Replies to This Discussion

Permalink Reply by Lynn Wigglesworth on February 8, 2011 at 2:07am

That's a shame, but I don't think there's any way to fight it. Those contracts are carefully worded. At least she got that much. Around here (Delmar township) before your contract expires, East puts you in a unit that isn't producing, so there's no production AND no more bonus money. People could have their rights tied up forever and get only $5/acre/year for a shut in well. This certainly hasn't been the bonanza we expected!

Permalink Reply by Brian V. on February 8, 2011 at 7:13am

I suppose these situations are why the phrase "a deal is a deal" became so popular. There are many in this same boat. It's too bad. This area sure could have used the influx of money in the form of bonus payments like other areas within the marcellus have gotten. I guess Tioga County should be upset that the TBR was so popular 5 years ago. If not for that play many would not have been offered leases in the first place and could have gotten better marcellus deals.

Permalink Reply by Ann Ticopa on February 8, 2011 at 2:29pm

Or, it could have been even worse.  Roughly 25 years before T/BR there was a round of leasing at $5/2, some for 10 years.  Some of those companies "left in the middle of the night" after drilling dry holes, leaving the landowners with a mess to clean up and legal fees to get the leases voided.

Permalink Reply by Brian Day on February 8, 2011 at 2:41pm

Personally, I don't really think that the target WAS the Trenton/Blackriver formation 5 years ago.  i think East knew exactly what it was after.  Yes, the TBR might be there in isolated pockets, but the term "isolated pockets" kept the chances low of hitting anything valuable, as presented to the land owners at the time.  In this way, the value of the leases was low balled.  Had the value and over all expansiveness of the Marcellus benn emphasized, most people would have probably learned a great deal more about it and waited for much better leases, because they could have dealt as consortiums, better and more equitable for all involved.  Yes, this was a kind of fraud, but how is anyone going to prove it?

Permalink Reply by William Ladd on February 9, 2011 at 7:07am

$45.00 per acre is better then $2.00

 

Bill L.

aka bummy

Permalink Reply by Robin Jackson on February 9, 2011 at 3:28pm

Sure is.