Replies to This Discussion

Permalink Reply by Terry W. on August 17, 2011 at 3:55am

Shell and Phillips are actively marketing in the Northern Butler area.

I understand that there is a well near six points, outside of Eau Clair

that is taking truck after truck of propane out of this well.

If you need any names of Land Agents, just let me know..

Permalink Reply by Brian on August 17, 2011 at 4:12am

I have seen this well outside of six points with large compressor and the propane tank.  Do you know whos well that is?  Are they currently taking propane off this location?  Is that horizontal or vertical well?  I hope to see the local drilling increase for our area.

Permalink Reply by Terry W. on August 17, 2011 at 4:23am

I Believe it is BLX.  My son talked to the owner....very sad....he did not have it in his lease

for the hydrocarbons, from what he told me.  attorney?

Yes, from what I understand they are taking propane off of the property. 

Is this well horz or vert, I do not know, I did not quiz my son.

 This is something you do once in

your lifetime and will have a definite affect on you kids, grandkids, and on and on.

Seismic testing was done in the Eau Clair area, and now Shell and Phillis/Exxon is actively

leasing.  This does tell you something.

Once these units are established, will give the o@g companies to come in and drill at least

one well to see what is there (as if they do not have a good idea already).  Maybe no

infrascructure yet, but let the propane roll.

Another thing, hold out for the price to go up....

Sign now and include in the addendum a time period that if the bonus/% goes up, they will

match it.  Same for the renewal. 

Need to get creative....both lessor and lessee.

Permalink Reply by JMS on August 17, 2011 at 6:03pm

Oh my, that is sad.

But this is the first time I am hearing anything about hydrocarbons being in the lease.

Everyone keeps talking gas, wet gas, and oil.  Do most good leases include hydrocarbons automatically, or is this something new?

 

 

Permalink Reply by Terry W. on August 18, 2011 at 2:49am

From what I understand, there are hydrocarbons and non-hydrocarbons.

Hydrocarbons are to gas, what non-hydrocarbons are to oil.

I have seen in one lease, where both appeared, and the attorney, in his

addendum, removed the non-hydrocarbons. 

As said a few times, you have to scrutinize each word in each sentance.

One word in itself can make a major change and you the Lessor ends up

suffering by lose of royalties...

Better understand, wet gas is considered the same as hydrocarbons.

I believe there are at least 10 hydrocarbons in the gas. 

I have been told that propane is a money maker.

Permalink Reply by JMS on August 18, 2011 at 1:32pm

Thanks for the info...I'm finding that the more I read about these leases, the less I know....guess that's where a good attorney comes in.

Permalink Reply by George Brown on September 23, 2011 at 3:29pm

Terry, I have land in Venango County but it literally sits on the border of Butler and Venango counties in Irwin township. I'd be interested in talking to the land men you mention if you wouldn't mind forwarding their contact info.

Thanks.

Permalink Reply by tomcats58 on September 15, 2011 at 7:46am

Lack of infrastructure is the only thing holding back Northern Butler County, but recent leasing activity in the north tells me it is coming soon. These big companies want to get everything leased up before they announce. Shell has already announce they are building a Billion dollar Crack plant somewhere in the Marcellus play, location to be announced by year end. Is it a coincidence that they made the announcement at the exact time they started leasing everything in sight in Northern Butler County?

Permalink Reply by Terry W. on September 15, 2011 at 8:22am

Waiting for final lease and addendum to sign in a few days with Shell.

From what I understand, Shell will be drilling two wells on each

unit (which can be up to 1280 acres) so they can see what is there,

and then all hell will break loose.....for the good, naturally!

Permalink Reply by JMS on September 17, 2011 at 7:27am

Okay then...are you willing to share your deal?

Permalink Reply by Terry W. on September 19, 2011 at 12:06pm

IMS

My deal, $3,000 15% without deductions 5yr + 5

They can take 400 acre and drill, the 1280 is their max.

Shell is the only company in Northern Butler Company that is active.

I don't believe that Shell is messing with the landowner

groups.  They are getting what they want individually.

Draft is in the bank, now onto other projects.

It doesn't seem to me that anybody sticks around after they sign

 

 

 

 

 

Permalink Reply by DKinPA on September 20, 2011 at 7:43am

Terry,  they tell the unwary landowner they will not deal with Landowner Groups so that they can get the landowner to agree to a deal that is not fair value.  But the fact is that BCLG has been in negotiations with Shell as well as XTO and Chevron and believe me they would love to strike a deal with BCLG and they keep trying.  Even though the numbers are above what you are agreeing to and with a very long list of strong addendums, the numbers are not where the group feels they should be at.  Would Shell like to pick off all landowners at a lower number?  You bet they would!  If I were a gas company I would do the exact same thing.

P.S.  I don't mean any disrespect to what you have done with your deal......you have done well!  Just stating where BCLG is in the negotiation process.

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