Lensman & Associates is forming a group in Belmont County. Anyone with acreage in Belmont County should contact this firm quickly if they are tired of waiting for an offer. They will submit bid packages October 10th and finalize bids on November 5th. They are negotiating to get the full bonus before December 31st so it applies to 2011 taxes. Taxes are almost guaranteed to increase in 2012 for both federal and state. With the recent announcement from Chesapeake about the production of the well in Harrison County, this offer should be fairly good. The XTO deal a few weeks ago is looking like 19% on the net royalty, not on the gross and $4950/acre bonus. The new deal should be better than what XTO was offering.
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RE: NY. NY had a moratorium on horizontal drilling for several years. It did not prevent companies from sinking a vertical shaft w/sm. fracks that allowed for gas removal from the total wellbore . It turned many properties into Swiss cheese. The intent of these companies was to make a reasonable profit, hold the AC by production, and outwait Albany's lawmakers inevitable decision to lift the moratorium. The landowners always heard that "lifting action..." was so far down the road they should be thankful for any kind of lease income, and they signed some very poor lease documents ... many that will literally never expire. There is so much to this story ...
Focus on OH, but learn from your neighbors to the east. You don't have to put up any buildings to keep a wellpad from being placed on your land. What kind of a lease are you considering signing anyways?!! Drilling companies aren't evil. They lawfully must abide by the lease wording, and if the landowner allows a wellpad on his land then he has the authority to reasonable placement of the site ... may-be on the far side of a stand of trees, etc. and mostly out of sight, or right next to the road so it's easily accessed by the gas company ... easy in, easy out, less soil impaction. A good lease is not all about the numbers! Clauses that provide reasonable mutual control are a worthy and attainable goal.
Groups hitting a brick wall in negotiations often have well-meaning knowledgeable representation that is not experienced in how the BIG BOYS play. The rules on this playground are not advertised but they are many. Smaller companies are often used to garner leasing agreements knowing the public trusts the regional players more than world-wide entities, and are not so scarey to negotiate with. You know, the good ol' boys. Leases obtained using this strategy are quickly flipped to (you guessed it!) the same major companies that professed your Group's AC wasn't good enough to get their attention, and certainly not worthy of a great deal. Either your group may become split by discension, (the old divide and conquer ploy) or tired of the waiting game as other groups seem to be getting their money. There is a difference between patience and driving a parked car. What point are OH Groups at?
Sometimes leaders know when it's time to reach out for a new strategy, look for a new way to skin the cat. The latter can be accomplished, but the first step must be taken. It has happened. Not all Group stories in PA have turned out sad. Several ( especially along the OH border!) have realized very positive results. We all learn from each other.
JLHancharick
4-County Leasing Group Coordinator (PA/NY)--- one of those groups that knew when it was time to bring in our own BIG GUNS.
very well said ,there is way too many leases signed that were only understood fully where it said we get money in a few weeks . This is a good morning for me to look over the site and understand what is really happening , it is easy to see that delays in payment ,and other stories can and will make people feel they are missing the dollar boat .this is how a group can be separated , then the dollar value will drop .Although the clauses in the addendum is the real reward for our future a good upfront bonus will make life easier until the units are put together . After speaking to a well connected company official my latest information has proven that landmen have the responsibility to go back to the company to ask for an option to be approved because they only have limited ability for certain changes.But unless you are really needed with a large block of acres or are in a solid group they will only make the easy changes .This is why we as friends and neighbors need to pass on all offers and changes that were allowed so everyone can get a better lease . The information posted from the companies on production is done to show how good this will be overall to the countries need for oil and gas and if they can get public support as well it will keep the laws to a point to still allow them to proceed. The reports also attract stronger investment groups with the capital to allow for quicker drilling and the related costs . Also the company stock will be affected for the best and rise when it truly gets absorbed in the stock market. But the truth should make the acre vale rise by others wanting to get into the boom which should trickle down to a little more giving to produce a more land friendly lease . A little time will help us all.
and new group posting as well as
Very
yes that is true mickwer. I want to ask everyone how important is land to you ? Is it just a money maker or do you really care about the quality of your land for generations to come ?
I know we can have both . I don't hear anyone commenting on what if a o&g company dumps spent frac water at night or dumps when no one is looking , in a creek or threw the woods to save thousands of dollars , does this sound impossible ? Well it's not , it happened to me .
I want to make this very CLEAR I am PRO OIL and GAS ! I want every one to be aware that their are a few out there that could care less about you and your hard earned land or the environment .
The amount I lost in revenue from non-foresting products was more than the amount of the sign-up bonus and nothing has been done to refund our losses and it was done on purpose to save thousands in hauling and disposal fees .
I want to be perfectly clear I am PRO OIL AND GAS PERIOD !
Lets be aware of the whole picture not just the sign-up bonus !
The looser's that did this to me are wanna - be big oil companies .
My advice is concentrate on the best terms that we can get with out being overly greedy and we can win both way's !!!
God Quit making land along time ago and we only have one shot to do it right !
How was frac water dumped on your property and the US EPA and Ohio EPA didn't get involved? If you're in Ohio, I have a contact in Logan at the Ohio EPA who will not let this go unnoticed. I don't doubt that this could happen as some employees for these companies will do just about anything. I'm not sure why a driver would dump his load when he's paid by the hour.
Mickgwer , I feel the same way , I have had many sleepless nights over this . There will be much more revealed soon.
Many people are working on this all over the country .
We want a good lease for all of us and our lands protected for generations to come.
DRILL BABY DRILL ...
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