Comment

Comment by Dan on August 10, 2011 at 3:47am

My understanding is that gas companies within a region will buy, sell, and trade leases between each other so that they can all acheive full drilling units. So your O&G company might buy up or trade for all the leases around you to make a unit, or they might sell or trade you to the neighbors O&G company, or some completely different O&G company could buy out both of the others.  That's not to say that there is no chance of you being shut out if your property is in an odd location with regard to how the units are being laid out, but that's a possibility even if you are with the same company as all your neighbors.

Comment by clyde vanhoose on August 10, 2011 at 3:27am

Here is a question that maybe somebody could answer. If I sign with one O/G company and my neighbors sign with another one. Would my lease be sold to the other company to make a drilling unit or would I be lockout of ever being in a unit?

Comment by Al Cramblett on August 10, 2011 at 3:14am

I have been absent from this board for a couple of days taking care of personal business

. I received a call yesterday evening advising that there were posts that violated the site guidelines which resulted in another individual being banned from GoMarsalisShale.com. I was not the one that took this initiative to ban. Moreover, I understand that some law firms have now taken to suing individuals that are posting negative comments about their law firm. There is a lot of money involved with leasing mineral rights in eastern Ohio. It appears that is making some people both greedy and vicious. That makes it even more imperative that a landowner be informed before signing a lease. In the beginning this webpage provided contact information for various landowner groups. I have now opted to remove all that information primarily because, at this point in time, I don't know which landowner group that I would join were I so inclined. It is my perception that many group leaders are negotiating large signing bonuses at the expense of the royalty payment. The reason for this, of course, is that they are charging a percentage fee based upon the signing bonus. Secondly, if one has a larger acreage, joining a landowner group may not be a good idea. There are several posts from Pennsylvania landowners that are suggesting the aforementioned. In closing, my recommendation remains to be in no hurry to sign a mineral lease.

Comment by Dan on August 10, 2011 at 12:24am

Sue, the way I see it is that ALOV and KWGD are two groups doing the same thing, which is forming landowner groups. Their leases are very similar, and the committment the landowner makes in joining either group is basically the same. You can pull out of the group whenever you want up until you agree to sign a lease that you approve of. Both take their group acreage and put it out to bid to get the best price out there. ALOV is not a law firm, has a board that makes decisions, and brings in lawyers to do the legal stuff. KWGD is a law firm, so they handle all the legal stuff. Both take input from their members into consideration when deciding how and when to move forward. KWGD can handle some title issues in-house that ALOV can't.

 

KWGD charges a fee for their services. ALOV started out non-profit and I think there may still be some of their groups not paying any fees, but the leadership of ALOV is also forming groups for profit, although they operate under a different name than ALOV. Charging a fee is reasonable, especially when you have a full-time experienced team working for the group, as both of these groups do. Since this fee is based on the signing bonus, you just have to compare the final negotiated bonus minus whatever fees there are to see what your effective bonus is before you compare it with another offer.

 

Both have put together a several successful groups already. Depending on things like your timing and your location, either one could have a deal you might like.

 

For people wanting to join a good group right now, KWGD seems to be on a trajectory to close their group at the end of August and go to bid. ALOV is always willing to take your name, and I'm not sure when their next group closes or who it represents.

Comment by JT on August 9, 2011 at 10:31pm

ALOV is a non-profit organization of local land owners who have joined together to educate and protect your Land Owner Oil and Gas rights. They have thousands of acres of land signed up in Columbiana, Carroll, Jefferson , Mahoning ,Stark, Tuscarawas, Harrison and now Trumbull Counties. They wrote the terms of the contract and put it out for bid. Landowner's voted on the bids. Cost to landowners was minimal ($60) verses being a percentage of the up front money. I've been to their meetings and, by far, it was the best of any I attended and the contract is the best I've seen.

Comment by keepthefaith on August 9, 2011 at 3:52pm

Questions, questions.  What's the relationship of ALOV with the mineral rights owners and how is that preferable to working directly with a legal firm that is putting together tracts of land for going out to bid? 

Comment by keepthefaith on August 9, 2011 at 3:49pm

We were at the KWGD meeting this eve in Cambridge and found it very informative.  We were wondering about references from any of their previous groups.  Are any of you out there in one the first four groups that they have worked with?  Are you happy with their work?   You can tell me if this is an off-limits topic for this website.  If so, I will be glad to give out my phone #. 

Comment by JT on August 9, 2011 at 11:30am

ALOV has several groups.  We are in group H.  Group G signed contracts in July.  Several groups after H but they closed the groups as of July 15.  The July 20th email was to Group B.

 

Comment by Paul Martinelli on August 9, 2011 at 11:13am

ALOV Group B payments are due Sept 6th.....and CHK expects to meet that deadline for most parcels.

 

CHK is busy doing title checks now....I talked to them.

Comment by Dan on August 9, 2011 at 7:50am

Oh, so that wasn't you?  That was Big Brother?  So if I write W********, J**, S***, W*********, or T**-****, it all gets blocked out? ;-)

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