Organize Kentucky Landowners

It seems we have a new entity to know in town, seems very similar to the carpetbaggers we have become familiar with associated in the coal and timber industries.

My sister was approached by a 'land agent' for Gulfland Appalachian Energy

( President Ashley Elizabeth Gremillion:  registered 1 yr 4 mo ago, located beside the US Corps of engineers ofc in Louisa, KY)

Gulfland Appalachian  Energy  is associated with Gulf Land and Seismic / or Gulf Land & Seismic LLC registered 2 yr, 4 mo ago and based at 5859 Vicksburg St New Orleans, LA 70124

The land agent presented a card which also references Cimarex, a Multitude of co named Cimarex are located in TX, OK and CO... Cimarex also registered in Frankfort within the last 2 years... A Cimarex co worked with UK and KY geological survey for a report dated April 24, 2013, which featured Lawrence and Johnson Counties in E KY.

The land agent indicated to my sister that a landowner ( an elderly widow) nearby to our family property had already signed with his co.

I would be most interested in

1) Educating myself and family on the oil/gas/lease/royalty situation and determining quality trustworthy players

2) getting a KY landowner group organized to challenge carpetbagger practices which may arise

Thanks so much

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Permalink Reply by bob on August 17, 2014 at 11:05am

Approached by same company recently for a lease in Johnson county. Would be good to get a group started for Johnson and Lawrence county to help everyone if you are still on here. Have learned quite a lot here the last week or so.

Permalink Reply by bob on August 17, 2014 at 2:37pm

Group being setup to share information on all things oil and gas in Johnson and Lawrence county KY.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 17, 2014 at 5:17pm

Sandra,

     Gulfland has written me 3 times, twice with offers and once to see if anyone was home.

I pictured Gulfland as being a guy sitting in his kitchen copying old leases and going about the hills telling stories to try and get a signature.

What he will do with each poor lease he cons someone into signing is sell it to a larger company or a driller.

I own land in WV across the border there in Wayne County. If you look up the Rome Trough you'll find it was an ancient ocean that almost always existed in each period of history depositing 16 oil and gas plays in the trough. The Rome Trough starts in TN, passes through Pike County KY, Wayne, Lincoln, Cabell, Boone Counties in WV, and on up diagonally into PA (Greene County) then on up into NY and Canada.

Do an on line search for a copy of the Kentucky Minerals Brochure, which describes each of the 16 plays in Pike County KY. I have a copy if you can't find it. Also search for: Map Of Rome Trough and you'll see plenty of county/state maps of where the trough runs.

If I remember correctly, Gulfland offered $80 an acre signing bonus and 12.5% Net. For the Rome Trough the starting bonus should be $8,000 an acre and 20% Gross Royalty, but I'll be looking for a 25% Royalty since I know better.

With all the drilling in Ohio, when the drillers get comfortable with the deeper depths, they will head for the Trough where the real gold is waiting.

I'll add another post from yesterday where someone else was in the Rome Trough in WV and was new at the O&G game.

Permalink Reply by Sandra Wattenberger on August 20, 2014 at 5:33am

Ron - Picture "Mr Gulfland" as a team of geologists, lawyers and drillers sitting in a Colorado or Houston or Lafayette, La, office planning strategy. This is an old game we in KY have been playing for a couple hundred years now - Gulfland/Cimarex are the newcomers here. They will send a very personable, charming "land agent" to make inquiries, much as  Mayo would send a guy with a six-pack of soda pop to apologize for stealing thousands of board feet of timber or coal "by mistake".

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 17, 2014 at 5:26pm

Sandra,

Yesterdays response to Lonnie in WV a few counties below Greene Co PA.

Lonnie,

      Don't sign anything. You are in the Rome Trough which is known to contain 16 different Oil and Gas Plays. Expect to see the same prices for bonuses & royalties as Greene County PA.

Today in Greene County PA they are getting $6,000 an acre bonus and 20% Royalty (Rice Energy)

This is a good place to start your education. Find a land group or a lawyer who is representing landowners since the more people that put their acreage together, the more bonus and royalty you will make.

In Columbiana County Ohio, it was said at a meeting "$2,000 an acre bonus is like a 10 point buck, it may be out there somewhere but no one has seen it". Within a year the bonus was $2,500 an acre then $5,600 an acre 6 months later.

You are about to find out that people who want your wealth will lie, cheat and steal. Its the law of the land in the oil and gas business.

Trust no one who comes to your door. Take their documents and send them on their way.Sign nothing without having a lawyer or someone well versed in that document reviewing it first.

Welcome to the GAME! Play smart and you will have no regrets in the leasing stage of the game.

Permalink Reply by bob on August 18, 2014 at 4:06am

Ron

Gulfland offered $200.00 an acre,5yr lease,5yr option. After research on here and other sites the last week or so I know better! I also have heard of other offers from them at $300.00 an acre.  

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 18, 2014 at 10:49am

Good for you Bob.  Your neighbors will be less fortunate due to the mentality that leases are goof for a few buck then no one drills. I've heard of $1 per acre leases signed by relatives.

It appears that the drilling will happen for most of us, so it's a smart move to get the best lease, bonus and royalty. Leases are getting harder to break, since O&G companies want to keep the minerals until they are ready to drill, without paying a fee.

One producer has a secondary term in his leases that requires no production, royalty or payments. All they have to do is prepare to drill for the rest of eternity in order to keep the lease active. I don't think that will hold up in court since a producer has to either pay a fee to the landowner or produce a product from the well in "Sufficient Paying Quantities", whatever amount that is.

Take a look at the website  alov.us   bottom of the page pdf SURE Lease March 2012 which is the lease a large number of people in Columbiana & Carroll County OH signed. You could call it the Cadillac of Leases.  There is also info for pipeline right of ways, and seismic testing forms.

Permalink Reply by bob on August 18, 2014 at 2:11pm

Ron

Already have been there and downloaded the lease pdf. Also have passed that info along to others.

I remember seeing one of your posts that spoke of a study of eastern ky minerals by the usgs and ky. I think you said it was a searchable document and you mentioned certain pages. But for the life of me I can not find that post now.

 

Permalink Reply by Sandra Wattenberger on August 20, 2014 at 5:23am

Bob- The Kentucky Geological Survey (KGS) at UK has a database of searchable maps, reports and permits on file. Fascinating.

SW

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 20, 2014 at 9:46am

Bob,

   Here is the title of the document and who produced it. Try another search.

Kentucky   Reasonably Foreseeable Development Scenario For Fluid Minerals

Prepared For:  U.S Department Of The Interior  Bureau Of Land Management Eastern States

Jackson Field Office

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 20, 2014 at 9:53am

Now I see you found it earlier, and put it in your KY J&L Counties Group.

Permalink Reply by bob on August 20, 2014 at 10:13am

Yes, thanks Ron. Remembered it was on the comment wall on your Wayne County page.

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