Replies to This Discussion

Permalink Reply by Lynn Wigglesworth on June 2, 2011 at 3:01am

Answering my own question, someone over at p************* says that TTLC has an interested gas co. That's good news! It would be nice if TTLC would keep us informed so we don't all jump ship before they have a deal ready!

Permalink Reply by Wayne D on June 2, 2011 at 3:34am

Had a neighbor in TTLC who got tired of waiting. He signed with shell on his own . If I knew he was out of TTLC I would have worked along with him to offer my property also . I guess my point would be if TTLC has property all over would It be wiser to offer a few smaller amounts that are is closer proximity to each other. Would this make it more attractive to someone rather than sorting out a large amount all over ?

Permalink Reply by Lynn Wigglesworth on June 2, 2011 at 3:49am

I never understood how any company (other than Shell) would be interested in little bits and pieces of property scattered all over. I'd be surprised if there's a contiguous section of land in the TTLC auction large enough for a 640 acre unit! They were talking about dividing it into regions; that may be what will happen.

Permalink Reply by Ann Ticopa on June 3, 2011 at 9:27am

Just checked Landex and things were really slow (for SWEPI and Talisman) in May, compared to last year.  Unless the TTLC has solid reason to expect that at least one company other than SWEPI would bid, why attempt an auction?

Permalink Reply by William Ladd on June 5, 2011 at 1:06am

Didn't TTLC  sat that they would put out for bids and report back the results about may 27? Last year they apparently attracted no interest what so ever.

 

Is TTLC "dead in the water" so to speak?

 

Bill L.

aka Bummy

Permalink Reply by Ann Ticopa on June 5, 2011 at 3:24am

May 7 was the deadline for offers in advance of a lease sale.  I wouldn't say dead in the water as much as having dropped anchor, waiting for better weather.  And they do have their separate NYS interests. 

 

As an unleased TC landowner (not signed up with TTLC), I'd prefer they not hold an auction that's likely to fail.  It would be sort of like wanting to sell a house in a neighborhood that has a lot of weathered For Sale signs.  There was some comment before the first auction date to the effect that the results would set a new standard for TC leases.  I'd rather that standard not be the nobody wants to lease TC land.  

Permalink Reply by Brian V. on June 5, 2011 at 4:42am

It seems the companies are prefering to swap among themselves and for the time being construct units around unleased landowners than deal with TTLC and their hodge podge of scattered acreage. I was in Mansfield last week and spoke with a gentleman who claims he had recently signed with Talisman for $4500 with a 17% royalty. I never know what to believe from people anymore though. I'd take $4500 with a 20% and a depth clause and some other key addendums but Shell isn't touching my demands.

 

I hope TTLC gets something going for those who have been loyal to them. I doubt another failure will sit well with those that remain. Shell is really scattering their units all over the place. Every parcel they touch can kiss a new lease good bye. The last Shell Landman I spoke to said Shell is ramping up and cutting anyone out that won't sign. He said they have to attempt to sign them, but if they won't sign Shell green lights the unit around them or cuts them out and the landowner loses leverage once the unit is declared. I'm sure that as usual this is part truth and part scare tactic.

Permalink Reply by Ann Ticopa on June 5, 2011 at 8:13am

I'd believe the Talisman terms if the man's land is in Bradford County.  In TC, it's impossible to know how much bonus/royalty landowners "should" be getting.  At least in NE TC, most of the wells are shut-in. So, there are few production numbers to compare with those in Bradford Co. 

 

Yes, I got the "drill around" threat, with a map showing where they proposed to space out a property  But I also was told that the gathering line for the nearest (shut in single horizontal) well would be going in right away. Not!   And drilling activity has tapered off rather than ramped up.  So it's not yet time to lose sleep about the property being spaced out. 

Permalink Reply by paleface on June 5, 2011 at 9:29am

 I think TTLC came to the party in tioga county about 2 years to late,to much ground was already signed?

Permalink Reply by Lynn Wigglesworth on June 5, 2011 at 12:39pm

They (East/Shell) did that to me; the unit has a conspicuous chunk out of it (me)...they will have to cut at least one horizontal short if they don't lease me. The thing is, they didn't try very hard to lease me...in 2009 they offered me $1500/acre 15% (they had offered my neighbors $2300 15%). I said that wasn't acceptable, and asked for the offer my neighbors got, and they said 'oh well' and walked away; a few months later they made me the same offer again. They sent me a "sign now or you won't be included in the unit" letter a year ago, but didn't mention any terms in it. I've been really disappointed in their unwillingness to even discuss anything, let alone negotiate.

Permalink Reply by Ann Ticopa on June 6, 2011 at 5:47am

Is it possible the sticking point was the Pugh rather than the bonus $$?  In my last "negotiations", I agreed to consider a lower bonus in exchange for Addenda that included a Pugh.  The new lease did have most of the terms I wanted, but the Pugh wasn't a Pugh.  It gave them the option of over-riding it by paying a certain amount.  That was last August and I haven't been contacted since.

With the elections coming up, I thought one reason for them not being willing to budge was that they were expecting forced pooling legislation to be enacted.  While they might prefer leases  - which allow them to hbp an entire property by including a portion in a unit - forced pooling would be next best.

 

 

Permalink Reply by Lynn Wigglesworth on June 6, 2011 at 5:59am

At the time I was asking for a PUGH, but would have signed without one if the $$ and royalty was right. Now Shell has so much land around me tied up that no one else would be interested in me, so a PUGH isn't much use to me. I think the PUGH (and other terms) are what is keeping Shell from bidding on the TTLC lease. I worry that if I signed with another company and had a PUGH in the lease, Shell wouldn't want to take it over. And since I'm surrounded by Shell units, I have to eventually be included in a Shell unit or lose out completely.

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