Replies to This Discussion

Permalink Reply by Sinclair on May 4, 2011 at 4:11pm

Are you considering your neighbors? Not only will your property value go down, your neighbors' property will too. They may not appreciate breathing benzene, diesel fumes and toluene. If they want to sell their property who would want to buy it if it has major industrial activity on it? Your neighbors may be able to sue you for anticipated nuisance and you may end up not getting any money. You have to be careful what you wish for.
The water is not the only thing to consider, air quality is severely impaired. You will also get condensate tanks that release benzene constantly, if you're lucky you could get a compressor station too and then you'd really be sorry.some latest news
http://www.examiner.com/human-rights-in-national/woman-poisoned-wit...

Permalink Reply by Adam on May 5, 2011 at 2:02am

Sinclair,

 

You make very valid points, however dont try to push your ideas on people. You dont know how "sorry" someone else would be if a compressor station were to be place on their property.

 

I for one embrace and enjoy the activity. I dont want to harm the environment any more than the next guy.

 

The way you present your assumptions makes you sound very close minded. Not everyone thinks the same way as you.

 

Again, good points. Just ease up on the negativity.

Permalink Reply by G R B on May 6, 2011 at 4:25am

I appreciate and understand all of your points.  I do not have close neighbors and the majroty of the neighbors I have spoken to do not care and are interested in profiting off their land and leaving. Now that we have that covered can anyone actually provide me with some good advice?

Permalink Reply by Keith on August 9, 2011 at 5:15am

I work in the industry and I have an odd situation.  My grandfather who is 92, owns 100 acres in Jefferson County.  We are still working on a lease on the farm, but the quick answer to your question is not for a very long time.  Companies are going to focus on what has a time table and what they will lose money on if they don't do something with the lease.  Becasue Range doesn't have a time table is could be 20+ years before they even look at your property.  I am sorry for the bad news, but it is the truth.

Permalink Reply by G R B on August 9, 2011 at 5:19pm

Thanks Keith, I appreciate your insight. It is not really bad news. I don't owe much on it and already made a profit between slect cut of timber and the 10 acres I sold (was a 43 acres parcel in the past).  I am just trying to weigh the ideas of selling now without the gas rights or with. I have other investments I can get into. But thank you very much for your insight.  This is the exact type of info I am looking for.

Permalink Reply by Keith on August 15, 2011 at 2:54am

If you sell it, I would just reserve the oil and gas rights in the Deed.  You don't have to lease it, just keep the rights when you sell the surface.  In the deed there should be langue toward the end saying something like "Execpting and Reserving to the grantor all oil and gas on the above mentioned property(ies)."  That is by far the smartest thing to do!!!  Nobody can reclaim those rights for 20 years and even then they must put an add in the paper and at the point you or your heirs could come forward and say that you own the oil and gas rights, not the surface owner.

Permalink Reply by Joe Scipione on August 9, 2011 at 6:30am

Some things that may help you:  Your land is what's referred to in industry terms as "HBP", which means "held by production".  Essentially, the old lease, as you've surmised, will control what's happening on your property.  There are a lot of resources on the internet that explain the ins and outs of HBP acreage, but I will tell you that depending on the age and depth of your well, the picture may be more complicated that you initially assume.  Secondly, I'm guessing by "contacted", you mean that there was an assignment of your marcellus and deep rights to Range Resources from Kriebel.  If that is the case, the assignment will be recorded in Clearfield Courthouse at the Recorder of Deeds Office, I'd recommend looking at the electronic copy, attached to it will be an "Exhibit "A"" which will be a gigantic list of acreages, and yours will be listed.  You'll want to check that list to see if 100% of your acreage was assigned at that depth, or only a portion.  While it's rare, those assignments can make mistakes which can help or hurt you.  Finally, I unfortunately don't have any information about the timeline for HBP acreage in Clearfield.  I'm going to assume that the assignment is permanent and isn't restricted by a time limitation.  Some people have chosen to hang onto HBP acreage, because eventually it will be tapped for Marcellus and deeper wells, however, I will tell you I've had a surprising number of clients involved in sales of their HBP oil and gas rights to companies which buy them.  I'm not saying this is a smart or dumb move, explaining the benefits/detriments of that call is best left to you and your attorney, but it is another option to consider.   

Permalink Reply by G R B on August 9, 2011 at 5:22pm

Thanks Joe.  Awesone info.  I was not aware of any of these things.  I will check out the info.  When you say clients are you a realtor? Let me know. What type of $ per acre are they getting in the Clearfield area?

Permalink Reply by Joe Scipione on August 15, 2011 at 4:16am

I apologize for not being clearer.  I'm an attorney in Clearfield County.  If you want to discuss numbers, invite me as a friend and I will send you via email some more specific information for your area.

Permalink Reply by G R B on August 15, 2011 at 8:11am

Hi Joe, In regards to this staement " I will tell you I've had a surprising number of clients involved in sales of their HBP oil and gas rights to companies which buy them.  I'm not saying this is a smart or dumb move, explaining the benefits/detriments of that call is best left to you and your attorney, but it is another option to consider"  I guess what I am wondering is what type of $ per acre are they getting with the gas rights included in the sale. I understand most of my option. I amwilling to just sell the land for a low price and keep the gas right for future exploration.  However if the $ per acre is good with the rights I would consider selling, knowing I have other ventures to put tha money into now, instead of waiting possibly 5-20 years for royalties.