Any more ALOV updates

We have property in Trumbull County and have been told by ALOV two more weeks but they have said that 3 times.  I am concerned about the length of time it is taking versus what they said it would take.  Has anyone else heard that they are promoting somewhere around $4000 or $4500 an acre and around 18% in royalties.  I have also heard people in the area  say that those per acre prices will start coming down as the companies expand into Trumbull County.  We have had interest at $1500 to $2000 per acre and 15% royalties and the ALOV proposal has more but I am not sure if it will really come true.

Views: 37565

Replies to This Discussion

Permalink Reply by Tanya Gabriele on October 2, 2011 at 1:00am

After reading much of the information provided by this site, it would be nice to see what type of specifications exist within the contracts.  The rights of the property owner and protecting our environment are important.  $2500 may seem a lot--for now--but may be just a drop in the bucket later.

 

Permalink Reply by Jeff Cleer on October 2, 2011 at 1:20am
I think we all need to calm down just a bit. We signed with the ALOV because of what they brought to the table. I AM NOT an attorney, so for me to comment on the legalities of it would be remiss. But I trust that the contract that ALOV brings us will be the best for us and the environment.
Permalink Reply by Tanya Gabriele on October 2, 2011 at 1:26am
Hi.  I just briefly looked at ALOV's website.  It seems like a nice idea.  I think Trumbull County needs to form a similar consortium.
Permalink Reply by Jeff Cleer on October 2, 2011 at 1:36am
Tanya, there is a huge group of landowners from Trumbull that have already signed with the ALOV. It was a while ago at R.D. Banks Chevrolet. If by consortium you mean a Trumbull county spot on their web site, it will probably come after we sign. They have been working diligently to get us the best deal, and I think we'll have some solid info. very soon.
Permalink Reply by Tanya Gabriele on October 2, 2011 at 3:39pm
Thanks.  I didn't know that happened.  A consortium is a group.  Yes.  It would be nice if ALOV made a page on their site for Trumbull County.  I'm glad ALOV took the initiative to put together a group and a site.  The unity of land owners gives property owners more substance.  R.D. Banks?  Is that in Champion?  I wonder why they decided to meet there.  That's interesting.  Thanks again.
Permalink Reply by Susan Johnson on October 4, 2011 at 1:34am
I heard the same thing about the $4k per acre and anywhere from 17% to 18% in royalties.  My only concern with ALOV is that when you do get an update it is always - 2 more weeks with no specific details.  I know they have to be confidential negotiations but it is so hard to get a straight answer.  We have some legitimate offers from $1600 to $2200 per acre now - how much longer should you be willing to wait on ALOV?
Permalink Reply by Susan Johnson on October 17, 2011 at 9:32am
Can anyone tell me why the Wishgard lease is so bad?  There lease has a lot of the things that ALOV has on their lease posted on the internet.  Granted, ALOV has some addendums that Wishgard doesn't have.  But from what I can tell, Wishgard is paying and ALOV is not.  I am not sure what is true and what isn't.
Permalink Reply by Ed Ganelli on October 17, 2011 at 10:31am

Hi Susan!  This is by far the worse part of the WishGard lease, IMO:

 

LEASE DEVELOPMENT.  There is no implied covenant to drill, prevent drainage, further develop or market production within the primary term or any extension of term of this Lease.  There shall be no Leasehold forfeiture, termination, expiration or cancellation for failure to comply with said implied covenants.  Provisions herein, including, but not limited to the prescribed payments, constitute full compensation for the privileges herein granted.

 

That clause means basically that the landowner (many of whom are getting out of existing leases based upon violation of implied covenant - no drilling, etc.) can NOT depend on using this violation to get out of leases signed with WishGard.  This, along with other language in the WishGard lease such as not being allowed to go to court over the lease (MUST go to arbitration), makes it almost certain that the lease can NEVER be terminated, even with cause, by the landowner.

 

Also...ARE the WishGard leases paying?  With a 120 BUSINESS day payout (approximately 150 or so actual days), there is NO guarantee that anyone who signs a lease with WishGard will actually ever get paid...

Permalink Reply by Tanya Gabriele on October 17, 2011 at 4:53pm
Great work people.  What an awful clause.
Permalink Reply by Susan Johnson on October 18, 2011 at 1:00am
Thank you for the information on the lease development clause.  It is something to think about.  i also think there are a variety of companies out there promising big dollars and not paying, I don't think it is just Wishgard.  That is why we are reviewing our lease options with an Oil/Gas attorney.
Permalink Reply by Tanya Gabriele on October 18, 2011 at 3:17am
I think you are right Sue.  The content of the first sentence in the sample of the lease above seems like it is saying, "We aren't promising you anything."  In this day and age--if a clause doesn't doesn't clearly make sense to you in plan English, then there is something clearly wrong.
Permalink Reply by Adam Thomas on October 18, 2011 at 4:24pm

For anyone that is interested, There was a very interesing discussion pertaining to this lease on a discussion page that Mr. Ganelli had started. It is very clear in the discussion as to what the lease ACTUALLY READS. Do your homework. It is a comical discussion and proves that mr. Ganelli does not know what he is talking about when it comes to leasing. All the issues he addresses are FULLY EXPLAINED in his discussion in trumbull county on Wishgard. Look them up and decide for yourself.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service