Replies to This Discussion

Permalink Reply by Dan on January 8, 2012 at 8:45am

Attended one of their meetings a while back. Their claim is the extra environmental safety written in their lease like no ponds, double well casing at the water table, water testing . I believe it was a min 2000 per acre. I didn't think it was a high pressure presentation .  They want a 5 year commitment.

Permalink Reply by Depolarized Farmer on January 8, 2012 at 11:51am

NELA is not a driller, and in my opinion they are not a landowner association either.  As I understand it, NELA's business plan is simply to flip their leases just like Wishguard... but NELA's lease ties up the landowner for 5 years, with no guarantee of payment.  That was the end of the story for me.  Also, I think NELA should demonstrate where the financial resources will come from to back up the environmental guarantees that they advertise.  Aren't they a newly formed company?  Can they possibly buy enough insurance to cover that liability?  How can they make such guarantees when the drilling / fracking process is completely out of their control?  Just wondering...

Permalink Reply by Depolarized Farmer on January 8, 2012 at 1:36pm

I have skin in the game...  I own a couple hundred acres in Ashtabula.  Please believe me that I've genuinely thought through what Wishguard and NELA are offering... met with Wishguard in person, and NELA by phone.

Fortunately for me, I had become educated about what's happening in NE Ohio by joining with Bob Rea / ALOV to lease my acreage in another county last spring.  As a result, I now have a great lease and was paid on time by Chesapeake.  I have not committed to this new Eastern Ashtabula Landowners Assoc. yet, but if Bob Rea is going to represent them, I can't think of a good reason not to unless they have some kind of unreasonable fee.  Bob Rea's fee is 2.75% of the bonus payment...  I can certainly live with that.

Permalink Reply by john p halloran on January 13, 2012 at 3:10pm

I think ill probably go with bob,heard him him speak in pierpont and seems like a staight up guy. I know some folks think he should do it for nothing,I for one think he should be compensated and the higher the bonus payment the more he makes. His fee comes out to 2750.00 per 100000.00.

Permalink Reply by Bill Simpson on January 8, 2012 at 10:16am

I have heard of them (from my Amish neighbor) but have not have attended any of their meetings since i did not know they were in Eastern Ashtabula County. Has anyone out there sat in at a meeting and received a copy of their lease?

Are they fair, good , low ball etc? Is the lease protective. What are the dollar amounts they are throwing out there?

Would like any and all information anyone has.

Thx

Bill

Permalink Reply by kristine nichols on January 9, 2012 at 8:48am

I attended a meeting in Dec. You do sign for 5 years and then they negotiate with the oil co. They guarantee a minimum of $2000.00 an acre and 15%. They were hinting at a possible $5000.00 and 20%, saying that that other areas had just negotiated that. From the info handed out: "NELA is an Ohio corporation formed by the principals of BJAAM Environmental to educate land owners who are considering oil and gas leasing. BJAAM brings 25 years of environmental and oil and gas leasing experience to NELA. The two primary benefits of NELA group representation are our water well sampling program and our increased negotiating power with the oil companies." They do have a sample lease in the packet, along with a sheet stating how their lease differs from the Big Oil's. A few are: (1) Option to renew the lease will cost the oil co 1.5 times the original lease bonus.   (2)Landowner retains all mineral rights and natural resources from surface down to 500 ft. Oil and gas co get ONLY oil and gas below 500 feet. (3) Oil co gives landowner a complete indemnity for all of oil companies activities. (4) Water quality is guaranteed to be restored or replaced by both NELA  and oil co if NELA finds that ground water quality was contaminated by oil co drilling on the landowner's land. Also numerous environmental restrictions are listed. Their fee was 5.25% IF you signed up before 12/31/11. Now it is 5.50% and in a few more weeks it will be 5.75% etc. They say they like to reward the landowners who sign up early with a discount rate. It is plain to see that it is a pressure tactic, now I am getting letters saying last chance to sign for 5.50%. Hope this info helped some.

Permalink Reply by martin smith on January 20, 2012 at 2:46am

i have been to two meetings and i dont think i will sign with them.Yes they did talk about how "WE"will make sure the landowners water will be protected,but when i confronted them about if someone has a well drilled next to me and has a different lease my water isnt protected!!!also in the lease after 3 years of the first well being drilled they are no longer resposable for my water!!!i also think they want alot of money for nothing!!!they are "double dipping"imo.they want a big percent for sign up and even more money from the O&G co.for testing and clean up.the O&G co.will have to pay BJAAM what ever they want to clean up and kind of spill.I think i will wait for awhile and see what happens.

 

Permalink Reply by Bill Simpson on January 9, 2012 at 12:12pm

Just an FYI.

I spoke with Buckeye Mineral/Shale twice in the past two (2) weeks. They have not formed a group yet for the Eastern Ashtabula area. Bob will be speaking at the meeting at the Pierpont fire station this week and I believe passing out copies of their ALOV lease. I was told that when they do start to form a group they will contact me (gave them name/address/phone etc) and then send me out an information package. I have no other info on any other groups except www.washingtonpalawyer.com. They are having I think about 4-6 meetings in the area in the next few weeks. There are two (2) scheduled tomorrow in Jefferson. They charge 8% as their fee and do not take any of the royalty percentage. I know nothing about them but am attending one of the meetings to learn more about what is going on in our area. They have a copy of their lease on their website. if anyone has feedback on them let me know. Also doe anyone have a copy of the NELA lease. I have leases from Wishgard, www.washingtonpalawyer, and Buckeye Mineral/Shale and would like to compare them all.
Any and all info would be greatly appreciated as I am new to the leasing arena.

Permalink Reply by T. Finley on January 9, 2012 at 3:45pm

According to their website (www.nelashale.org), they have a meeting in Austinburg tomorrow (Tuesday).  I'm sure you can get a copy of their lease there.

Permalink Reply by Bill Simpson on January 9, 2012 at 4:04pm

Thanks for the info on NELA. I went in an typed NELA in the search box and was able to look at some posts on them. From what I read they do not sound like a group I would want to work with.

Permalink Reply by john p halloran on January 13, 2012 at 3:28pm

Pierpont meeting was very informative.

Permalink Reply by Dukester on January 20, 2012 at 1:34pm

Signed with Nela months ago, they seem to have the landowners interest in mind. I  know they want to make money too, but the money for landowners up front seemed like a good idea seeing they probably won't drill in this area for a few years . As of this week they are planning to offer acreage in Spring of 2013.

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