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Permalink Reply by Jack Straw on June 30, 2014 at 1:09pm

What Township is your 59 acres located in?

Jefferson County is Dry Gas for the Marcellus; the activity has moved to the Wet Areas of the Marcellus, the most prolific Dry Gas areas of the Marcellus, and on to the Utica in OH.

Also, I suspect that much of Jefferson County might be constrained by the ability to get much more gas to market.

Not trying to 'trash talk' the area; just suspect that its day has yet to come .... and may await $6+ Natural Gas prices and more pipeline infrastructure.

With respect to selling mineral rights, I personally would advise against it .... you get pennies on the potential future dollars .... and you essentially lose control over the surface; as the holder of the mineral rights has the right to extract those minerals, as they feel free. That said, I understand that Snyder Bros. are offering (a paltry) $1000/acre.

With respect to leasing, I would determine who has the neighboring properties under lease .... they are potentially who might have the most interest in your area.

With the current limited activity in Jefferson County, PA; I would not be in a great hurry to lease. Better times may be a year or three away. Right now, it is a buyers market.

Please, do not sign a lease unless you have an Atty. with O&G knowledge read over the lease (you might need to go to Clearfield or other adjoining counties to obtain expertise).

Again, if you post your township, someone here might be able to provide more useful specific information than my above banal generalities.

All IMHO,

                 JS

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Permalink Reply by Get some on July 1, 2014 at 4:10am

Jack, thanks for the info. The property is in Bell Township PA. Snyder Bros. has my current lease and is going to let it expire, they used one year of the extension but they are not going to re up it this year. I know Consol is active in the area with a few wells in and a pipeline going in about 3 miles from me. I have been in contact with them but the want a 10 year lease.

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Permalink Reply by Jack Straw on July 1, 2014 at 6:06am

I am aware that Consol have a strong acreage position in Southern Bell Township and Gaskill Township (and adjoining areas to the South in Indiana County).

I would like to correct an earlier statement "Please, do not sign a lease unless you have an Atty. with O&G knowledge read over the lease (you might need to go to Clearfield or other adjoining counties to obtain expertise)."

That should have read "Please, do not sign a lease unless you have an Atty. with O&G knowledge read over the lease (you might need to go to INDIANA or other adjoining counties to obtain expertise)."

If Consol want a 10 year lease, that is very suggestive as to the time scale at which Consol anticipate coming back to the area - all subject to change, dependent upon infrastructure and the price of Natural Gas.

For Infrastructure, there is the Dominion Pipeline that runs south of Cloe Lake and South of Big Run.

I do not know how much spare capacity there is in the Dominion Pipeline (nor do I know what hub that gas goes into, for current pricing). I do not know what sort of pressures the Dominion Pipeline (actually three parallel pipelines, the oldest being 50+ years old) can handle. With existing ROW, I keep expecting that Dominion will upgrade by additional pipeline, or replacing the oldest pipeline with a new, larger, higher pressure pipeline.

Obviously, what you should best do depends upon your personal situation; at my age, ten years could be a lifetime. I keep hoping that events will unfold much sooner than that.

Right now, I suspect a lot ..... but know little.

All IMHO,

                   JS

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Permalink Reply by Get some on July 1, 2014 at 7:50am

The Dominion pipeline is on a neighboring property and is only about a 2000 feet from my property. Thanks again for all the info, I'm going to keep digging for info and trying to get in contact with people but it looks like my best bet is going to be to hold out for a few years. 

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Permalink Reply by farmgas on July 1, 2014 at 10:45am

Jack...you seem to be aware of activity in this area of Jefferson County, Pa.   Are you from this area?

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Permalink Reply by farmgas on January 28, 2015 at 10:21am

Jack or other contributors,  I saw a huge rig on the ridge off Rte, 119 today just north of Big Run.  Anyone know who it belongs to and what their plan is?

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Permalink Reply by Get some on January 30, 2015 at 10:46am

Farmgas, I believe that is a Consol location. I have been in contact with them about leasing my property and they mentioned that rig and said they are waiting to see how that well does before they make a decision on my property.

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Permalink Reply by farmgas on February 2, 2015 at 4:37am

Get Some, is your property near the Nardell location?  In the latest Consol report in their website, it indicates two wells to be drilled at Nardell.   Any other new pad locations planned in the area?

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