Replies to This Discussion

Permalink Reply by Brad on December 29, 2011 at 6:09am

Dan,

Is this meeting specific to landowners of Eastern Ashtabula County only?  I'm assuming "eastern" would mean that only people from eastern Ashtabula can join the association?

Permalink Reply by Dan on December 29, 2011 at 8:44am

I'm not a spokesman for the group but my understanding is nothing is set in stone as far as will it stay a Eastern group only or eventually morph into a county wide group.

Permalink Reply by kristine nichols on December 29, 2011 at 12:35pm

Thank you for sharing this! I will be there.

Permalink Reply by shantycreekfarms on December 29, 2011 at 2:28pm

anyone there

Permalink Reply by Bill Simpson on December 29, 2011 at 11:01pm

I was... but then logged off. Missed your question.

I have property in Dorset but am out of town for the Pierpont meeting. I did send a note to Bob Rea asking if a second meeting will take place in the area. Has anyone heard how Wishgard did for sign ups in our area?
I believe many of the area folks signed up with them based on them being the first group to start signing people.
I only wish that those folks would have read and asked many questions like myself as I now realize that a group is the only and best way to go.

Permalink Reply by Ed Ganelli on December 30, 2011 at 4:23am

I haven't posted much on here the past couple of weeks, but have a bit of time now...so here goes:

ANYONE signing now with WishGard has made a HUGE mistake!!!!  WishGard is nothing more than a company that makes their money flipping leases!  They have a well-rehearsed, high-pressure sales pitch - the area is unproven (so far, basically true, but looks VERY promising!)...offers for acreage may go down to nothing (so far, also true)...BUT if you sign with WishGard you'll at least get SOMETHING if area proves to be crap (NOT AT ALL TRUE!!!!).

The simple truth is that signing with WishGard DOES NOT GUARANTEE PAYMENT if the area proves useless!  Their lease they have you sign does NOT guarantee payment at the end of the 120 business days (more than 180 calender days) specified in the lease!  If the area proves worthless and WishGard is unable to flip the leases, does anyone believe that they will still pay the landowner for what has become useless acreage?  All they have to do is NOT pay - the lease will then be terminated for non-compliance and the landowner is right back to where they started.  IF WishGard DOES pay, then they flipped the leases for more than they paid for the acreage - at this point, the landowner committed for far less than their acreage was worth!

WishGard DOES NOT HAVE PROFIT for the landowner as their goal - they have profit for themselves as the SOLE driving force behind their company!  I see on here that Bob Rae and Buckeye Mineral have scheduled a meeting in Pierpont in the near future.  Last I knew, his company now charges 2 3/4 percent of signing bonus to represent the landowner.  I can't stress just how much better an option this is for landowners who want to have as little personal involvement process as they have to - a lease that is far, FAR better than the one they would tie into with WishGard, and someone who DOES have to have the landowner's best interests as an important goal.  Buckeye Mineral makes more money based on how much the landowner signs for per acre - for each dollar more, Buckeye gets 2 3/4 percent of that dollar!  If you sign with WishGard, the BEST you will ever see is 1600 or so an acre...if Buckeye negotiates a lease agreement for, lets say, 3000 per acre, then the landowner has to pay them 82.50 per acre, but still gets 2917.50 per acre.  That's 1300+ dollars more than WishGard would have gotten them AND a lease that is far more landowner friendly!!!!

It's all common sense, basically...the landowner has something that most probably is worth something.  WHY would anyone be willing to let somebody else control how that value is marketed?  If you had a car you wanted to sell, would you really have someone else sell it for you and accept whatever they said they were able to get?

Again...remember, signing now with WishGard does NOT guarantee payment as they stress to landowners again and again!

Permalink Reply by Bill anders on January 18, 2012 at 8:28am

thanks for completing the circle on this.  You are telling people to not go through wish guard because they flip leases, but to instead go with Bob Rea who flips leases????

Lesser of two evils approach?  Just remember when Bob Rea tells you to be wary of landmen, that he himself is now a landman.  However, his is not a landman with a law degree, or any training of any kind.  He is a corn trader, who has been hustling eastern ohio landowners for almost two years.  

If CHK would not have been as desperate as they were to sign half of Ohio up for oil and gas leases before any of them had time to understand what was going on, or what their acreage was worth, he would still be manning his trading post on Salem, OH.  

he has also not sold or peddled acreage off to any other company than Chesapeake, so what leverage is he creating exactly?  

I would recommend re-reading your rant, and answering your own questions, you may in fact educate yourself.

Permalink Reply by john p halloran on January 18, 2012 at 8:32am

You do mke a good point bill !

Permalink Reply by Craig Stull on January 18, 2012 at 9:32am

Bill, Sounds like to me you have a problem with landgroups. Can any of you guys out there tell me why? Read all Bill Anders postings. Read the one where he stated that Chesapeake had the same lease as ALOV back in his april posting.    ANOTHER LANDFLIPPER !!!!!!!!!!!!!!!!!!!!!!! OR

Permalink Reply by Ed Ganelli on January 18, 2012 at 9:49am

Bill - This is the part of my rant above that you may have missed:  "...I can't stress just how much better an option this is for landowners who want to have as little personal involvement process as they have to..."!  I always advise people to wait and see what happens for a while, but some people just don't want the bother of the whole process - for those who don't, going with someone who at least gets paid more proportionate to what the landowner gets is a FAR better option than getting bottom dollar (if they even get that!) by signing with straight-out flippers!  At LEAST you have the end option of accepting or denying the final lease proposal when going through ALOV/Buckeye...

Permalink Reply by Michael Vary on January 12, 2012 at 7:59am

This meeting is still on for tonight at the firehall correct? I will be there.

Permalink Reply by Dan on January 12, 2012 at 9:59am

Hope to see everyone at the meeting!

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