To Lease or Not to Lease: Has Anyone NOT signed a lease? I'd like to hear why you didn't

My wife and I are part of a landowners group that is in the process of having their Range Resources contract reviewed by attorneys.  We only have 3.2 acres and have not decided whether we are actually going to sign a lease.  I am curious to hear from people who started to go through the process and then at some point decided against it.  I'd like to hear your reasons.  FYI - I'm not posting this so I can attack people's decisions.  I am genuinely interested in hearing from people who decided not to sign a lease.  

 

Thanks in advance!

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Permalink Reply by Jonathan A Jones on September 22, 2011 at 1:27pm
We understand that we don't have much bargaining power and that if we don't sign, that will pretty much be our only shot at seeing some financial gain out of this.  My wife and I both have been blessed with good careers so even though more money is always better, we're not sure if the amount we would be getting is worth the possible negative impacts it could have on our area.  Having said that though, it's not like we would be avoiding it if we DIDN'T sign.  Everyone around us has.
Permalink Reply by Jonathan A Jones on September 22, 2011 at 1:37pm
In response to your comment - I do believe that we need to find other alternative sources of energy that do not involve its transportation from the middle east.  However, I think that we need to temper that drive to utilize national resources in a manner that is safe and profitable.  I know that often times those two concepts seem mutually exclusive but I think through some smart legislation and new technologies we can bridge that gap.
Permalink Reply by Barbara on September 25, 2011 at 5:37pm
and with that small amount of land, whatever is done around you will be impacting you, lease or no lease.
Permalink Reply by Barbara on October 26, 2011 at 12:03pm
there have been state meetings regarding the gas/oil industry being declared a 'utility'..................................and this would open the flood gates to emmenent domain.  sorry i don't have links to any of this, but i'm sure you can find it somewhere on-line.  scary.
Permalink Reply by Jonathan A Jones on October 26, 2011 at 12:50pm
At one of the meetings with Range Resources they talked a little about this.  There are a lot of regulations once you become a utility company.  They wanted no part of this.
Permalink Reply by mike on September 22, 2011 at 12:44pm
In the same boat have 113.acre was in a group but didnt sign. They want it all and I want to sign different depths hope to sign in future.
Permalink Reply by Jonathan A Jones on September 22, 2011 at 1:38pm

Range Resources will not entertain a contract that limits them to specific resources at specific depths.  They want surface to core.  I'm not a fan of this and most of what I read said that you should call out what they can and can't take, including any heavy hydrocarbons they are able to separate out from the raw gas.

Our quandry is more related to the safety of the whole process.  I am fairly confident in the fracking process and the related engineering.  However, I have issues with the fact that we don't really know what all this drilling / fracking is going to do to our environment.  I am not a tree hugger, but I am practical and have tried to find information related to the safety of this whole process (pad creation, drilling, fracking, waste removal / disposal / storage).  Washington County and even some areas of Butler County (Connequenessing Twp) have reported some serious environmental issues related to the waste ponds and harmful chemicals showing up in the water.  That gives me enough pause to wonder if it's worth it at this stage.

Having said that - I'll revert to my previous response above and say that it's going to be in our area anyway so it's not like if I don't sign it's not coming.

Permalink Reply by Mickgyver on September 22, 2011 at 2:50pm
Hello at this point you are right . One thing is that in Ohio if most of your neighbors have signed and they really want to go through the area and you are in the middle of it with the state of Ohio a company can apply for the right to add you to the unit at which time you will be given royalties but maybe no bonus money,I don't know if all states have this law but I know the companies  are encouraged to try to get you to lease to them without forcing you against your will but ohio law allows this to happen . I have read only about 2% of the people have ever been forced to be into  a unit.I hope if there are problems that the companies will be made to cure them as fast as possible if possible . One thing for sure it will disrupt the wildlife for a while until they adapt to their new surroundings or move out to other places . Best wishes
Permalink Reply by Jonathan A Jones on September 22, 2011 at 11:32pm
As far as I know, there is no law like this in effect.  However, I believe one is making its rounds in Harrisburg.
Permalink Reply by craig on September 22, 2011 at 5:17pm

Jonathan,

When talking about the safety of the process keep in mind the fact that just about everything in the process is continually being upgraded with new knowledge or technology. Take waste water holding ponds....they are not being used anymore by some or all of the drillers. They have taken that previous problem (flowback holding ponds) out of the equation by re-using the vast majority of the flowback. Also, right now Chesapeake is testing a new mix of non-hazardous compounds in actual wells for fracking that do away with the current mix of the so-called problem 'chemicals'. 

I believe the changes have been happening faster recently because they are now drilling in a much more populated area then before which is constantly forcing their hand to find better solutions to their problems. We need to keep a watchful eye on them as well as our regulators and all will be fine.... Except when man and/or machine fail, which will occasionally happen regardless of how much effort is put forth to avoid it.

 

Permalink Reply by Barbara on September 25, 2011 at 5:35pm

there have been plenty of man/machine failures in bradford county pa thus far.........spills of diesel fuel, fracking water, gas leaks, and so much in the way of emissions from the actual equipment inc all the trucks used for transport of water and equipment.  roads have been destroyed.  water has been contaminated.

Yes, changes are happening........................................but ONLY AFTER some of the above happen.  there are MANY frackwater ponds in this county already................they do exist and are being used NOW.  the failure of well casings HAS happened....and due to poor quality materials, which the companies don't find............the failures find, and the inspectors find. 

 

so please don't talk about how wonderful this all is.   it is NOT all wonderful.  chesapeake is who told me that the 'fresh water' they wanted to run through my land was actually frack water with only four chemicals removed at the well site......after  questioning from me, a definition of 'fresh water' far from what i would ever have given.  do not be fooled by the words used; the process of gas retrieval is moving as fast as the companies can move; speed does not promote careful study.  and out west, where this has been going on longer than here in the east?  out there they haye HUGE problems of structure and pollution of many types. 

 

one does not have to have been 'born' into not liking gas field development.  this is real and now and IS NOT without many risks which will forever change this area of the planet.  i do not believe this whole thing can be stopped; i do believe there are some things landowners can do to protect their own property/selves to some extent; the bottom line is that the gas industry is in charge, we are mere pawns, and whatever we do, sign or not, with care or not, the region is still going to be pocked with well sites and some type of frack water disposal, access roads, compressors and pig launchers/receivers, etc..  and the extra traffic and personnel will be with us for many years before the boom dies down.  and then we can all feel the pain of loss of income here again.

the concerns are not about 'treehugging' but rather about breathing and drinking and growing things in the soil by PEOPLE who live here. any and all study and care that can be brought to the process to keep safety for all foremost is so needed....as well as 'improvements' in process.....but BEFORE it is used and not after much harm has already been done.  'care/safety' means 'people hugging' much more than 'tree hugging'.....though it is certainly desirable to keep the trees alive as well as the people. that seems more about caring about our country than merely blindly endorsing any and all means to extract fossil fuels.

Permalink Reply by Mickgyver on September 25, 2011 at 6:32pm
It is very good that you provide the flip side of the coin in our new situation . It is sad that these things happen and we all need to learn from this to help make the leases more landowner friendly . I feel for those that got little initially because they may have had such need in their lives that they neglected to get educated enough to make a good decision . I know just in dealing with a few of the early birds that lock down the property (landmen ) that I have caught them in several lies trying to con myself and others into signing a long time ago . Only a fool would think that this resource information  about the shale gas was unknown until recently , but it is very easy to be convinced into a deal that offers such promised ewards . It is very easy to be drawn into what appears to be a  pot of gold when you don't look far enough at where the rainbow ends . We are sometimes blindsided when you think your decision is the right thing to maybe help better the lives of the ones you love dearly especially in this economy. I hope everyone considers these facts when they prepare the final leases which may affect you and yours for many decades . One thing I would like to understand more fully is how much ground particles of Uranium is brought back to the surface , and also when this is drilled into since radon gas has always presented problems in certain areas , could fracking allows the radon to escape easier to the surface area . Ohio does have minerals which can become unsafe for humans and the deep holes go right through  them . It is never as much worry if you are in an office far from the disturbances that are making you rich . I am afraid Hawaii would be too crowded for all of us so we better pace ourselves and do our best since we are now becoming more aware of our situation . I hope those that signed a few years back and are just being developed are afforded some relief that they can live with , either that or get enough money to move away from their troubles . Picking up your roots is a very hard thing to de when you have elderly loved ones in the picture  but sometimes you have to do what you can to make your life easier .This devastation you are experiencing can present many problems I am sure .  Good Luck in your plight and pray we don't repeat the same mistakes .

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