Replies to This Discussion

Permalink Reply by Faycopa on October 29, 2009 at 1:12am

Theo,

Any income preservation ideas from your attorney you could share?

Permalink Reply by Theodore Koncsol on October 29, 2009 at 1:41am

What do you mean?

Permalink Reply by Craig on October 30, 2009 at 9:51am

I am not sure what they mean, but, take a look at this - set up a public foundation - it will be a private organization that can accept monies tax deductible and it would have to be involved in doing some such thing, like cancer awareness, cancer research, etc. Or, more to my liking, or maybe to yours - teaching local youth hunting and conservation skills on a small piece of God's creation that is currenlty held by Theo, and to whom they pay a substantial lease for such use of the property. As well, they can pay Theo for his expertise in hunting and other forest knowledge to teach the youngsters. Find what your desire in life is, assign the royalties, or part of them, to the Foundation, appoint the Board, include yourself as a Board member, and go about doing what you love to do while teaching others that are disadvantaged - meaning they don't have a place to go hunting on - how to hunt on the place leased by the Foundation, and you are the resident expert.

As well, the money goes into the Foundation, and it outlives you, and if your kids are involved in the Foundation, as directors, instructors, etc. ,then they too at some point, can collect a salary or other stipend as long as the Foundation goes about its business of doing what it was founded to do and they are serving the Foundation.

Think about it - all the big name actors do it - then they charge the Foundation fees to speak at their functions. Infact, some of them live in the houses that the Foundation owns and uses as a retreat center for the people to whom it caters.

Setting up a public foundation takes time and effort, but if you are already paying an attorney, then you just need to get the right kind of attorney, and be ready to work through it.

Permalink Reply by Lynn Wigglesworth on October 31, 2009 at 10:23am

Hey; I had a similar thought for the future when I'm rolling in money and don't know what to do with it all :-)

I'm a farmer and it's sad to see all the young people who would like to farm but don't have a hope of getting enough money to start. I thought of buying local farms (without the gas rights; they should be cheap), rebuilding the infrastructure (house, barn, fencing, whatever), and renting them cheaply to wanna-be farmers. If they show promise, I'd sell it to them cheaply. I'm sure it could be set up somehow to help protect my money as well as help people and support local food and the local economy.

If royalties are as big as some people claim, I could see our local economies coming down to the 'haves and the have nots', with farmers and landowners being the 'haves' for a change! If I do become one of the 'haves', I'd like to help others.

Permalink Reply by Brian Day on October 31, 2009 at 2:49pm

Wyoming has had an economy much like you describe. The tax man already is counting your money, you know.

Permalink Reply by Lynn Wigglesworth on November 3, 2009 at 5:06am

I was offered $1500/15%/5 by East and said no; the rep said that he'd see if they could do better. He came back today and said East was firm in their offer. There are wells going in literally all around me, so I feel pressured to get signed or lose out. The rep said that they've already scheduled seismic testing in my area for Jan. and will apply to drill by June or July. Who knows how long before that well is on a pipeline and making money. I can accept their offer and be included or not accept it and get nothing. What a choice, huh?

Permalink Reply by Theodore Koncsol on November 3, 2009 at 5:18am

Lynn where are you located?

Permalink Reply by Lynn Wigglesworth on November 3, 2009 at 10:35am

Delmar Township, just west of Wellsboro. There's an East well less than a mile north of me (drilled last year), one being drilled a couple of miles south, a pad done on Stony Fork road, and seismic testing somewhere west of me. At the rate East is putting in wells, I believe that they could have a well drilled here by next summer. I'm worried that if I don't sign, I'll be left out.

Permalink Reply by Brian Day on November 3, 2009 at 1:24pm

Do they have you designated in a pool for a particular well? Have you asked your neighbors if they are truly signed with East? Don't go on here-say as to your situation. Last that I knew, East had staked out a well on a friend of mine's property just outside of Keeneyville over a year ago. He had not even signed a restructured lease with them at the time. His lease, like mine, was around $50 an acre for the first year and 12.5%. East has a well permit for the sight. To my knowledge, he has never signed a lease upgrade - but some of his neighbors with more land got nervous and did sign for $150 an acre 15.5% ultimately. No well has been drilled there yet.
If some of your neighbors have not signed with East, perhaps you can bargain together. Is East planning a new well of of one of the previously drilled pads to your North or South? It seems to me that they would not be able to get a well permit approved very easily if they did not have the right to drill and frack under your land. Seems it would be cheaper to appease you to a reasonable extent than hold up progress at a well sigth already under way.

Permalink Reply by Lynn Wigglesworth on November 4, 2009 at 1:00am

I wouldn't be included in any of the wells underway now. The unit I will be in isn't tested yet. I don't know which properties will be in this unit, but I know that many/most of my neighbors are leased. East swept through last year and leased a lot of land. I didn't sign then and now I'm getting a lot less than my neighbors got (they got $2300/acre; I'm getting $1500). They couldn't drill under me, but WOULD be allowed to frac under my land and suck my gas out (Rule of Capture) if I'm not leased. I also thought it would be easier for them to give me what my neighbors got than to risk holding up the seismic testing, but apparently not...they just said 'no' to giving me the same as my neighbors got.

What's a 'restructured' or 'upgraded' lease? I thought that once you signed, no matter how bad of a deal you got, that was it until the lease expired or they drilled.

Permalink Reply by Tom Copley on November 7, 2009 at 8:09am

Lynn-- There are other companies leasing in Tioga County. A quick search of the wiki came up with a bunch of other companies that have at least some interest in the County. Never hurts to get some competition going! --Tom

Permalink Reply by Brian Day on November 7, 2009 at 1:41pm

There is a big company called Novus out of Canada that just applied for a drilling permit in Tioga County. Hopefully they will show even more interest.

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