Recent Offers in the Marcellus Shale

State your

1. State
2. County
2. Lease Bonus Offer
3. Royalty %
4. Terms (length of the lease)

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Permalink Reply by Mike C. on December 3, 2010 at 7:14am
Being had is not always a bad thing. For every county where prices climbed from $1500 to $3000 to $5000 there are two counties where prices went from $750 to $1500 to $300 or $0. This whole process is a gamble. Get yourself good terms and when you think you should pull the trigger do so. Just keep in mind there is nothing guaranteed until you have a check in hand.
Permalink Reply by Brett R Oxley on December 3, 2010 at 7:23am
Thank You.

I just got off the phone with the County Health Department and they are going to sample both my well and my pond. $200.00. Do not yet know if that is for both or each, but still it is a cheap insurance policy to have that data in hand prior to litigation needs if any.

I will be actively monitoring all the sites and forums and trying to get smarter on this. If I get any good news legally, or bad news of any kind I will post it.
Permalink Reply by JK on December 3, 2010 at 9:58am
Joe that story about the mother in the nursing home is from the article 11/28/10 in the Dominion Post, page 4B.
Permalink Reply by Sam Douglass on December 6, 2010 at 3:26pm
If you do not have a lawyer, get one.
Permalink Reply by Brett R Oxley on December 7, 2010 at 1:38am
I spoke with the Chesapeake representative today. They are the one's drilling in my backyard and are the ones purchasing all of the leases in the areas to be affected. The rep stated that they have already begun testing wells and ponds in the area to establish a benchmark of what the water is like right now. This is being done fully at their expense.

The rep further stated that the rig will be coming down soon as they have nearly reached the depth they want. The rep confirmed my hunch that indeed the testing and exploratory research came back very positive for this area. That is why they drilled here and leased up most of the area so fast. We are also very close to a high pressure gas main, it runs between my property line and the well property. We are also within 2 miles of a major interstate, so as always location, location, location.

I would like to hear from, others whom have had a well dug in their area as to any issues that have surfaced.

I would like to hear from others concenring how long after the well was drilled, then put into production before they saw any financial returns.

I would like to know more about leasing pitfall language to be aware of, or favorable terms to insist on.

I spoke with the Ohio, Mahoning County board of Health and they charge $100.00 for a basic test, but they are working with Penn State University to broaden their water testing to include all of the viable chemicals tests that we all need to be concerned with, when a well is being drilled in the area.

That expanded test will be clarified in the next two weeks and they believe the cost for the expanded test, conducted by an independent firm will cost $300.00. I am going to wait for two more weeks and pay for the expanded test. Having that data is a good insurance policy for the future, should the water become an issue.
Permalink Reply by Joe Smith on December 7, 2010 at 2:22am
Sounds to me, you only have a vertical well so far. Over here in Jefferson County, Exco drilled the vertical wells, tested, good results, but capped and moved on to drill more wells elsewhere. Every Situation is different as you mentioned about pipelines nearby. If a new rig, latteral drilling rig, moves in next, then you will see some royalty money in accordance with the timeframe stated in your lease.
Permalink Reply by Brett R Oxley on December 7, 2010 at 2:30am
Thanks, I will be on the lookout for that rig once this one comes down.

Does anyone have a photo of what a lateral drilling rig looks like? I will go online and try to find a photo myself too.
Permalink Reply by Brett R Oxley on December 7, 2010 at 2:42am
I attached a link with details and a photo of a horizontal drilling rig.

http://www.waytogoto.com/wiki/index.php/Horizontal_drilling
Permalink Reply by MonBel O & G Landowner Watchman on December 11, 2010 at 9:13pm

Joe, unless the terminology in the lease is correct, and if the land is pooled, that drilling and capping can tie up the land forever. Not saying this is the case, but Ohio Law allows this and it can and is happening according to someone whom I just spoke with this evening. You can have thousands of acres leased, pooled and drill a few wells within the pool just to hold the lease until you wanted to sell or produce it.

Permalink Reply by dr j on December 7, 2010 at 7:42am
Brett,

I do believe Columbiana County has already put together a mult-tiered package for water testing. I think the cost was comparable. You could contact the County Health Department for info.
Permalink Reply by Brett R Oxley on December 7, 2010 at 8:08am
The link to Columbiana County testing and fee schedule is below. They seem to be a lot higher than what I was told Mahoning County is planning on charging.

To find the link yourself go to Columbiana County Board of Health website, look down the left hand column under Environmental Services, click on the last line that says "Private Water Monitoring Program" and that pulls up all the levels of water testing they do and their differing costs and actions.


http://www.columbiana-health.org/privatewater.html
Permalink Reply by MonBel O & G Landowner Watchman on December 11, 2010 at 9:17pm

In Ohio, the permit can be held for two years without drilling.

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