New tactic by gas companies?

A coworker has 270 acres 25 miles west of Wheeling WV.  He's in the wet gas region of the Marcellus shale.  Anyway, his lease is going to runout in 10 months without activity.  He got a call from his lease holder, name unknown to me, offering him $14K per acre to buy his whole royalty out.  He said maybe for $30K an acre he'd think about it.  Apparently the drilling companies are taking advantage of the fact that the Marcellus region is populated with a lot of old folks who need money now rather that wait.  I don't know if this is a new tactic or not.  My coworker is only 35 years old so he is not inclined to take the deal but I bet there's plenty of folks who will.

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Permalink Reply by mark o on January 28, 2012 at 4:24am

i have 9o acres in the wet gas area.  sold for 14k per acre in a minute>>>>would not even hesitate.

Permalink Reply by Finnbear on January 28, 2012 at 8:03am

Same here. I have 155 ac and I'm ready to sign if anyone has their checkbook ready.

$2.17 million today vs ?????????? spread out over the rest of my life and maybe my children's?

The choice is obvious if you take into consideration the time value of money.

Permalink Reply by Linda A on January 28, 2012 at 4:27am

With all these offers and rumors and who knows what will happen.  People should consider their age and current circumstances, because someone in their 60's and 70's etc may not see 'future' royalties.  When people become TOO greedy, often times they loose it all.  There is nothing wrong with making a good deal as well as allowing the next person to profit as well, and feel good about it.  And, the value of the dollar continues to decrease so a dollar today could be worth four tomorrow... An understanding of flat money is helpful as well.

So, if you take a good offer today, and invest in physical silver and or gold, you will hedge any losses by the printing of more paper money.  History proves that over and over...

Greed will steal more from you than a thief in the night!

Permalink Reply by Joe on January 28, 2012 at 5:27am

I haven't seen one comment about your children, grandchildren or your great grandchildren s future. It's harder to blow security if it's in the ground and feed out in monthly checks. How many lottery winners were able to hold on to the money? Any cash left over when you die won't take long to blow by your heirs. Most can't hold on to their money let alone make money with it. Giving your heirs a monthly check may be the difference in getting an education or not. Have you seen the price of tuition lately? Education is most important aspect to making money. I'm talking about the school of hard knocks too, but college is easier and better. Does everyone here have the dollar signs in their eyes, Me Me Me it's all about me?

Permalink Reply by Linda A on January 28, 2012 at 5:44am

There is no guarantee your children will use the money wisely, or for education unless you set up a trust and stipulate it can only be used for that purpose.  What control do you have over them using it for drugs?  That could be managed in a trust as well.  Kids today have grown up in a different society than we did - make no mistake - morality and responsibility have greatly declined, through no fault of their own - it's pushed on them every day in school and on TV.

People who do not 'make' money themselves, never appreciate it, don't know how to handle it, and squander it...  Education is key, but it does not need to be a 'formal' education unless you need a degree to become a doc, lawer, etc.  I cite Steve Jobs as only one example here.  Ever read, 'Millionaire Drop Outs'?  Do what you love, educate yourself along those lines, hang out with like-minded people.  What good is a job you hate if you keep it only for the money?  Start out with the understanding of going with your passion and skill to be happy.  One daughter and son-in-law (and their parents), spent thousands on college, both graduated, but don't use that 'formal' education.  They train and show horses, their natural love and talent, and love every minute of it, AND are successful at making a good living!

Napolian Hill, in one of his books, and who lived through the Great Depression, noted this:

'After the stock market crash, three of his friends committed suicide.  One shot himself the other two jumped from buildings'. Mr. Hill, who was a self-maid man, chose to start over, because he had previously became wealthy, made his own money and knew he could do it again.  Those who didn't EARN their wealth, had no idea how to bet it back...  Lottery/inheritance/gas lease money is not earned.  Ever notice those who gamble can least afford it?  Greed drives them and they forget about their own well-being.  We owe our children a good life and an education, if they choose.  After that, we want them to make their own way - and the only way to learn is from making and correcting our own mistakes.

Beware of the green-eyed monster because he will steal your life with greed.

BTW, this is Linda Anthony

015334grltd9mPermalink Reply by 015334grltd9m on January 29, 2012 at 7:15am

I'm glad my parents gave me nothing (now I'm 51 and inheriting land in Asia) so I went on my own with nothing and now I led my investors into land acquisition when many laughed.  I didn't know wet gas was down there but I did VALUE those little clinton gas wells and of course land.

Permalink Reply by Linda A on January 29, 2012 at 7:42am

years ago my grandfather was in the coal business, amassed about 2000 acres, gas (shallow of course) and timber were sold.  He sold the coal rights for $100K (BIG money back in the late 70's, and sold the surface to the PA state game commission (can't remember how much).  Had he held on to it, and left it to his heirs, it would have been worth millions.  ALL the coal has been stripped from it, and half the mountain is gone. The truth is, we don't know what we don't know and cannot see into the future.  They enjoyed the money then, which enhanced the quality of their lives.  I often wonder what he would have thought about what eventually happened...

We've all had successful lives and yet can still chuckle about the 'what if's' LOL

He saved 2.2 acres of that land, gave it to me, and am just now going to sell.  Would make a great place for a hunting cabin -NO neighbors!

Permalink Reply by Finnbear on January 29, 2012 at 8:20am

The 2.2 acres is next to PA State game lands? What part of the state?

Permalink Reply by Linda A on January 29, 2012 at 8:29am

Indiana County, Brush Valley Township, Brush Valley, PA - along Rt. 954 just before Snyder Rd.  - 300 ft frontage, no logging since we owned it, since about 1980... no mineral rights, of course...

State game lands boarders one side and along the back, and then the road is third side.  There is a small area before Snyder Rd. which is not ours, but there is nothing on it except a small gas well (Guess my grandad didn't get THAT little piece - LOL)

Permalink Reply by Finnbear on January 29, 2012 at 11:50am

OK. We sold our family camp a couple years ago. I'd like to have one of my own somewhere near the Clarion in the Elk, Jefferson, Forest county area

Permalink Reply by Linda A on January 29, 2012 at 12:02pm

covered all those counties for HealthAmerica (provider relations) - Miller Bros Furniture owners are my cousins so I worked for them a short while also.  Really like Jefferson and Elk counties...  sorry it's not in your desired area...

Permalink Reply by Finnbear on January 29, 2012 at 12:53pm

I've spent a lot of time hunting, fishing, and camping in that area since the early 1970's. I love the woods and the river over there. I really miss it since we sold our family camp. Too many people involved and the family situation changed when Grandpa moved to a nursing home so it had to be sold. it wasn't the right time for me to buy it then. I hope to get back there in the future in a camp of my own.

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