Seismic testing (again)

Shell reps has just come through to get permission for seismic testing. I'm not leased (total surprise to them...I guess landowners aren't the only ones kept in the dark!), so I said no. I said I would be interested in leasing, and they said Shell would get back to me soon.

Does anyone know Shell's current standard offer? The last I heard (late last year) it was $2000/acre, 15% royalty. And they have addendums for C&G rollbacks, no storage, and some other environmental ones. I want to be prepared when they call to get the best deal. I'd like to hold out for a higher royalty; I know that Shell has bought/taken over leases with royalties as high as 20%. As I've written before, I'm in a pretty good position where it would be difficult for Shell to totally ignore my property. I want a deal, but I want better than their standard offer: now is my chance. Any ideas?

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Permalink Reply by William Constantine on September 29, 2011 at 11:53pm
I am not leased either. I hired a lawyer, The Clark law firm. I have been told that Shell has stopped any new leases for now because they went over budget. Don't expect any good offers soon. They are looking to lower the lease payments to future contracts. I have been contacted several times by gas company reps. Watch out. They lie!. I did not let them seismic my land either. If they are drilling anywhere close to you or are planning to, protect yourself and get a water test done by a certified lab. I have had 2 tests done in the last year for methane gas and fracking chemicals. To be legal protected the lab must come and take the samples ( not you) and have a change of hands record. Senaca is drilling 4,000 feet from me in the state forest. Don't let them BS you about doing a water test of your well. They are not required to do any tests over 1,000 feet from drill sites. So far so good on my well water.
Permalink Reply by Lynn Wigglesworth on September 30, 2011 at 2:08am

Shell is still leasing (I just signed), but I think they are only leasing properties that they need for seismic testing or to fill out units. I don't worry too much about my water; I already had some bad stuff in it and had to put in a reverse osmosis filter. Have you tested for barium, strontium, etc? Barium is naturally high in some well water all over this area.

Does anyone really get a better deal from Shell/Swepi when they have a lawyer? From everything I've heard, they don't change their terms for anyone, and they only allow certain addenda no matter how high-powered your lawyer is. I negotiated on my own and got the deal I wanted (the standard $2000/15%, but a true non-surface lease, which eliminated 90% of my concerns about protecting my property)

Permalink Reply by Wayne D on September 30, 2011 at 3:11am
HI Lynn , my landmans name was Ed L*** was this yours ? I have been trying to get about the same lease you have . My neighbor has the same  .  Ed has been working with me for two years but alway drops the ball when it is in court , Thats where it is now.  I dont like using public forum for trading names . If I could get your landmans information maybe things would go easier for me .  My business phone number is 570-724-7000  if you are ok with giving out you landmans info . thanks Wayne  Darrenkamp  
Permalink Reply by Lynn Wigglesworth on September 30, 2011 at 3:27am
Wanye; I've been trying to get leased for almost 3 years now, and I've met with a LOT of East and Shell landmen (5 that I can think of). In the past, I've had some dealings with Ed L*** (if it's the same Ed L) and I wasn't impressed...not willing to work with me AT ALL.  I've worked with several landmen recently, all of whom worked for/with Long Consulting; that's where I got the lease I wanted. Call Long Consulting (716) 375-4801 and see what they can do for you. I'm not sure you have a choice of landmen; they send out whoever is available (or in my case, whoever is willing to meet with the "crazy lady")
Permalink Reply by Wayne D on September 30, 2011 at 7:47am
Thanks for the info Lynn
Permalink Reply by William Constantine on September 30, 2011 at 9:11am
Lynn; My water here has always been good. My well is 500 foot deep. The PH is 7.8. A little high but thats from the natural minerals in the ground. Some turbidity so I use paper filters, and carbon filtration. Seewald labs in Williamsport does my raw water test. They do a wide range of tests for everything. So I have a good report to show in court should any Gas well accidents near by destroy my potable water.
Permalink Reply by William Constantine on October 2, 2011 at 11:46pm
Jim, I am not out for more money. Just out to protect what I have. There are not enough inspectors to watch what they are doing. And I have read all the violations listed that they don't want anyone to know about. If they were so good and cared about property owners these accidents and vilotations would never have  exisited. I don't trust gas companys. I caught them in a few lies when they were trying to sign us up. That made me turn to a lawyer. And I don't care if they never get to me with a lease. If you say the roads are better then you should take a ride up this way. Heavy dump trucks have caused drain trenches to sink. And the repair to the road on Norris has made a section so narrow that only one car can pass at a time. They left the sides of the road with very deep trenches. Some one will roll over in there sooner or later. Our roads this way were much better when Chatham town took care of them. These guys don't know how to roll and spread stone.
Permalink Reply by paleface on October 3, 2011 at 1:08am
 William,the roads can't be resurfaced after each truck pases the gas co. is in a heavy construction stage of this gas play when they move on to the next stage it will be resurfaced. I have a commerical building down state the EPA is doing a big clean up job next to me and hundreds of 18 wheelers are riding past my building everyday,they don't fix anything its up to the township to fix the destroyed roads and broken pipes under ground from the weight,also the damage to the building plaster was falling off the walls from the vibration of the trucks.The EPA laughs at you and says you can't sue us were the govt.My point is the gas companys are doing a pretty good job trying to keep on top of it.
Permalink Reply by Lynn Wigglesworth on September 30, 2011 at 3:31am
UPDATE: Someone stopped by today to tell me that the GPS mapping crew will be here in the next couple of days. So the 3-D survey is getting closer. I'm in Delmar Township.
Permalink Reply by Lynn Wigglesworth on October 4, 2011 at 11:35am

They haven't gotten here yet with the GPS...it's been raining, so that might be slowing them down. The last I heard is that they don't expect to be finished until next spring.

There was a paperwork problem with my lease, so it didn't get sent to Shell until sometime last week.  There is another unit south of me that they could extend to include my property, but putting me in the Kennedy unit would make the most sense, since my property reaches almost half way across the unit, blocking at least one bore.

As far as I know, they didn't do the 3D seismic at the Butler or Baker sites or anywhere in this area yet. They have East's 2D tests, and that must be what they are using now to determine where to drill.

Permalink Reply by Lynn Wigglesworth on October 5, 2011 at 3:08am
They are doing a large section of Tioga County. They started somewhere in the northern part (Lawrenceville?) and are working their way down. The guy that stopped by said that the GPS crew (the first ones through) were in Middlebury township and working this way. I haven't heard from them yet. They plan to stop the survey during hunting season (end of November to January) so that will delay it, also.
Permalink Reply by William Ladd on October 4, 2011 at 12:13pm

Lynn, are you anywhere near Ely hill road?

 

Bill

aka Bummy

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