Replies to This Discussion

Permalink Reply by Frank Walker on March 16, 2012 at 9:25am

Elizabeth on chance you're unaware, drilling activity here is slowing markedly now owing to the extremely low price of natural gas.

If you have thoughts of selling gas rights and are able to wait, this is not the best time to sell.  When (if) the price of NG recovers you should be able to sell more readily and obtain a higher price for your rights.

Permalink Reply by Elizabeth Murray on March 16, 2012 at 9:41am

I am aware of the slow down. Thought our well would be up by now. Thanks for the advice.

Permalink Reply by Elizabeth Murray on March 16, 2012 at 12:08pm

Not sure how much we should ask. We are in Warren Center near Lake o Meadows.

Permalink Reply by Elizabeth Murray on March 16, 2012 at 2:13pm

House has been broken into twice in past year.

Permalink Reply by Frank Walker on March 16, 2012 at 5:30pm

I admire your optimism.  I live in a rural region of Bradford County.  The State Police "drive by" my home roughly once a year . . . . . . though some years they don't show up at all.  I live in my home.  But for that it would be "easy pickin's".  The thieves know these kinds of things, and they factor them into their "activities".

I don't mean any disrespect.  Break ins are very bad and extremely distressing.  But worst of all, and it's a different type of criminal I concede, is when wrongdoers vandalize a home or burn an unoccupied place to the ground.

I owned an unoccupied, and distant, home many years ago.  Police coverage was nil.  I tried for several years but was unable to sell it.  They robbed it and tore it apart inside . . . tore out and stole wiring, etc..  But I was always grateful they did not torch the house, which I eventually was able somehow to sell.  Arson is the worst.  It leaves you with nothing at all.  And insurance for unoccupied, rural, homes can be very problematic.

Permalink Reply by Elizabeth Murray on March 16, 2012 at 5:41pm

I do agree with you, Frank. I suspect the criminals have some respect because they do not vandalize the house. In a strange way, they seem to show respect. Most of what they've taken has no value to me.

I am more worried about liability. It seems like there is a market for scrap metal because they stole every major kitchen appliance, of the 6, the newest one was more than 20 years old.

The neighbors do watch the house but these people know when to invade. I do not blame the police, they have enough to deal with.

Permalink Reply by melissa humphrey on March 17, 2012 at 3:26pm

Just an adea.

 

A different view -gas can’t stay at 2$ for too long, bankers, capital mkts will cut off financing for higher B-E plays. Informed buyers/sellers know this. Low prices weaken the mkt some but many will discount that if they want to own a high quality, long life,  energy  asset. What township are you in matters a lot.

 

Next, few want to put up with traffic and disruptions with no offsetting benefits, just natural. If it was 100 A and a house, maybe you sell 20% of th OnG rights. Here, selling 10 for it value, retaining 40, means it iw more salable and you collect cash- can diversify

Some. Too many assume sure thing- in NE Susquehanna, a landowner sold his mineral rights, he became geological suspicious from good contacts and gasco activities and took 2250/A. 200 people call him a fool – now? That area is being abandoned, lacking 3 ways.

Rare, but it can happen.

 

I would look at a value from 2007, add 50% for general increase in area economics, add $5000-6000/A for gas and you have diversified your base and own 40 A of gas- nice spot to be in?   Good luch with this.

 

Melissa

Permalink Reply by Elizabeth Murray on March 18, 2012 at 3:55pm

Went up this weekend to pack up. Weather was unbelievable. Saw some pipeline being laid but less than half of the water trucks seen on previous visits. Probably best to hold on for a bit. Empty and lock up house. Pray for NG prices to go up.

Thanks for the advice.

Permalink Reply by Ken Gibbs on March 29, 2012 at 3:50pm

Someone must have sold property within the last 6 to 12 months with OG rights, and someone must have sold without OG rights. I can't believe that there is no set numbers or at least approximate dollar values outlined somewhere.

 

10 Acres with OG rights in Warren Center is worth????????

 
10 Acres without OG rights in Warren Center is worth?????????

Someone must know these values! Are there absolutely NO comps to go by?

Permalink Reply by Elizabeth Murray on March 29, 2012 at 10:59pm

I have not investigated taking the path of splitting the property. About a year ago, we called in 4 realtors. Most advised not to sell right now. One told us that subdividing leads to problems. Was told rental after renovation was the way to go. However, in speaking to neighbors, the big rents come from gas men whose number has dropped. Lots of issues with renting to 4 different men. It is jointly owned with sibling who wants to be rid of it.

Permalink Reply by Golddigger on April 4, 2012 at 3:19pm

Kenny,

I didn't check comps even though I have access to most tranactions in Bradford and Tioga. However I just sold two 10 acre parcels in western Tioga for $40,000 and $42,000, which is the going rate even though seller's are asking $50,000-$60,000. As far as land with OGM's, it's isn't selling because owners are asking outrageous prices and Buyer's aren't paying it. Most speculators were adding about $3,000/acre for gas rights that have been leased, and $5,000 additional for unleased gas rights. However with the current gas prices and non interest from the gas companies, the investors aren't even interested at those prices anymore.

Permalink Reply by Golddigger on March 17, 2012 at 11:50pm

Elizabeth, Unless the 10 acres is a different lot of record on your deed (or deeded separate) from the 40 acres across the road, you would need to go through sub-division to sell it. Which would entail surveying the two parcels, obtaining a soils profile and passing perc tests on the remaining 40 acres, submitting all documents and survey maps to the township, planning commission, sewage agency, and DEP. Usually takes about 90 days if all requirements are met. It could be sold with or without the gas rights, even though more desirable with rights. Current sales show about a $2,000-$3,000/acre premium with the gas rights included. There are a lot of active listings on the market that are asking outrageous prices for land with their gas rights. However they aren't selling and can't be considered an accurate value until they have sold. Hope this helps.

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