Replies to This Discussion

Permalink Reply by Danny DeVivo on September 26, 2012 at 11:05am

my lease runs out in Oct. of 2014, I signed a five year lease with a three year option after that.

Permalink Reply by melissa humphrey on October 11, 2012 at 6:28pm

The Friendsville lease is termed complex by the industry if they are being polite. Being a non standard lease, the language is uneven and subject to interpretation. Early on FG leases are being included in units though often with ratifications. With the industry looking at 3-4$ gas not 6-8 a few years back, you may see them not renew FG leases as is. However if particular parcels are especially required, they may renew.

 

It is not 2007-2009 when gas was 4-13$ and competition was high to round up NE PA Marcellus acreage. Lease bids for the few remaining unleased are way down.

 

Landowners need to assess their plots and determine how valuable they are. Sadly at this point there are many parcels in units being drained and vs just 1 year back, gascos seem content. They only HAVE to have the lease if the bore goes under.

 

Landowners will need to decide, do they really wish to participate or just playing for bonus. If they wish to participate they need to be ready to sign leases that are more straight forward- though without question, still require protections.

 

We think it is becoming clear PA need dedicated integration (forced pooling) so that landowners are not left out of pools. We need language where landowners can force their way into a unit.

Interested here in other’s views!!

Melissa H.

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