Replies to This Discussion

Permalink Reply by jason irvine on August 7, 2014 at 11:30am

Great point Bob. I agree 2015 is. wishful thinking. I hope so. When you look at the wells. There dotted every north, south, east, and west and then there is the empty hole at Tyler southern. Wetzel. I can't figure it out other then its remote. That is why we bought our property which is a hunting camp. I can't imagine them bring at the equipment, tankers and large loads out 8 mile ridge. That road was crap before this all started. They did run a pipe across my property but that is it. I was hoping that would give them a good reason to drill, easy access to move the product.....still. no drilling. I'm keeping my fingers crossed because I can't hold my breath any longer

Permalink Reply by Bob Donaghy on August 7, 2014 at 3:22pm

Jason, looks like the Statoil, Ball unit should be close to you and initial production from the 095-02032 well looks pretty good.

Permalink Reply by William Garrison on August 9, 2014 at 8:30am

Bob, my family has a friend in WV that they shoot sporting clays with, thats in the oil and gas business. He was the one that suggested that we lease our mineral rights and suggested we use Antero. He told my family in the late fall of 2012 that once we lease the minerals ( Feb 1st 2013)  it should take about 2 - 2 1/2 years for them to put a drilling unit together, build out the infrastructure and begin drilling. 

From what you've told me, this guy is an extreme optimist. Your opinion? Bill

Permalink Reply by William Garrison on August 10, 2014 at 7:34am

Bob, from what you've seen in Tyler county, typically how many wells do they drill on a unit? In Tyler county, is a unit typically 600 or 640 acres? Bill

Permalink Reply by Bob Donaghy on August 10, 2014 at 9:28am

Bill, I don't think there is a typical unit! The Hadley unit was created for 10 wells, it has 1335 acres. It is not unusual for Antero to put four or five - two well units on the same pad. Each of these units consists of about 200 acres. The 600 - 640 acre units usually have 6 wells.

Permalink Reply by William Garrison on August 17, 2014 at 9:42am

Bob, my brother and sister are in their mid 70's. After another year, they dont feel they have the time to wait. They have been offered 10 -12K per acre for mineral rights. They feel waiting may only be double that amount or less and it wont be worth anything if they are dead. I'm not selling my 100 acres, im only 57. Your opinion? Thanks Bill

Permalink Reply by Bob Donaghy on August 17, 2014 at 10:10am

Bill, I am 72. I wouldn't sell my minerals because I intend to leave them to my children and grandchildren. One of my neighbors who is in his 80's sold his minerals for more than $1 million. This is not a one size fits all situation. $10 - $12K per acre sounds like a good deal. I think in the long run you could double, triple or quadruple that amount by not selling, but I believe your kin are correct, they are not likely to live long enough to collect.

Permalink Reply by William Garrison on August 17, 2014 at 10:43am

Thanks Bob, thought what you would say. I( guess we'll know next summer. Bill

Permalink Reply by William Garrison on January 18, 2015 at 7:57am

Bob, hope your doing well. 

I'm assuming that shale gas drilling in WV has slowed considerably, given the drop in price of natural gas. Are companies laying off , as they are in the shale oil industry?

From what I read, natural gas has 3 hurdles...

Cracking facilities

transport

ability to export

As long as we continue rely on oil and coal, natural gas will remain the redheaded stepchild of energy.

Your thoughts. Bill 

Permalink Reply by Bob Donaghy on January 19, 2015 at 4:56am

Bill, all is well. I concur with your assessment. I would like to add: 1)the cracker plant at Parkersburg is still in the works. This past week, the governor indicated the developer was in the process of obtaining the necessary permits to begin construction. 2)Transport capacity is expected exceed demand by the end of 2016. 3)At least two CNG plants (one on the Gulf coast the other on Chesapeake Bay) should come on line in the next year or so.

Bob D

Permalink Reply by pitlover on January 27, 2015 at 7:02am

Was made an offer on property in Wick... not sure if it's good or not.... I am not really familiar with the oil and the benefits of the royalties. ... I have mineral rights but if someone could direct me in the right path... I would appreciate it

Permalink Reply by Dan Warner on February 12, 2015 at 3:20am

At this moment in time, a bill has been proposed in Charleston that would allow the gasholes to seize the mineral rights of any owner who refuses to lease, or even holds out for an offer that the company deems 'too high'.  The only requirement for them to be able to do that is that they have 80% of the area that your minerals will be included in already leased.

This is a critical time in the shale boom.

If this bill is passed, the negotiation power of small (and not so small) mineral owners will shrink.

If your minerals are seized in this manner, there will be no signing bonus, and your income from the production will also be reduced.

I have posted information in a reply to your post on the General Shale Discussions (home page) of this site.

Please review it.  The decision is yours.  The offer is a standard, low-ball offer which may have the potential to be increased.  However, it is likely that the gasholes are sandbagging until this bill is decided.  

If the bill fails, you will likely be able to have that offer increased, both the bonus and the royalty percentage.  If it passes, the bonus in your current offer may go away.  Because of a complicated process that I won't try to explain here, your share of the production income will also be reduced.  In essence, you will be forcibly made a 'partner' with the gasholes, and your share will be liable for drilling and other production costs.

Again, that will depend on the company having 80% of the surrounding area already leased, which they likely have.

I have also recently posted information on contacting your (our) representatives in Charleston to voice your opposition to the forced pooling bill.  This can be found under the title 'Forced Pooling in WV' in the General Shale Discussions area of this site.

Talk to your neighbors, and read on here all that you can, but most importantly, let the lawmakers in Charleston know how you feel.  Urge your friends and neighbors to do the same.

Unfortunately (and unfairly), we don't have the luxury of time.  

This should not be seen as advice.  I am in the same boat as you.  I have been playing tag with the companies on some Elk Fork tracts that my mother owns, and I'm biting my nails in fear that I should have had her sign.

It's now all riding on this bill, and I (we) could easily lose.

 

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