Replies to This Discussion

Permalink Reply by Dan on March 30, 2012 at 10:15am

Yes you have that right. Some one correct me if I'm wrong but I believe the Trumbull County ALOV group paid ~$60 to join. Renting meeting halls not cheap.

Buckeye Mineral will be working with the Eastern Ashtabula Landowners Association group.

Permalink Reply by myles fetterhoff on March 30, 2012 at 4:21pm

someone either made 8000,000 or 8 million off the deal.

Permalink Reply by Utica Shale on April 9, 2012 at 5:31am

Myles,

 

" ... someone either made 8000,000 or 8 million off the deal ..."

 

Who ?

 

Permalink Reply by myles fetterhoff on March 30, 2012 at 4:53am

someone help with my questions?

Permalink Reply by Victor Sutton on March 30, 2012 at 9:10am

Myles:

Happened at Nov. Mtg. at Packard Music Hall.

Signed in Nov.

Good thru May.  (I believe)

No.

Permalink Reply by James Kerns on April 10, 2012 at 11:37pm

Hello , Just adding my two cents worth to the discussion, i have been a member of this site since around june of 11, their is a learning curve for all landowners new to this site and learning about the shale play, but i will say this as well.

A great deal of good information along with baseless opinion and alot of mis-information, can be had for free here and on many other sites dealing with this subject. Remeber this site is read and monitored by people worldwide, i would hesitate to show my ignorance in the way many people have done here, over the past year, not naming names.

Many of you would be better served if you asked less questions seeking to be handed priceless pearls of information, and better off to sift your own sand and come up with your own answers and conclusions.

ALOV is a good group of people that have done a tremendous service to all people involved in this shale play across several states, and not just to the members of five different groups this past year and a half or so that they have gotten lease deals done for them for a mere $60 application fee coming from their pocket.

ALOV has not been good with holding our hands and keeping us up to date on the process step by step, but they have delivered, each time the best money deal AT THE CURRENT TIME, and by hands down the most even handed lease language i have examined from the  28 years off and on that i have been involved  with in the O&G business, both as an employee, a student, and having many close friends that have made this business their career. The lease language is not perfect but had ALOV never been established, the chances of any landowner been treated fairly, would be very questionable at all, say what you will!

 ALOV set the bar and other's rode in on the coat-tail's and then worked from there to try to differentiate themselves and attain better terms.

The Trumbull county group of landowners signing with BP this week i believe contain both ALOV members, at $60 a head, and the spin-off, for profit group, Buckeye Mineral, at a percentage of their "Bonus Money". The lease is again not the perfect, give all to the landowner, but try to come up with a better lease, and get a company to sign it, then come talk to me and show me the paycheck.

The money and percentage of royalty is less than many incuding myself would like, but to turn it down would have resulted in what next for us? I believe it being BP and not Chesapeake, we will be unitized and drilled earlier than some, but we will still be waiting for pipeline.

I for one did not just sit by and wait for ALOV to deliver me a miracle. I was actively educating myself more on the subject and marketing my property, by making calls to the different company's and asking around.

The leasing prospects had stalled, not because of County Lines and Geology, but over Money, bottom line. The O&G companies were and still are, posturing, its all a big game to them, a money game. They do monitor this site and the other forums like this, to check our temperatures and guage our desperation for new working capital, meaning CASH and willingness to deal.

The thing about the shale play is this, the paydirt is pretty much there across the right depths, the whole thermall maturity and TOC zone, maybe in different quantity or across the oil, to wet gas and oil, to mostly dry gas range, but their will be very few truly dry holes, unless a driller really screws up.

The drilling has been done so far pretty much the same way they drill every new play. They drill the first well, if its good, they drill another nearby and see if they can get the same result, then try to determine the extent of the play, the furthest reaches, then they try to determine the sweet spot's, and fill in and connect the dots with more well's.

The county lines come into play because of local politics, unemployment levels, and other economic factors. They are in the business of spending the least to aquire the leases and get a free hand with all of the acreage, to do as they please. Because of the internet and other resources, we landowners have done a better job educating ourselves on the play, than maybe some other generations had been able to do in the more traditional plays, and we worked hard to get the fairest treatment we could get and not have them walk away from the table. HORSE TRADING is an art form, if you cant negotiate from a position of strength, you will get taken.

As always i wish the best of luck and good fortune to all my fellow landowners in this area and others. This will be a big shot in the arm for our economy but we must hold these company's accountable and remain vigilent that they run a clean operation, we must stand up to them on each and every point, and hold them to the task, for the sake of all and the next generation as well.

Respectfully, Jim

Permalink Reply by J T on April 11, 2012 at 12:50am

Well said Jim, I agree wholeheartedly. I signed yesterday by my count the third landowner, can't wait to see how fast things go from here. I was elated (and I told them so) it was BP. The starting line is now no further than 25 miles away (I am in the north of the county) instead of waiting on 4 or 5 countys to get drilled by one company, BP will start in Trumbull. It was a better deal than I could have gotten myself and the fee was less than my lawyer charged me to read and discuss it. If I never get a well my bonus was more than I had, I am not a big player but I rode in on the groups coat tails. This valley needed this money and no matter who anybody here signs with they are going to spend money here in the valley. Jobs are coming. Good luck to everyone nomatter what you do. For me it was a good deal.

Permalink Reply by James Kerns on April 11, 2012 at 1:35am

Thanks John,

I tried to edit and add a few more comments and repost as a new discussion, but again it was not without mistakes as i never did learn to type properly and never did win any spelling B's either.

 So many here like to second guess everything, they don't believe the real deal when it presents itself, but want to believe every BS artist around.

 We have had several credible geologists present themselves here and no one asked any pertinent questions of them, we have had drillers who did not hide behind sign-on names, and again they got nothing but negative press, but the propaganda and the wry humor gets the press and arm-chair drillers abound. I kept quite for quite a while because i did not have the time or interest in getting caught up in meaningless speculation or argument, but i did stop by to read up on what was being posted, scanning the headlines as it were.

I also believe this is a good deal, even with my contacts in the industry and the fact that i have actively marketed my property to O&G company's for the past eighteen years in hopes of signing a good Equitable lease, i could do no better to date than this deal with ALOV.

 I leave this as my last post before i sign my lease with BP on Friday, the thirteenth, good thing i am not superstitious.  again i wish the very best of luck to all who read this (and even those that do not, lol). Jim

Permalink Reply by Depolarized Farmer on April 11, 2012 at 8:46am

Jim, yours is a very fair assessment.  Thanks for bringing balance.  I agree that ALOV got an attractive deal with BP...  maybe not "phenomenal", but far better than any of us could ever have hoped to negotiate on our own.  The fact that the driller is BP (with all its acreage concentrated here in Trumbull) is a significant advantage for us vs. those leased with CHK (not that I'm anti-CHK).  And it's important to note that BP wouldn't have come without ALOV's huge acreage total.  ALOV has been a blessing to us all, and hopefully a permanent game-changer in the way leasing progresses into the future.  Generations of landowners to come will owe a great debt to Mr. Bob Rea.

Permalink Reply by Depolarized Farmer on April 13, 2012 at 11:27am

Unless BP expands its geographic footprint, its sole area of focus is presently Trumbull.  They have 5 years to drill the Trumbull ALOV acreage, none of which is held by production.  And BP has the financial resources to get the job done (assuming they hit the NGL's and oil they are after).  As far as infrastructure (pipeline) goes, they are in the same boat as CHK and others...  pipelines will take time to develop.  A big advantage BP enjoys is that it owns / operates its own oil refinery in Toledo.  When it comes to getting the product to market, BP is the "market".  I don't think it will be too difficult for them to get access to existing oil pipelines / ROW that already run through the southwestern part of Trumbull and connect to Toledo (see attached pipeline map).

I admire what CHK is attempting to do, but it doesn't appear that they have enough resources or rigs to drill all of the 1.2 million plus acres they've acquired.  Their interests are spread across so many counties here in Ohio and in Pennsylvania (I'm guessing 16 to 18 counties in Ohio alone?).  Bottom line, I'm confident that BP will drill a whole lot more wells in Trumbull during the next 5 years than CHK could have hoped to.

Attachments:

• Pipelines & Gas Storage in Ohio.pdf, 1.3 MB

Permalink Reply by tomvargo706 on April 11, 2012 at 12:38pm

Unless im missing something, the Buckeye Mineral "spin-off' group is not signing this week. I belong to the Buckeye Mineral Group and the only letter I received was one a couple weeks ago stating that they will be contacting me soon to have a meeting for the Buckeye Mineral Group discussing the terms of the deal that they discussed in the ALOV group meeting.  So far I have heard nothing else so my assumption is that they will probably wait until after the ALOV group signs this week.

Anyone know of something different that belong to Buckeye Mineral?

Permalink Reply by john p halloran on April 11, 2012 at 1:10pm

There is a bit of confusion going on,because of the number of different names,after the trumbull co group,alov trumbull co, the leader,Bob Rea,went from a non-profit entity to profit entity named Buckeye Mineral Development.Buckeye Mineral Development is forming a group in ashtabula co, called the eala group, which is asking 2 3/4% of the upfront mineral leasing rights payment. I do think that is a reasonable sum for the amount of time and money that has to paid out to put these contracts together.

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