Comment

Comment by David on July 8, 2010 at 2:38pm

I am part of a group who owns several hundred acres in lower Colley Township near Frost Hollow. We are very receptive to drilling and pipelines. I hope a few don't ruin it for the many who welcome drilling. Drilling done responsibly will be great for the county and region. We need natural gas. Better US gas than foreign oil.

Comment by john shorb on July 8, 2010 at 1:26pm

Jeff,

I attended the meeting. The first twenty minutes was a public relations primer concerning how wonderful Chief is. Chief had several knowledgable staff in attendance, in particular their water quality expert. They did a good job trying to answer everyone's questions, the bulk of which centered around safety and environmental concerns. I had three questions I wished to be answered, and they were. Chief is voluntarily casing all future gas well bore piping with oil well grade cement. Chief is agressively drilling in Sullivan County over the next year or two so as to drill as many wells as possible before their leases expire. They do not necessarily plan to bring the wells into production. Rather, they want to excercise their rights under existing leases and not have to pay a second time to release property. Many of the drilled wells will be capped, or moth balled, until such time as gathering lines catch up to the drilling. Third, potential drilling areas in which they hold leases containing pockets of land owners unreceptive to gas drilling and refusing to sign leases are the least likely (lower priority) potential drilling areas. Two other worthwhile pieces of infomation to be unveiled - they plan to hit the Sonestown and Muncy Valley areas hard. This area dovetails with a concentrated or mature area of effort for Chief in eastern Lycoming County. This area will see their gas transported south to the interstate pipeline in Lycoming County. They also have some plans for Fox, Forks and Elkland areas, but theses plans appear less aggressive than the aforementioned and the gas will flow north to the Tennessee pipeline in Bradford county. They also work freely and closely with Chesapeake, and develop together.

I thought the folks of Sullivan were very professional in their conduct and fair but firm in their questioning. Folks can be proud. Probably 75 or more folks attended. Several folks in the audience exhibited an anti gas bias, and interrupted eight to ten times to express personal opinions or hypothetical questions. The presentation group handled the situation well.

In summary, a fairly strong consensus was exhibited that the folks of Sullivan County take pride in their county's uniqueness and don't want it destroyed, even for money. On the heals of the BP fiasco, there was a healthy dose of scepticism with respect to Chief's assurances.

Comment by Jeff Ottaviano on July 8, 2010 at 3:48am

Did anyone attend the Community Meeting last night in Forksville held by Chief O&G? If so, can you share your experience and thoughts?

Comment by thomas kitchen on June 3, 2010 at 2:28pm

Has anyone been contacted by Texas Corporation. A ex landmen called and said this company is now leasing in the area and giving considerable more money????

Comment by David on May 25, 2010 at 1:30pm

thanks I found it. Going away from my direction

Comment by Jeff on May 25, 2010 at 1:00pm

Hi David
The well will be located between Millview and Estella.

Comment by David on May 24, 2010 at 3:16pm

anyone have any idea where the Castrogiovanni well is located in the county? It is in the permitting process right now?

Comment by Keith Billet on May 24, 2010 at 1:52am

Before selling your rights, consider this.

http://www.philly.com/philly/business/20100523_Firms_find_more_gas_...

Comment by john shorb on May 23, 2010 at 12:22pm

There are many considerations to digest. One such consideration is that, per Lester Greevy, mineral rights expert and gas attorney, less than 18% of Pennsylvania property owners with land in a gas play have seen 100% of their property in the gas field. This is most times overlooked by folks figuring to make a lot of money. Sometimes it is to the land owner's advantage to accept a nice offer from a gas company prior to seizmic testing, which could lead a potentially interested gas suitor to pass on your property, because seizmic results show it's not a core parcel of land. This will be an industry that could continue for 100 years. The drilling now is limited to sure bet sweet spots - the low hanging fruit if you will. Thus the 18% figure.

Comment by scott brion on May 18, 2010 at 6:24am

Mark,
No offense taken. My use of 15% was meant to be a conservative assumption in discussing a mineral sale. I assume the property was already leased and most existing leases (signed before 2008) are at 12.5% royalty and it looks like most will get drilled with no opportunity to get a higher royalty. You are absolutely right that a 20% lease is worth more than a 15% lease. I can't speak for others, but I definitely hope to make money buying mineral rights, why else would I do it? Any seller should be careful to learn as much as they can and to understand the potential value of the mineral rights before considering to sell them. It is particularly important to discuss your specific situation with someone knowledgeable who can help interpret all the variables and make comments on the your actual position. I am not involved in the transaction discussed below in anyway. The only reason I commented is to point out that in my experience the assumption & math presented did not seem correct.

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