Replies to This Discussion

Permalink Reply by Nate on October 28, 2010 at 1:58am

Yes, that's one of our wells, Off New England road.

Permalink Reply by Allen Voshall on February 3, 2011 at 7:49am

Hi all,

Anyone know how to get in touch with Sierra?

I tried a website I found, but got no reply.

Thanks!

Permalink Reply by Richard Clark on October 27, 2010 at 3:04am

Nate, Is all of the infrastructure inplace to get the gas from the well to market where Dave lives and where you are working?

Permalink Reply by David Mohn on October 27, 2010 at 3:53am

I know a few decades ago there was a gas line buried through my property. It was when my dad owned the land. How big the line is I don't know but if I remember right it was pretty good size but I could be wrong. I am not even sure where it ends up but the yellow markers are still present and allot of the land touches where these markers are.

Permalink Reply by Nate on October 27, 2010 at 4:44am

There are many producer owned gas lines around there as well as Transmission lines. Probably Dominion East Ohio

Permalink Reply by David Mohn on October 27, 2010 at 4:48am

No my neighbor who owns 190 acres said it was a line going to some type of holding station. Not sure what that would be called. I really don't think it is a Dominion East Ohio line but then again, I could be wrong.

Permalink Reply by Paul Martinelli on November 17, 2010 at 9:21am

I hear offers are being made in Dover area...RED Hill has current leases. CKH is making the standard lowball $500/acre offer.

I have a transmission line on the property...Dominion just upgraded it to 18" I belive

Nate, I own 2 properties out New England Road area......the parcel just south of New England Road
(83 acres, strattles Tabor Ridge...with a section on South side of ST RT 39) and a parcel to the east, 188 acres, that has several Wells managed by Tipka.

Permalink Reply by thomas blocksom on November 1, 2010 at 7:44am

Most everyone in Columbiana county has been contacted about leasing by one company or another. DP Penn, Kenyon, Trinity, Cavelier, East Resources and as of late Sierra. I personally know several people who have recieved their checks at $1500.00 . I also know people who are due to recieve their checks in the next three weeks at $2000.00. I have friends who are negotiating with Dp at this time and are being offered $2000.00 15% on the gross and 1000 acre unit. Also, all of these landpeople have become MUCH more friendly and are more willing to work with landowners to provide fair leases with good terms now that there is competition in the area and local attorneys are getting up to speed on this facet of law that few of them have had much experience dealing with. My friends are asking for $2250.00 17.5% gross and 1000 acre unit.
In May we were being offered $5-$20. Today $2000.00. Next week ,who knows.
Definitly have and attorney go over the lease before you sign.Every word of every sentence in these leases is important otherwise they wouldn't be in there. And absolutly, not one word that anyone tells you is fact unless it is written in the contract. A deal like this won't come by again so ...get it right! Also, pay your attorney by the hour not by a percentage of your deal. Remember, it's YOUR deal not his. A lot of landowners are being taken advantaged of by their lawyers.
I don't know when I'll jump in. I've promised myself $2500.00 but the $2250. is an option. I would even take $3000.00 and 12 1/8 gross and 1000 acres drilling unit. Of course we all need to remember pigs do get slaughtered. Good luck.

Permalink Reply by Nate on November 1, 2010 at 12:29pm

You got it all spot on Tom

Permalink Reply by Craig on January 27, 2011 at 5:54pm

Tom, that 20/acre was probably 20/ac/yr.  Over ten years thats 200/acre. 

 

New Lease - most I have seen are 10 yr leases if at 2000/acre, that 200/year.  100 acres at 2000/acre this year is 200k income (taxes)  200/year/acre is 20k /yr and less taxes.  I have set deals up for people in negotiations where the company set-up a series of Single Premiuim Immediate Annuities where in the lessor received the payments on a monthly or yearly basis, and the money was all paid out, so it was much like a paid-up Lease, but the Taxes were less per year, and less overall as well. (depending o your income and where it currenlty comes form)  This saved the lessor money and the lesse (comany) money, but made sure the gross of 2000/acre was paid out whether the company drilled or not, and whether they went under or not, and kept less of it from finding its way to Uncle Sam.

Permalink Reply by Timothy K. Clay on November 16, 2010 at 3:54pm

Cheasepeake has contacted us in stark Cty. We have 500 acres. We are trying to find out what else is going on n Stark and what depths. TKC

Permalink Reply by David Mohn on November 17, 2010 at 2:06am

Tim, from talking with Chesapeake it sounds like they want to explore the Utica shale play. That is below the Marcellus. Make sure you read the contract carefully and do your homework in this. There is a good oil and gas atty in Alliance the put together some very nice landowner friendly changes that Chesapeake has agreed with. The upfront money is nice but the real payback is in the royalities. I know I did allot of leg work and I just signed yesterday and I feel good with what I signed. The offers might go up in Stark County but then again they might pull out all together. I don't think that will happen but it could. If you do your research, get together with your neighbors and work together, I am sure you will work out a partnership with Chesapeake that is agreable to you.

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