BCLG UPDATE

As I am sure you are aware there has been a strong push by Shell to sign landowners into a lease recently. If your neighbors are considering this lease, please have them look it over very carefully and compare it to leases in other areas of Pennsylvania and W. Virginia. Our area is no different, just that the activity is behind other areas which gives us the benefit of seeing what has worked elsewhere. Also tell them to keep in mind that a net royalty will yield approximately 50%, so a 15% royalty will yield 7.5% or much less than the legal minimum of 12.5%. The lease offers in our area right now have no depth severance and we believe that is something that definitely needs to be included. Consequently, this lease could yield several thousand dollars less per acre per year than what we believe a "fair" lease would yield.

A true landowner group (one like ours which is run by landowners) in Ohio named SURE (Standing United Really Excels) with 5,500 acres has secured a lease of $3500/ acre and 20% gross royalty (no deductions). It also includes a modified depth severance in the lease. How did they do this? By being patient and working together they were able to get to the point where they had 5 gas companies bidding on their land and consequently the landowners were in charge. If they can do it in Ohio we can definitely do it here!

So with that being said and all the current activity in our area it is time for another meeting. We have it scheduled for Thursday July 14 at the Snowmobile club which is located at:

                                  345 Old Brick Rd Hilliards, PA 16040.

Non-members informational meeting at 7 and members only meeting at 8:30. Hope to see you, your neighbors and friends there!