Dominion sold?

Does anyone have information about Dominion being sold recently? And if so I wonder how it will impact the leases in certain areas, specificly Westfield Township?

 

East put a "HOLD" on signing drilling leases in the township several weeks ago because of  storage leases made many years ago. Storage leases were made about 1969 or 1970, for a piddling amount. That lease  did help with paying taxes back then. But now it is a different story.

 

An East landman came to see me and my wife with a lease. We looked it over and made a few changes that were approved. Then I asked how it would impact with the Dominion storage leasing. We were told that the maps that East had of Dominion's storage area did not encroach on their, (East's) maps.

 

However the acreage East was wanting to lease from me was the same acreage that I was being paid for storage by Dominion.After many Emails between myself and the East landman. I was informed that East had put a "HOLD" on any leases on certain areas. These areas were 40-plo3 and 40-plo4.

 

The East landman was the third drilling outfit wanting to lease my acreage.within the last couple or three years.

 

So I wonder what will come next?

 

Bill Ladd

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Replies to This Discussion

Permalink Reply by William Ladd on March 19, 2010 at 2:56am
Thank you Ruby for the information. Several of my neighbors are in the same boat that I am in. Just that lease money would go a great long way to ease conditions for many of us. Even without a drilling rig pulling in and setting up and hitting a bonanza.

I do expect that some sort of a deal will be hammered out in weeks or months to come that will benefit us all here in westfield township.

Bill L.

aka Bummy
Permalink Reply by William Ladd on March 23, 2010 at 7:54am
So now I wonder if Dominion has the drilling rigs to do frac drilling? Or do they intend to keep these leases they hold now locked up until they can be traded or sold for an ungodly amount many years down the road?

Bill L.
Permalink Reply by Scott Wilcox on March 28, 2010 at 1:59pm
I believe that Dominion has sold much of their leases in our area. They are more of a pipieline and energy company ( coal, nuclear etc...) They are not into drilling.
Permalink Reply by William Ladd on March 31, 2010 at 1:13am
The sabinsville pumping station is only a couple of miles from my home as the crow flies. And there is a big pipeline a few hundred yards from the Ladd estate. That pipeline feeds our neighborhood with a two inch pipeline. The big pipe was put in aproximately 60 years ago. I recall the workers, machinery and ditch when I was a kid in school. The pipline runs east and west. It more or less parallels the Cowanesque valley and route 49.

Bill L.
Permalink Reply by Mmmarkkk on March 31, 2010 at 2:15am
Dominion is selling their production rights to Consol. Very much like the Columbia situation that Ruby referred to above. Deal has not closed yet; still going through approvals, etc. But in the end, Consol will own the gas rights.
Permalink Reply by Mmmarkkk on March 31, 2010 at 2:17am
William: I think what you will find is that your land is already leased and that's why companies aren't consumating deals with you. A company cannot lease mineral rights that are already under lease. In your case, Dominion owns those lease rights, so another company can't come in and lease them. I believe that will preclude you from getting any lease money at this point.
Permalink Reply by William Ladd on March 31, 2010 at 5:37am
Well you are probably correct in your assumption. But if someone, (assuming dominion makes some sort of a deal with a driller), decides to drill and a goodly amount of gas is found, does that mean I have no chance to benefit from the production of said well?

Bill L.
Permalink Reply by Lynn Wigglesworth on March 31, 2010 at 5:55am
Bill; If you have leased your mineral rights and the company that holds your lease (whoever that might be) drills on your property, why would you not benefit? What does your lease say about royalty, etc?
Permalink Reply by William Ladd on March 31, 2010 at 12:39pm
Well for one thing, I may not benefit because by the time all this finigling and swapping gets over with I will likely be dead! I dont expect to live much more then another ten years. And if a well is drilled, how long will it take before any gas will be put on the market? Could very well be twenty years or more.

Now please tell me or gaurantee me that the taxes are not going to jump sky high if gas is actually found in Westfield township.

What is to prevent a well from being capped for fifteen or twenty years before it is drawn upon for the gas, while taxes are climbing?

Bill L.
Permalink Reply by Tim Baltz on April 2, 2010 at 3:31pm
Biil,

I would recommend talking with attorney Les Greevy. He is the guy on leasing rights and royalties. He is out of Williamsport and he is known by all of the gas companies. Let me know if you want his contact info.

Tim
Permalink Reply by William Ladd on April 10, 2010 at 9:57am
hey there Tim.

Sorry not to have gotten back to you before now. My computer went bonkers and I had to borrow one.

Yes! I would very much like to have the contact information. I thank you for offering it.

Bill
Permalink Reply by William Ladd on May 12, 2010 at 3:56am
As far as I know the lease is for storage purposes only. But what I do know is the pumping station at Sabinsville has been expanded to at least twice its size within a year. There have been several gas wells drilled within a half mile of that pumping station also within the last year.

Bill L.

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