Replies to This Discussion

Permalink Reply by James Kerns on July 12, 2011 at 5:07am

Hi Edward, I have a small farm in Bloomfield Twp. and have had two offers, one a very unfavorable offer from Cobra Resources and another from Reserve Energy for $500/acre on a five year. I have contacted Chesapeake and their designated lease agents in Ohio (Kenyon Energy) and they told me they were not yet looking that far north. I have heard little for areas North of St.Rt.88 in Trumbull County. Penta Point  group states as their Northern cut-off to join their group, St.RT.88. If I had land that was "held by production" i would seek out legal help before i placed much faith in possible mis-information found on line, thats just me. I would like to hear more details on what you may have heard for Ashtabula Co., Trumbull Co., and Geauga Co.. But i guess we need to take some things with a grain of salt, as they say, right?

Permalink Reply by Ed Ganelli on July 12, 2011 at 5:59am

Hi James!  I'm in Wayne Twp., no lease on my lands or the neighbor's (he has 1500 - 2000 acres not under lease).  We went to ALOV's meeting in Champion last week (also found out there that it is the last group ALOV is signing up) and asked if they were signing up land in Ashtabula Cty. that borders Trumbull Cty.  They said they're taking land pretty much anywhere in the southern quarter of Ashtabula Cty., and while it's a gray area, the northern 2/3s of Trumbull were also a "gray" area only a month or two ago.

My neighbor has also been told of landowners forming a group in or near Kinsman, and that they are also accepting landowners in Southern Ashtabula Cty.  Add to that, there is the usual "a friend of my neighbor told me he heard..." kind of talk going on with many of the nearby residents which has just started, and it has me wondering exactly what is going on in the area...

Permalink Reply by Larry Andrew Chako on July 12, 2011 at 8:23am

I own a small parcel just outside the town of Champion. Does anyone know if ALOV is signing up landowners in Champion Twsp. in Trumbull Co.? If so, whom in ALOV should be contacted regarding the details?

Permalink Reply by Ed Ganelli on July 12, 2011 at 10:07am

Larry...here's ALOV's website:

 

http://www.alov.us/

 

Hope it helps...but from what ALOV said at last week's meeting, the deadline to sign up is to be this Thursday - and they aren't planning any other group sign-ups.

Permalink Reply by Larry Andrew Chako on July 13, 2011 at 11:26am

Ed, thanks for the information.

Permalink Reply by James Kerns on July 16, 2011 at 2:52pm

Edward, Hi, If you get any particulars on this Kinsman group of interested parties maybe you could try to get them to sign up here and get into the discussion. Also, from what i got when i looked into ALOV they had St.Rt.88 as the cut-off and you are the first person i have heard mention Ashtabula county, which is odd for them to have been excluded thus far as they look to be in the wet gas zone, formation thickness appears favorable(Utica) and i think i noticed a fault line or some other structure of interest by rockhounds. Thanks for keeping your ear to the ground, Jim 

Permalink Reply by Ed Ganelli on July 17, 2011 at 1:01am

Hi James!  Found out yesterday that the "group" of Kinsman landowners is actually 5-6 landowners north of Kinsman, some of whom have land reaching into Ashtabula Cty. in Williamsfield.  They're dealing with what sounds to me like a lease agent (They say they were told by her not to give info out...only know that her name is Bonnie), and that they aren't looking to form an actual group.  Also know for sure that ALOV was accepting land into Ashtabula Cty. in their final group (2 landowners I know of just north of 322 signed up before the deadline).

 

I also found out that Chesapeake has leased a large number of acres on Rt. 193 between Rts. 87 and 322 (Two relatively large acre farms, I've been told, along with several smaller properties) and that Chesapeake told them they were hoping to drill before summer 2012, if not sooner.  From what one of the landowners in the leased area said, they got 1500 an acre, 15% royalties BUT that the 15% would only apply on the first of 2 proposed pipelines to be installed on the property (HAVEN'T read anything about a royalty set-up like this in any leases I've looked at so far!).

 

Also, as I mentioned somewhere else in here, one of our township trustees told me that Enervest is purchasing an oil transfer pipeline from Dominion that was installed through my township just 2 years ago (our township right-of-way manual requires that the trustees be notified about any pending ownership transfers in utility lines located in public right-of-ways), although I wonder why Enervest would want a transfer line that is only an 8 inch (I DID see, though, that on the permit application that pipeline owner has the right to work on, replace, UPGRADE, etc. any installments relating to the pipeline...).  I'm hoping it's a sign of bigger things to come!

 

My neighbor, who owns somewhere between 1500 and 200 acres of unleased land (he's still checking to make sure 2 smaller parcels with existing wells have been cleared) contacted 2 companies, Kenyon and Cenco(sp?) to see what they're offering.  Both were VERY interested, but the Kenyon rep told him that Chesapeake has authorized them to lease land in Trumbull Cty. up to the Trumbull/Ashtabula Cty. line, but haven't authorized yet to lease into Ashtabula Cty.  I'm not sure what the holdup is, but have noticed that things worked almost exactly the same way, starting with only part of Columbia Cty. being leased at one time, then expanding to all of Columbia and only part of Mahoning, then on to all of Mahoning and part of Trumbull, etc. 

 

 

Permalink Reply by James Kerns on July 17, 2011 at 2:14pm

Edward, Thanks for sharing so much good information.

Its possible i was confused between PENTA Point group and ALOV as far as boundaries of interest are concerned. Too bad about that for me because that offer and lease looked pretty good all things considered.

 I hope the landowners in Kinsman have carefully considered what they are promising these Lease Agents in compensation, for legwork they can easily do themselves. I looked at VET-Virtual Energy Teams(their links appear on the right hand on your screen when on this site), contracted compensation amount as a percentage of your lease bonus money and production royalty combined. All i can say is whew, I was born at night but not last night, Big Money $$$$Right!

That Chesapeake lease sounds good, but it sounds like one of Kenyon's landmen doesn't know what the other is offering or the target area of interest, maybe? Also maybe there was some confusion on the landowners part between surface pipeline(sales lines) and the lateral runs of the production tubing in the target formation zones. Maybe the royalty was focusing on 15% on the first two laterals run and fracked then put into production.

I am shaking alot of branches to see if anything falls, so should any of my efforts bare fruit, i will post it here.

Permalink Reply by Craig on September 15, 2011 at 5:00am

PM me for information on "Bonnie"

Permalink Reply by Finnbear on December 14, 2011 at 6:36pm

I created an Ashtabula County, OH page here on gomarcellus.

http://gomarcellusshale.com/group/ashtabula-county