Comment

Comment by Bob Jenness on October 11, 2012 at 2:09am

In this case:

1. Range is clearly a capable and motivated driller.

2. The land is clearly interesting to them because they're already producing and drilling in the area. 

3. The real value of their already extensive holdings for Utica Horizontal production will soon be known from Lippert, et al.

So why can't landowners and their representatives get serious about working with Range to include an actual drilling plan in these leases???

Obviously, it couldn't be so binding as to cause financial hardship to either side from unseen market conditions or acts of God,  but it would seem that a little math, futures market knowledge, and law could be applied here to make a  real drilling lease and a win-win deal.  How about it, Sam?

Comment by jim hall on October 11, 2012 at 1:15am

Berk,just my opinion.If Range wants the landowners to finance them the land should be worth a little more money.Say $1000/yr with a five year guarantee no matter what or when they drill.

Comment by james on October 10, 2012 at 3:31pm

Berk, is Range still wanting to pay by the year instead of all at once? Any way they would guarantee you would receive all 5 years bonus money even if they drilled in the 1st or 2nd year? I dont see why anyone would sign up with Range under these terms, if they guaranteed the full 5 years I would say its a great deal because of tax purposes, but if you lose the remaining years its would be a bad deal.

Comment by Bob Jenness on October 10, 2012 at 3:25pm

Regarding royalty for flaring, I guess that's a lot better than no income from it.  What it doesn't solve is that that flaring could dump frac products onto my neighbor's land, depending on the wind, and (s)he might be either an environmentalist, or leased to another, slower driller, etc.  I don't need that kind of negative goodwill, nor would I like to be the downwind party.   I know life's terribly hard for the driller, but I still don't think they're working as hard or struggling financially like the farmers they're leasing from have for many years waiting for this "harvest".

Comment by Berk on October 10, 2012 at 2:38pm

Range called me today. Upped the offer from 500 per yr to 750 per year and 15% royalty. 640 Ac unit. He's suppose to email me the contract tomorrow to look at. I asked if any of the contract was negotiable. He said some a little bit. Needless to say good old range would need to improve there lease significantly along with legal review  before I would be signing. I'm starting to wonder if they need my land or a part of it to create a big enough unit for the well going in behind me. I asked about the Lippert well all I got was "still being fracked".        

   

Comment by Sam Douglass on October 10, 2012 at 2:26pm

Why not include in your lease a provision that if flaring continues more than ___ hours, Lessee pays Lessor royalty on the flared gas after that point in time?

Comment by Bob Jenness on October 10, 2012 at 2:14pm

Is Range late with the flaring?  I thought there was a credible forecast they'd be ready in September.  Maybe we should start a rumor that they've developed stealth flaring technology:-)?  

As I've posted here before civilized natural gas producing countries have zero flaring laws and the technology to support them.  All it takes is a really big, high pressure filter, then you can both measure the output and sell it, too, and all the crud is in the filter to be buried, not spread with the prevailing wind on a plume of gratuitous CO2 and unburned hydrocarbons.  Perhaps we could sell this to the drillers because it would keep their production more secret:-)

Comment by Eugene on October 10, 2012 at 1:43pm

Anyone know anything about Cinco Energy being contracted to do lease work for Halcon? Their corporate office is in Houston. Offices in Denver, CO Lafayette, LA and Pittsburgh PA. I had one of their landmen in my driveway this week.

Comment by john doe on October 10, 2012 at 1:02pm

 will be noisy when Range finally flares Lipperts well.

Comment by j. rick on October 10, 2012 at 12:39pm

what happen all of a sudden no one is talking?

• ‹ Previous
• 1
• …
• 98
• 99
• 100
• 101
• 102
• …
• 151
• Next ›
• Page