Replies to This Discussion

Permalink Reply by Jack Young on May 1, 2014 at 3:19pm

Don't think they have drilled anything, but they are leasing and acquiring leases in selected parts of Potter County at prices similar to what Shell pays for 5 year leases next door in Tioga County. ($300/acre with a 1/8th royalty) Great to have them active in the county, although I believe that Oswayo Township isn't in the area they're working so far.

Permalink Reply by Tim on May 1, 2014 at 3:38pm

Ty Jack

What is the status and size of the storage facility in Genesse?

Permalink Reply by Jack Young on May 1, 2014 at 3:58pm

It's the Elisburg Storage Field, operated by Dominion. An old Oriskany field that was converted to storage in the 1950s, the field is a major obstacle to new drilling in that area, as are the other nearby storage fields. The Oriskany and Marcellus formations are just too close together for producing one not to impact the other, and so the storage operators tend to be very possessive about anything near them, even rights they don't have under lease!   

Permalink Reply by Tim on May 2, 2014 at 2:15pm

Do you have maps of the storage facilities and black out areas?

Considering northern potter has had weak marcellus results, the geology that ends up being attractive is prob the tbr and utica.

At those deeper depths, do the storage issues become less relevant?

Permalink Reply by Jack Young on May 2, 2014 at 3:27pm

You can get official maps from the PA DEP - they show both the storage field and buffer zone boundaries. There has been little drilling into the Marcellus in northern Potter County, so nobody really knows what the potential there might be. The storage issues are still relevant even in the deeper formations, however, because the storage companies control quite large blocks of property in and around their storage fields, and typically have all depths. So putting enough acreage together to make an economic prospect in between these fields can be challenging. That's one reason northern Potter has been so quiet in recent years.  

Permalink Reply by Tim on July 14, 2014 at 10:45am

Any updates in Potter. 

Hearing the leasing activity across the county is gathering steam and more townships are being involved........................anyone?

Permalink Reply by Steven R. Rothenberger on October 3, 2014 at 6:40am

Anybody have and idea how much and acre JKLM is paying, term, and Royalty % in Potter Co.?

It would be nice if we all shared this info.

Joe

Permalink Reply by Jack Young on October 3, 2014 at 11:57am

I think it depends where the land is located. They've been paying $300/acre for a 5 year lease in most areas, but if you have the right tract they can go higher. Other areas don't interest them at all, of course. So as always, location is key.