Comment

Comment by Sam Douglass on July 12, 2012 at 3:29pm

I think we could find language for a drilling commitment but that may not be something the producers are like to agree with with millions of acres of leased reserves to choose from.  They will not build billion dollar plants to take wet gas unless there are a couple of decades or so of fodder to make the investment worth it.

As an alternative to requiring a production schedule if that may not be achieved, it would seem to me that an annual minimum royalty [that could be credited against future production royalty] might be an answer to assure some income beyond the bonus.  The start of the payment might be delayed five years or so if the bonus is large enough.

Since they are after units of 1200 acres or so to hold the acreage with minimum drilling - it pretty well tells you the intent.

Comment by Dave on July 12, 2012 at 12:44pm

Jim, What is your email, i could forward you the lease just in case someone doesn't bring it to the meeting.  I would love to make it to a meeting but with my work schedule it's hard to make any meetings.

Comment by Bob Jenness on July 12, 2012 at 6:41am

for Warjr regarding the "trust"...

I share your approximate life condition and goal to preserve the property somehow, but I struggle with the dilemma of how much to try to insure a fair royalty flow.  Ideally, I'd like my lease to have a "bankable" commitment by my "energy partner" to drill to completion and bring all to production within the lease term or at most one paid extension.  Note that without such a commitment, we're essentially selling our mineral rights to a driller who may never get around to drilling more than a small percentage of our acreage and gas-bearing strata.  I know Sam is working on this, and I know CX has done so in the past, but we still can't know how it will work out for Crawford in 2012/3.  An alternative to a solid drill plan would be lease language that prorates lease delay payments (and extensions, of course) by actual drilled/production percentage in each unit.  I don't know if anyone has crafted such language, but it would seem to be as appropriate to the horizontal drilling technology as many other lease terms that are showing up in recent addenda.

Could somebody please start a story board of public domain photos of the RRC Cochranton well and post a reference to it?  It'll be a couple weeks before I have a chance to do a drive-by - Thanks.

Comment by rex roae on July 12, 2012 at 5:35am

Heck yeah it is!!

I'm at Sugar Lake and my brother is over on Plank road so it's right between the 2 of us.

Comment by petej on July 12, 2012 at 5:19am

Randy,

Is this exciting for the area or what? I'm sure the first Utica well in this region - Range will be very hush hush on the results. When the time comes, I should be able to see the flare from my house.

Comment by petej on July 12, 2012 at 5:11am

Sam,

I believe your not being close to the O & G companies could be a very good thing for landowners! Please keep us updated and I hope others have questions.

Comment by petej on July 12, 2012 at 5:05am

Along with this map, Range stated they were looking for results by summer 2012.

Comment by petej on July 12, 2012 at 5:00am

Comment by Elnathan Coryon April 13, 2012 at 8:50am

Comment by petej on July 12, 2012 at 4:54am

Wow!

Where was this?

Comment by Sam Douglass on July 12, 2012 at 4:03am

I just lost my draft of this note so I will start again.

The promoters of groups frequently claim expertise base upon closeness to the O&G industry.  That may not be a good thing.

If expertise means knowledge of what the industry will readily accept to get the deal closed, that is not the reason a landowner needs an expert.  In fact there are groups closing deals with oil and gas companies with results that are unremarkable - particularly when compared with deals in other parts of the country or even SW PA.

I can not claim closeness to the industry.  I would not be surprised if the oil and gas folks would be just as happy if I disappeared.  Some of my clients have been told to make me disappear.

I do not know everything but probably more than some.  I try to learn wnat I can from a variet of sources and encourage others to do likewise.

That is not so easy when dealing with an industry that loves "confidentiality" agreements so no one will find out if it has made a concession here and there.

And it is only recently that one company decided not to pay royalty on wet gas since it was not mentioned in the royalty clause that only required royalty on oil and gas.

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