Replies to This Discussion

Permalink Reply by G S Gass on October 16, 2012 at 1:58am

Josie,

Thanks for the kind referral!

As we know - lease acquisition efforts have declined due to historically depressed wellhead prices.  We expect to see an increase in leasing throughout geologically favorable areas, as identified by recent seismic surveys.  Lease rates will be driven by geology, competition, exploration budgets, proximity to pipeline, and size of available open acreage blocks.  We see acreage expiring in 2013 and wellhead prices increasing, so the forecast is improving!

Gregory S. Gass, Certified Professional Landman

Working with landowners to discover win-win opportunities

email:   gsgass@frontiernet.net

 

 

Permalink Reply by E. Preston Rice on November 15, 2012 at 5:53am

Interesting to know. Our lease was cancelled by Shell 3 months after signing-before bonus monies were paid.

Permalink Reply by paleface on November 17, 2012 at 1:47am

 Preston did you check with Landex or recorder of deeds to see if the gas company is on your deed,its good to check periodicly to make sure there is no surprises.

Permalink Reply by E. Preston Rice on November 17, 2012 at 5:55am

The lease, with a letter of cancellation was returned to us. All seems to be in order, and as of yet the transaction had not been recorded on Landex. We have had our lawyers look over the returned documents and they believe everything to be in order. We are not doing anything here in the dark.

Permalink Reply by Janice L. Hancharick on November 17, 2012 at 6:54am

Sounds like you're doing everything right.  Paper trails for every land transaction are necessary, but too few recognize that!  Our courthouses should be jammed with references and cross-refernces to parcel activity.  They weren't when all this shale business started a few years ago, and what a mess it was ... for some still is!  Future generations will have is easier once we get "today's" affairs in order.

Letters of Surrender, Letters of Cancellation,  Letters of Breached Lease Contracts ...  these should all be in our vocabulary now.

That's why Penn State is having to jump on presenting seminars this year ... so the public will understand what options are out there.  We may long for a simpler time, but 30 years from now others will be longing for the same thing.

Permalink Reply by E. Preston Rice on November 30, 2012 at 5:20am

Recent search on Landex reveals that the surrender is registered. This leaves us clear of any lease.

A neighbor told us that the recent sonic surveys showed where all fault lines are and leases were cancelled if on a fault line due to water pollution possibilities. We will be trying to find out if this is the case with the Rice Homestead LLC.

Permalink Reply by Janice L. Hancharick on November 16, 2012 at 11:08am

PLEASE ... even though your lease has expired according to the date on the initial document ... the time frame over ... PLEASE do yourself a favor and request an official notarized document(2) of the expiration from the gas company. You want an official letter of surrender. Keep a copy for yourself and see that the other copy lands in the courthouse.

At some point in time your land will pass on to another.  Knowing its leasing history will be a plus on many levels for all concerned.

MANY leases have or will soon expire all over PA and NY's Southern Tier., and issues are arising  that landowners simply don't have enough knowlegde about. New decisions are tough to make w/o ample background information. Realizing this scenario is already being played out, Penn State has  begun presenting seminars across the state  entitled "Already Leased?  What are my Options?"  In spite of the title, this presentation and its materials are for those with leases "nearing the end times" (speaking of gas/oil), for those holding old agreements, and for those like yourself.  The topic cannot be adequately covered in this forum.

The speakers for the NOV. meeting are PSU educators connected with our shale plays, and gas/oil attorneys.  It's being held on November 29th  6:00 @ the Firemen's Meeting Hall   171 Rte.6W, Coudersport, PA.  $15/person  Registration is requested.  Call 814.887.5613  or go online to

http://agsci.psu.edu/shale-lease-options/coudersport 

I hope many see the newspapers and online sites announcing this seminar, and will be able to attend.

Permalink Reply by E. Preston Rice on November 17, 2012 at 10:19am

Maybe I have not mentioned that the land, including several buildings has been placed in an LLC called the Rice Homestead LLC. This is set up so that any blood relative will be a co-owner. The first generation after my father are present owners, and my father is the administrator. All documents are registered to the LLC, and complete files are being kept to make certain that deeding, leases, etc are kept intact. I will look into the seminars, and see if there is anything more I need to do.  Thanks all.

Permalink Reply by Lynn Wigglesworth on November 30, 2012 at 3:21am

Preston; Does an LLC with blood relatives mean that if one passes away, the others remain owners without any inheritance or estate taxes? I'd like to do something like that for my children; I'm land-rich but cash poor, so I don't want them owning a lot when they get the property.

Permalink Reply by E. Preston Rice on November 30, 2012 at 5:17am

The land is owned by the LLC. Members in ownership are the present generation. As one generation opts out due to death, infirmity or other reason, the next generation becomes a member. No taxes are paid from the LLC, but statements go to each member to state what their taxes are. Taxes on the land are paid by the LLC, and there is no transfer etc as the LLC owns the land. Also the land cannot be grabbed if one member ends up going to a home etc to help defray their care costs. Liability on the land is covered with the LLC insurance, and members cannot be sued for their assets beyond those of the LLC.

Permalink Reply by paleface on December 4, 2012 at 2:25am

Preston did you have to drop your homeowners insurance and get a commercial policy  now that the homestead is a corporation ?

Permalink Reply by paleface on December 17, 2012 at 3:19am

http://www.afsetc.com/ Looks like Charlston,Delmar and Union have the most permits and wells it must be a good area.

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