred to the ALOV leases used in the past when talking Buckeye.

To our way of looking at, that may or may not be true.

It's all got to come together for us to be interested enough to sign anything.

So far it hasn't.

However, we've all  got to keep the faith !

Hoping we all hear what we want to hear soon.

The sooner the better !

Good luck to all of us.

Like I say - keep posting and / or send an e-mail anytime.

J-O

 

Permalink Reply by brynmore on March 3, 2013 at 10:27am

was the lack of selling the ashtabula acreage, in some way ,interest of holding your high cards? joseph-ohio , what did you see or know as to how that artilce translated into delays? just curious

Permalink Reply by Depolarized Farmer on March 3, 2013 at 11:07am

EVEP said it might also sell their "retained acreage" this year as well...  it just a matter of receiving what they consider to be an attractive price.  If it takes more time, they will wait.  EVEP picked up the extra Ohio & PA acreage (warts and all) to augment their existing acreage position... a basic buy low / sell at a higher high strategy.  In my experience, they've been fair to work with getting old defunct leases terminated.  They are realistic, and know that buyer won't pay value for dead leases.

Ashtabula landowners would do well to change their expectations and vocabulary.  Let's stop talking about delays - this will happen when it happens.  Expressing anxiousness undermines one's position, and you can't do anything to speed things up unless you are prepared to drill your own well.  Be thankful you have some breathing room now to get your title cleaned up.  Unless you want to risk getting caught with your pants down, get in a group... that is, unless you own 300 contiguous acres and want to roll the dice.  For what it's worth, I vouch for Bob Rea / Buckeye Mineral.  The more who get on board with him, the better the deal that can be negotiated.  If you wait to see what the negotiated terms will be, that will limit how good thosse terms could have been! 

Permalink Reply by Joseph-Ohio on March 3, 2013 at 11:09am

I translate more delays because of the delays our County has experienced to date and now instead of selling to interested developers basically sitting on the resources.

Can't say for sure but my gut feeling is Ashtabula County holds alot of valuable fossil fuel resources.  Gas, Wet Gas, Oil all included.  We need more Utica Test Bores / Wells developed and producing to paint a clearer picture.  Maybe the developers don't need any more info. to guide their production.

Why they're saving them to be developed so late in the game ?  I'm guessing it's more of a marketing ploy / tactic than anything else.

They'll sell the resources they develop only once (as will we as landowners sell our leases only once).  The majors have alot of money and income secured - maybe they're making enough to keep all the shareholders happy just the way it is for awhile.  The longer they (including EnerVest) wait the more valuable the resources become.

My guess.

It stinks but what can we do to better our lot ?

Keep stirring the pot man - basically it's all we can do.

That's my take on things.

I think it would be good if we unleased folks get some attention from a flipper or two or three.

We'd rather wait for royalty payments after we've been paid a decent signing bonus for a 5 year paid up front leasehold - only our opinion as landowners speaking for themselves here.

Looking for a flipper or a developer / major with deep enough pockets to make a deal.

That's where we are.

Permalink Reply by Joseph-Ohio on March 3, 2013 at 11:51am

Talk about two Polar Opposite perspectives ! ! !

D F vs. J-O ! ! !

 

Permalink Reply by elliemae82 on January 28, 2014 at 11:35am

Anyone have any updates on Enervest  holding on to these leaseholds?

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