Comment

Comment by Jim Dickinson on November 3, 2011 at 5:31am

Saw the video of the Northwest PA Land Owner Group from October 4, at Conneaut Lake H.S. Got the impression that we were not going to hear anymore about what they have to say unless we sign-up and commit to paying a membership fee which had yet to be determined. If I am mistaken, please re-direct me to a location where they are speaking.

Comment by rex roae on November 3, 2011 at 3:36am

Before any of us jumps the gun,I think it would be fair to hear what the organizers of the Northwest PA Land Owner Group have to say.  It just seems logical that we'd be better off negotiating thru one larger group than many splintered off smaller groups.

Comment by justLTD on November 3, 2011 at 2:39am

Are there any other options?  Are there any other groups in the area?  If so what are their fees and their experience in running a group and preparing and negoitating a lease? 

Comment by RichR on November 3, 2011 at 2:26am

The Fryburg Landowners Group collected $50 from each landowner regardless of acreage.  They used that money to send out bid proposals to a number of companies, hire an attorney to put together a good lease for everyone, and to organize and provide a place for lease signing.  They had money left over which was donated to charity.

 

The size of the property should have no bearing on the cost to go through the process.  They are dealing with the number property owners not the number of acres.

Comment by Dave Siekkinen on November 3, 2011 at 1:45am

I agree with you Rex, the large, upfront, non-refundable fee seems like it going to put off a lot of people. If everyone who expressed interest in the group were to join, that's over $80,000. I know attorneys aren't cheap, but it seems excessive. A landowner group in Ohio that I helped my dad join was a single $50 flat fee and they explicitly said that they would leave no parts of the group out. It's my opinion that $400 is too much to join a group that has no guarantee of even trying to keep the parcels together.

Comment by rex roae on November 3, 2011 at 12:43am

I have a question about the landowners group for Crawford County.

 

 

 

Why are you collecting a non-refundable fee to sign up now when we don't even know if there's interest in our county or just interest in certain parts of the county?

 

What happens to the fees paid for by landowners in the north part of the county if gas companies only want to lease in the southern areas or vice versa?

 

 

I appreciate all the leg work that's being done and can't imagine the time it's taking but it seems there should be a better way to set up this group.  Perhaps make landowners pay a smaller fee upfront to help with costs and have a second fee once a lease is signed to take care of those who helped put this together.

 

 

 

Comment by Sam Douglass on October 29, 2011 at 9:41am

Nothing fishy about Arkansas - The gal, Pat Spencer, who has done an enormous amount of work to help put the NW group together has a mother who owns land in Crawford County.  Since she is the slave who is willing to continue to do the necessary, stuff gets mailed to her -at least until someone else picks up the oar and starts rowing.

Comment by Sam Douglass on October 29, 2011 at 7:18am

Every OIl and gas lease that I have seen has, near the end, a "do not believe a word I told you clause" that is essential to the lessee.  Leases and parts of leaseholds are assigned or otherwise transfered to others and peoples memories get foggy and even distorted.  If it is not in writing, don't count on it.

Comment by David Hunt on October 28, 2011 at 11:52am

 What is the e-mail address for the land owner group in Crawford County?

Comment by Sam Douglass on October 27, 2011 at 4:21pm

NOTE:  

THE FOLLOWING FROM PLATTS, A HIGHLY RESPECTED MC GRAW HILL PUBLICATION [as far as I know, in Texas, there is only one productive shale strata and Texans are paid more for their land - even though it is far from eastern markets --  Why?]:   

Upper Devonian may hold as much gas as Marcellus Shale: Range executive

Houston (Platts)--28Sep2011/255 pm EDT/1855 GMT

The Upper Devonian geologic horizon, located a couple of hundred feet above the prolific Marcellus Shale natural gas field in Pennsylvania, could contain as much gas per section as the Marcellus layer itself, a top manager at Range Resources said. 

Upper Devonian, found at shallower depths than the Marcellus Shale that sits around 6,500 feet deep in southwest Pennsylvania, may hold "probably an equal amount of gas per section...as there is in the Marcellus," Ray Walker, a senior vice president of Range, said late Tuesday at the Independent Petroleum Association of America's Oil and Gas Investment Seminar in San Francisco. His comments were webcast. 

The Upper Devonian horizon "lays right on top of" the Marcellus, Walker said. "The Marcellus in that part of the state is wet, and where it's wet, [the Upper Devonian layer] will also be wet," he said, referring to the BTU content of the gas. In that area of Pennsylvania, gas often holds abundant with gas liquids. 

Article continues below...

 

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Walker said Range has drilled a couple of test wells in the Upper Devonian so far and will likely drill the next one late in 2012 because of scheduling. One of the company's initial wells appears to hold estimated reserves of 4.7 Bcfe of gas, which is "pretty good for the first well out of the box," he said. 

"We'll drill in the thickest, richest part of the Devonian to determine just how much liquids we'll be dealing with" and how much more gas processing capacity may be needed, he added. 

Range, a virtually unknown Fort Worth, Texas, operator when its Marcellus results began to reach the industry's radar screen around 2004, now is producing north of 200,000 Mcfe/d from the Marcellus, mostly from southwest Pennsylvania, although it also has acreage in northeast Pennsylvania. The company is on target to exit this year with 400,000 Mcfe/d of Marcellus production and hopes to end 2012 at 600,000 Mcfe/d, said Walker.

In addition, southwest Pennsylvania also contains the much-touted Utica Shale zone. Unlike its Ohio counterpart, the Utica horizon tends to be gassy in Pennsylvania, said Walker. Range has drilled and completed the Utica's first horizontal test in the Appalachian Basin with an initial gas production rate of 4,400 Mcf/d, comparing favorably with Marcellus-zone wells. 

Range has said a "significant" portion of its acreage is prospective for the Utica Shale. In southwest Pennsylvania, the Utica sits below the Marcellus -- as much as 2,000 feet below it in certain places, said Walker. 

"It looks very productive -- 120-140 Bcf per square mile," he said. "If you start adding the three plays together in southwest Pennsylvania, you could have as much as 300 Bcf per square mile in that area, which is pretty substantial reserves." 

--Starr Spencer, starr_spencer@platts.com 

Note that available published maps suggest that the NE corner of PA has oil and wet gas - unlike most of PA

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