Replies to This Discussion

Permalink Reply by PME on August 9, 2011 at 8:14am

Harry,

 

CHK is not leasing in Potter, they are leasing to the east.  The only leasing I know if is going on is in Abbott and Westbranch.  However, there are some pipeline companies that are active.

 

Patrick

Permalink Reply by Janice Lanphere Hancharick on September 13, 2011 at 8:20am

Jim, if you call them it puts you on the "needy" side w/little bargaining strength.  Drive over the hills and down the valley to Shinglehouse. Learn what happens when your negotiating clout is added to 100's of other rights holders in our region.

Hope to see you in Shinglehouse on this Thursday!  Read my response to Harry a few minutes ago. Our Group bottom line #'s are where we begin.

Permalink Reply by Janice Lanphere Hancharick on September 13, 2011 at 8:14am

Hello Harry!  The area you are referring to is very active with  1,000's AC signed on to the 4-County Leasing Group.  Many others across the 4-County region (Potter, McKean in PA, Allegany& Cattaraugus in NY) are coming on board as their leases expire this fall ... some into winter as well. We are represented by Co-eXprise out of Wexford,PA .  Over a dozen companies have reached out to the team working with us, wanting to know how soon  we will be going to bid.  CX is marketing the lease they helped this region's right holders develop.  Their legal team has crossed the t's and dotted the i's.  Hang on tight.  Our reserved bid begins @ $3,000 AC w/17% royalty.

We're having a meeting this Thur.(15th) @ the  Fire Hall in Shinglehouse, PA on 121 Puritan Ave..

6:30 for Newcomers  7:30 Members   Late-comers are Welcome. (We know chores must be done, and a day's work completed.)

Janice L. Hancharick --- Group Coordinator

E-mail: jlhanch@nc.rr.com

Permalink Reply by BW on October 5, 2011 at 9:53am

I thought I heard that Penn was in the area of Potter and McKean Counties as well - from what I have read they have invested in AC in both counties.

 

Any truth to this?

Permalink Reply by Janice Lanphere Hancharick on October 6, 2011 at 6:40am

If you're referring to Penn Virginia, it's true they are in the Potter-McKean area.  They were early-comers to the region that gave good $$$ per AC ... not sure about the %'s, but the offer was short-lived.  Getting what they wanted initially, their offers were lowered considerably for awhile, and now non-existent.  Some drilling must be done to make money before more can be spent.  In the meantime the players are now much bigger fish in the pond.  Any regional firms seeking AC to lease at this point in time are often being fronted by major players on the world market.

This was focused on, along w/other topics, @ last week's 4-County meeting in Shinglehouse.  At that gathering the audience represented over 7,000 AC  ... 50/50 in PA/NY.  Stop in to the next meeting @ the Shinglehouse Fire Hall, 6:30 PM, on Thursday, Oct.20th.  After that we won't meet again until Nov. 19th.  More specific questions can be addressed by phone (814.697.7644) but truly an extensive Q & A period happens at each meeting.  It is a continuing education process with info to take home.

There are occasions where private meetings are requested, and those requests are honored when at all possible.    E-mail: jlhanch@nc.rr.com

Permalink Reply by Janice Lanphere Hancharick on October 6, 2011 at 6:44am

East is now Royal Dutch Shell.  They spread themselves too thin and needed the influx of foreign investment to see them through the black economic hole that hit in 2008.  We are a world economy whether we like it or not.

Permalink Reply by BW on October 6, 2011 at 8:07am

So are you thinking that Shell will be the next big player in McKean and Potter?  Have you heard there is interest from any other bigger players? 

 

 

Permalink Reply by Janice Lanphere Hancharick on October 6, 2011 at 12:01pm

To the first question ... I don't know.  To the second ...Yes, I certainly have.  At last week's 4-County Leasing Group's meeting @ the Shinglehouse Fire Hall we discussed this very question.  Since spring over 12 companies have reached out to 4-County "reps", wanting to know when the Group will be going to bid.  THE COMPANIES WANT TO KNOW!   A solid committed group of people signed on earlier this year ... 1,000's of AC quickly became a part of the Group.  Another group of individuals is 1/2way committed,  just waiting for lease expiration dates to arrive.  Those individuals have done enough homework now to realize that company leases, or ones orchestrated  by those not experienced, don't get them the best deals. The final group (fence-sitters) are a cautious lot.  They've done considerable research, heard the horror stories of early leasing experiences, and don't want to get burned.  Who can blame them?  They want to know the exact price per AC and exact royalty percentage they will get before signing a  paper showing any kind of committment.  They don't realize the companies aren't willing to honestly throw out any figures until they know exactly how much AC is being offered.   Sounds like a catch-22, doesn't it?  A gas company rep (a.k.a. landman) will state a number.  If that makes people feel safe, they haven't been doing their homework.   I believe in a Group effort for many reasons ... basically strength in numbers. To have one's AC marketed through a Group effort means parameters are set.  Reserved bids are where the action begins.  Same with royalty %'s.  The Group has included every safety precaution, reclamation clause, extra benefit that's not often found in a company leasing document ... ones that specifically fit our region.  If offers don't reach reserve #'s, DON'T SIGN !   But to be in a Group, to get the best of what's offered in your region, the first committment must be made.  WHAT COMPANY IN ITS RIGHT MIND WOULD MAKE A SOLID OFFER ON AN UNKNOWN AMT. OF ACREAGE?    THEY are greedy.

Permalink Reply by Janice Lanphere Hancharick on October 28, 2011 at 4:28am

FYI:  4-County Leasing Group (landowners and OGM owners ... not always the same folks) will be tying things up for this year on Nov. 17th ... the last public meeting for some time.  Never leased or having a lease soon to expire, this is an opportunity to find out the most up-to-date happenings in the gas/oil industry as it affects our region.

The meeting begins Nov. 17th @ 6:30 in the Fire Hall, 121 S. Puritan Ave., Shinglehouse, PA.  4-County includes Potter, McKean in PA,  Cattaraugus &  Allegany in NY and additional AC on the fringes.  It will include take-home materials, a presentation, and ample time for questions to be answered.  Audience members often include folks "in the business" on the ground that respond to questions regarding drilling, tax implications, environmental concerns , pipelines etc..  Collectively we do our best to cover it all.  It's called group solidarity ... working for the benefit of all.

Everyone wants to know what $$$ and % companies are REALLY willing to pay (not what the landmen say).  The truth is  a definitive answer cannot be given UNTIL the companies know the accurate size of the package they are to bid on.        "What would YOU offer for an unknown?"

Harry, my response is not targeted just @ you.  Alot has changed since '06.  The only thing that hasn't is the landmen and they're song 'n dance.  Let them now offer you 10 times what you received in '06.  If you rec'd $5 - $20 per AC back then, the total today ($50 -$200 per AC) would seem ridiculous.  How much have the addendums, added benefits, and protections improved since '06? 

 The big players now in the Marcellus/Utica states are not just the old familiar names like Penn Virginia and Chesapeake, but often ones out of TX, OK, LA that have often sold off those holdings to gain entry into our shale for gas, oil and condensates.  Many smaller companies are financially backed by these "biggies" to help them maintain a local image.  Most of  the "biggies" have sold a percentage of their Marcellus/Utica play to foreign countries to keep the cash rolling in.

I hope this helps landowners and OGM owners understand why there is a need for collective action by a large group.  4-County is a large Group.  We as players ourselves, are only as small as we think.  Our success is  based on our determination to act as one, and allow an experienced, proven negotiating team "go the mat" for us.  THAT makes 4-County's membership the powerhouse  it is.

4-County Leasing Group

E-mail: jlhanch@nc.rr.com

Permalink Reply by KAnderson on November 10, 2011 at 8:02am

Can any OGM owner attend the Nov 17th@ 6:30 in the Fire Hall, 121 S. Puritan Ave., Shinglehouse, PA. meeting?  

Permalink Reply by Janice L. Hancharick on January 22, 2012 at 10:20am

Harry in the past 3 - 4 weeks ( and most likely earlier) landmen were making the rounds in your surrounding area re: lease renewals.  The $$ per AC was in the $45 - $75 range.  The people being approached are quite elderly, and fortunately realized how crazy a deal they were being offered.  They signed on with the 4-County Group after learning the reserved bid bonus payment $3,000 AC w/6% going to the firm representing, and reserved 17% royalty with 0% going to the same firm.  Others have done likewise.

Ask for a formal "letter of surrender" when your lease expires.  Good to have on hand.  Proof that what you know is yours is back in your hands.