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Permalink Reply by Jack Straw on January 6, 2012 at 6:21am

I did a Google search with the fields "Cornell Holding" and Marcellus; no hits.

When a company does not have a website and when you cannot find a physical "street address" where they do business; these are not good signs.

The lure of the Marcellus (and Utica) Gold Rush seems to draw out a certain element.

My guess (and it is only a guess) is that Cornell Holding either are a "shell" company representing a much larger company (who does not wish to have their interest in your area known) - or, Cornell Holding are a "fly by night" outfit trying to pick up leases that they can flip (for a substancial profit).

LLC's and Inc.'s (with comforting sounding names) seem to be rapidly appearing; much as rats crawling out of a sewer at midnight.

My personal opinion is that I would only want to deal with a company that is listed on the New York or  the American Stock Exchanges.

My personal opinion is that I would only want to deal with a company that had the (very) deep pockets needed to drill those multi-million dollar horizontal Marcellus and Utica Shale wells.

All in my humble opinion.

One size fits most.

JS

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Permalink Reply by craig on January 6, 2012 at 7:01am

You hit the nail on the head Jack, pretty much as usual : )

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Permalink Reply by paleface on January 6, 2012 at 11:32am

 I agree with you Jack,there's alot more to it than just drilling a well.

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Permalink Reply by Jack Straw on January 6, 2012 at 12:05pm

To add to my earlier comments, another type of snake company that I have learned of is one that enlists individuals by promising to look after their interests by finding the best company to lease to.

In exchange, they take a substantial chunk of the sign-on bonus and a substantial chunk of royalties (in perpetuity).

To assure that they get their money, they set up an escrow account to which the bonus and royalties are automatically deposited into; they then "manage" the money. They promise to dole out a portion to the owner of the Mineral Rights - sometimes only one annual payment (in arrears).

There is no lack of ingenuity; not when it comes to schemes to fleece the trusting/gullible.

All in my humble opinion.

 

JS

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Permalink Reply by Jim Litwinowicz on January 7, 2012 at 8:58am

Jack, I know of two attorneys holding meetings saying they are forming a landowners group.They will negotiate a lease for 5% of the bonus.  But in the fine print of the landowner agreement, it states that the attorneys are also allowed to receive fees from the gas company.

That means they might make $150 from the landowner on a %3000 dollar lease but make even more from the gas company..... on the same lease.  That seems like a huge conflict of interest to me! Even if it is legal, it sure isn't ethical!

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