I just read the farm and dairy article posted here from 12/18/18. I was instrumental in facilitating an amendment in another Columbia gas storage field where a bunch of landowners sued to try to break the old storage and production dual purpose leases. The plaintiffs ended up with an amendment much like the one the landowners who did not sue. When the lawsuit was initiated gas prices were high and the driller seemed excited to get going, but instead they were stalled by the lawsuit landowners. When prices were high butbut drill delayed, that is a cost and potentialphuge royalty loss our community may never realize. Pad development in our srtorage area is starting to pick up now that prices and cost have been stabilizing, and the driller recently was granted a forced pooling win against three landowners who did not sign a lease or amendment. All I'm saying here is attorneys can be great for advisement, however their advisement can also sometimes lead to unintended negative consequences. There is a reason they call a law practice a "practice". Be careful with your decisions. Good luck!
The first knox county leases were recorded in April of 2017. If all are the same 2 year initial term as mine that means in a few months Cabot will have to renew or release. With all of the activity well north of Knox county it will be interesting seeing who gets renewed or dropped . My largest holdings are at the extreme southern portion of the play. I am not expecting a renewal based upon what is known at this juncture.
2 things tell me Cabot’s wells are a bust
1. The price per acre hasn’t raised from the $25/acre in the past 2 plus years
2. There has been no competition leasing the area. Two men can keep a secret when one of them is dead. If the wells were economical the flippers would be leasing up the outskirts. :(
Know what you mean Gary.. We will know more come April when we find out if and where they renew leases. That they can not hide from. I guess you know that $25 per acre is just in the Columbia storage field? Other areas it is $100 for the I initial 2 years and $200 for the next 5.
The first leases were signed in September 2016 but were not recorded till April 2017 so they are either expired/not renewed or they could have been extended/paid up for the next 3 years. They like to hold onto the these as long as possible for obvious reasons. Look up some of the early signers and ask them if they were paid. They are probably your neighbors.
Unless someone is privy to Cabot’s intentions they most certainly will not disclose what they have or don’t have. At $44/barrel oil I would say they will cap the wells and leave it in the ground. I would.
Shows how much I know James, for some reason I thought they went into affect when recorded. I will check the auditors site and see if I know any of the early signers.
I imagine that end of Q2-Q3 2019, we will hear something from Cabot on their Ohio exploration. When the plan was to spend ~$75 mill on exploration and their Permian exploration was a bust, investors are going to want to see some sort of return on investment. May not be ideal pricing to produce at but they can always go back and drill more later while gaining some revenue now (if the wells are even capable of producing).
Cabot has filed for aa EPA permit to flare the Kamenik well so I guess this is good news . Devon Energy didn’t get that far back in 2012
With having years to be ready for this how is the Mohican group doing getting everyone a deal? After reading this thread sounds like the driller showed up but nobody was prepared. I've found a good way to make deals is to work on a good reasonable lease or addendum, only using attorneys to ensure the agreed upon is in good legal language, otherwise attorneys can set a bad tone. Someone was asleep at the wheel here. Y'all should have had a proactive community meeting with the driller and passed out comment cards asking for community inputs and concerns and then work those issues as best as possible into an amendment. The storage fields seem to be the biggest issue here, and those communities do not seem well prepared even after seemingly waiting and assuming the drilling will eventually work it's way over your way. Leadership is everything, and leadership does not always equal attorneys. Good luck but you guys have really missed an opportunity.