Replies to This Discussion

Permalink Reply by Jackie on January 26, 2012 at 6:17am

NELA is working out of Miller Realty in Jefferson.  They are testing and insuring water. 

As an agent with Miller Realty,  if anyone has any questions regarding NELA I can find the answer for you.  They will talk with you, no obligation.

Permalink Reply by Depolarized Farmer on January 30, 2012 at 5:45am

Jackie,

I'm curious why Miller Realty has aligned itself with NELA.  You really need to read the lease developed by Bob Rea / Buckeye Mineral, and look at his track record of closing deals.  In my opinion, his pool is a far better option for Ashtabula County landowners than what NELA or Wishguard is trying to pull off.  What experience does NELA have in negotiating oil and gas transactions, and what relationships do they have with major oil companies?  Bob Rea has successfully represented over 200,000 acres to date, and the oil companies continue to seek him out.  I do not know how much acreage NELA has signed up in Ashtabula, but I'm pretty confident that Bob Rea will have a much larger amount to present to drillers.  There is safety in numbers for landowners.

Sorry if this post sounds negative, but I believe that real estate agents must be better informed before they start recommending to landowners that they lease their land with certain companies.  Agents are supposed to have the best interests of their clients in mind.

Permalink Reply by Depolarized Farmer on February 1, 2012 at 12:39pm

Here is a link to the lease on ALOV's website. 

http://www.alov.us/images/SURE_Lease_Final.pdf

In addition to requiring independent 3rd party water testing in advance, the water clause (Section 5.2) states that if there is any problem with the water quality or quantity, the driller is immediately responsible, and automatically presumed guilty unless proven innocent.  This gives the landowner a very strong upper hand.  Section 5.1 (g) also prohibits the driller from using any of a landowner's surface or subsurface water without the landowner's consent in the form of a separate agreement.

ALOV obviously has developed a great lease (double Pugh clause, etc.) ...  the big difference is that they've actually succeeded in getting drillers to sign it.  That's where most others fail. 

Permalink Reply by brynmore on February 3, 2012 at 10:09am

to depolarized farmer: you had said that you were paid on time by chesapeke, could you tell me how long you waited from the time you signed with alov and you received your check ? what county your property was in that the deal with alov was closed? and could you give us some details as far as that deal goes like per acre price royalities etc that you signed . hope the questions are not too personal , just trying to gauge alot of information. thanks

Permalink Reply by Depolarized Farmer on February 6, 2012 at 12:43pm

I can't share details since Chesapeake and ALOV agreed to a confidentiality clause.  But I can say that Chesapeake paid in the agreed upon 90-day timeframe (although they waited until the very end), and they paid with an an actual bank check (not a bank draft).  One of the things that I really appreciate about ALOV is that they require the driller to first sign a contract which obligates the driller to pay for all the leases they sign (except for parcels that are already leased or have title problems).  This prevents the game that so many drillers play by getting large numbers of landowners to sign leases, but the driller reserves the right to back out for any reason because they don't actually sign the lease...  only the landowner does.  It's not really a contract, just an "offer" by the landowner which is binding on the landowner at the driller's option.  And even after giving the landowner a bank draft, the driller can take it back for a period of time if they want to.  ALOV's system prevents all of that mess...  and ALOV requires the driller to sign the lease (making it a binding contract on both parties). 

Permalink Reply by john p halloran on February 4, 2012 at 3:54pm

N.E.L.A. is Just playing a one string banjo about peoples water anxieties.Leave that out and they are no better than these other shysters.

Permalink Reply by martin smith on February 4, 2012 at 11:50pm

i really like the people from nela and think they have some good intentions but i dont think they are the best we are going to get.when i asked them about my water they were very straight forward about trying to protect it with all of there testing.the main problem is they are not liable for my water AT ALL if another co.drills next to my house!!!!!so all the testing and clausesare worthless usless the place the well goes in is also part of the nela lease.Now lets just say the well was drilled on my property,yes they will protect my water BUT for only three years after the first hole is drilled!!!!!as we have all read it can take several years and the drillers can put up to ten horizonal holes in one well.what happens if there is a problem??????????the guy said he would look into it,and yes i was right because of the way they wrote the lease.all i can say is we should all wait and see what is going to happen south of use first then make up are minds who we should sign with.

Permalink Reply by brynmore on February 6, 2012 at 1:39pm

to depolarized farmer : thanks for your input on your experience, i appreciate it. what county was your land in?:)

Permalink Reply by Billy Park Whyde on February 20, 2012 at 6:06am

Does anyone know if Northcoast is related North Coast Energy?

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