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Comment by shantycreekfarms on December 30, 2011 at 3:03pm

Thanks Finnbear    Just wondered why,there are too many fly by night companies out there , not that they are but all need to watch there backs.

Comment by Finnbear on December 30, 2011 at 2:58pm

ALOV was the original non-profit landowners association as organized by Bob Rea.
Buckeye Minerals Development is a for-profit business formed by Bob Rea to represent future land groups.

Comment by shantycreekfarms on December 30, 2011 at 2:54pm

 Does anyone know why ALOV changed there name to Buckeye Mineral.

Comment by shantycreekfarms on December 30, 2011 at 2:52pm

 Bill

   No drilling has been done  in ashtabula county yet but as soon as the bore holes are done in parkman  they will be moving rig to richmond twp.

Comment by Bill Simpson on December 30, 2011 at 12:54pm

Does anyone know if any so called experimental wells have been dug in Eastern Ashtabula County? If so, does anyone know what the results possibly are? I was told that this is a pretty good indicator as to what pricing and roylalties may be down the road and whom to expect may be coming in.

Comment by Ed Ganelli on December 30, 2011 at 8:30am

Exactly, Mark!  However, nearly as important as not signing away implied covenant rights is signing away the right to take disputes to court, having instead to take them to arbitration! Adam Thomas, a WishGard agent, posted this article:

http://business-journal.com/reuters-investigates-chesapeakes-shells...

in a different thread on this site.  It was posted to show that ALOV has so far only signed with Chesapeake, and the article does show Chesapeake in an unfavorable light.  However, the article ALSO shows the importance of being able to litigate in court!  Arbitration needs not consider the disputed matter only on a legal basis, but can also take industry standards, past accepted practices, etc. into consideration.  Can you IMAGINE being in the position the landowners in the article are if this was the case?

Comment by Ed Ganelli on December 30, 2011 at 6:58am

I also had an attorney look over the WishGard lease, Helen.  Did your attorney point out to you that by signing that lease the landowner gives up ALL rights to terminating the lease through non-compliance with implied covenant laws?  That the landowner MUST give up the right to have lease disputes heard in a court of law (which requires the arguments to be judged LEGALLY, as opposed standard industry practice)?  There are MANY parts of the WishGard lease that are sub-par to an ALOV or SURE patterned lease...the WishGard lease may be industry standard, but it's NOT landowner friendly at all!

I'd bring it to another attorney for a second opinion...

Comment by Helen on December 30, 2011 at 6:28am

Just to let you and others know...I did have an OIL/GAS Attorney look over the Wishgard lease and he said it was a standard lease and said there were NO red flags. He said it was a pretty standard lease. I am having him look over other leases as well before making a decision.

Comment by Ed Ganelli on December 30, 2011 at 4:27am

I posted this in the Eastern Ashtabula Landowners Association thread, but wanted to be sure everyone in this forum has a chance to read it, so am reposting here.  Make SURE that you talk with neighbors and let them know this information...it's important, and not everyone has access to any real information about the leasing boom that is just now hitting Ashtabula County.

ANYONE signing now with WishGard has made a HUGE mistake!!!!  WishGard is nothing more than a company that makes their money flipping leases!  They have a well-rehearsed, high-pressure sales pitch - the area is unproven (so far, basically true, but looks VERY promising!)...offers for acreage may go down to nothing (so far, also true)...BUT if you sign with WishGard you'll at least get SOMETHING if area proves to be crap (NOT AT ALL TRUE!!!!).

The simple truth is that signing with WishGard DOES NOT GUARANTEE PAYMENT if the area proves useless!  Their lease they have you sign does NOT guarantee payment at the end of the 120 business days (more than 180 calender days) specified in the lease!  If the area proves worthless and WishGard is unable to flip the leases, does anyone believe that they will still pay the landowner for what has become useless acreage?  All they have to do is NOT pay - the lease will then be terminated for non-compliance and the landowner is right back to where they started.  IF WishGard DOES pay, then they flipped the leases for more than they paid for the acreage - at this point, the landowner committed for far less than their acreage was worth!

WishGard DOES NOT HAVE PROFIT for the landowner as their goal - they have profit for themselves as the SOLE driving force behind their company!  I see on here that Bob Rae and Buckeye Mineral have scheduled a meeting in Pierpont in the near future.  Last I knew, his company now charges 2 3/4 percent of signing bonus to represent the landowner.  I can't stress just how much better an option this is for landowners who want to have as little personal involvement process as they have to - a lease that is far, FAR better than the one they would tie into with WishGard, and someone who DOES have to have the landowner's best interests as an important goal.  Buckeye Mineral makes more money based on how much the landowner signs for per acre - for each dollar more, Buckeye gets 2 3/4 percent of that dollar!  If you sign with WishGard, the BEST you will ever see is 1600 or so an acre...if Buckeye negotiates a lease agreement for, lets say, 3000 per acre, then the landowner has to pay them 82.50 per acre, but still gets 2917.50 per acre.  That's 1300+ dollars more than WishGard would have gotten them AND a lease that is far more landowner friendly!!!!

It's all common sense, basically...the landowner has something that most probably is worth something.  WHY would anyone be willing to let somebody else control how that value is marketed?  If you had a car you wanted to sell, would you really have someone else sell it for you and accept whatever they said they were able to get?

Again...remember, signing now with WishGard does NOT guarantee payment as they stress to landowners again and again!

Comment by shantycreekfarms on December 29, 2011 at 2:25pm

anyone on from ashtabula couty

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