Replies to This Discussion

Permalink Reply by Todd J. Scott on July 18, 2011 at 3:27pm

Dave,  I actually work with Long Consulting Group, L.L.C.  I assure you sir, we are a legitimate land service company working on behalf of Shell, or as their lease states "SWEPI LP" in Lawrence County.  It's common practice for the drilling companies to utilize service providers for their land needs.   Long/Shell actually have a field office set up at 1429 New Butler Road, New Castle, PA  (right across from the Food Lion) if you would like to stop down and get more information about Shell's plans and progress in Butler and Lawrence Counties.  Yours truly will be there most of the day on Wednesday and Thursday, but a lease agent is there most every day from 9-5, and can be there by appt. anytime.  If you're still not convinced that we're legitimate after your visit,  I'll give you the phone number for the guy I report to at Shell so you can verify us.  How's that sound?  : )  P.S. Tell your friends about the field office.  We figure the more people we can talk to and educate about what we're doing and how it all works the better off we all are throughout the process. 

Permalink Reply by Dave Best on July 20, 2011 at 3:27pm

Thanks for the info.   How long does Long/Shell plan to sign leases in Lawrence County  and how does the voucher work.

Permalink Reply by Todd J. Scott on July 21, 2011 at 3:14am

I wish I had the crystal ball.   Even though you would consider me having inside information even I get fooled sometimes.  All signs indicate that Shell is committed to develop this region and stay around for a long time.  Factors that will determine how long they stay include, but may not be limited to; 1.  How sucessful the first few wells are.  2.  Landowner's willingness to participate (lease their OGM rights) 3.  Price of Natural Gas  4.  Shell's overall health and interest in this area.  So far everything seems to be progressing along quite nicely. 

 

As far as the voucher is concerned, I assume you're speaking to the method of payment that Shell uses.  We call it a "Bank Draft".  You can draw a lot of parallels to an out of state check.  Basically, once you execute the lease you can take it to your bank and deposit it.  At that point it goes on the clock for the 90 banking days.  The bank views the bank draft as a  "collection item".  They submit the request for funds to Shell's bank in Houston.  Our team (Long Consulting Group" conducts a thorough search (125-150 years) of your property's history at the Lawrence County Courthouse to prove Oil and Gas ownership and prepares a title package along with the lease that gets sent to Shell.  Once Shell reveiws it for accuracy, Shell's administration staff then electronically approve the funds to be released from their bank in Houston to your account at the bank you do business at.

 

The purpose of the draft is to reduce the number of administrative errors in lease processing.  You get the draft upon signing, so there is no way a check can be missed from an internal check run or lost in the mail or things of that nature.  Generally speaking the drafts are clearing in 30-45 days. 

 

Keep the questions coming, like I said, we are here to share as much information as we can about the processes. 

Permalink Reply by Terry W. on September 17, 2011 at 12:41pm

My green piece of paper with a large amount of $, and accompanying paper will

be taken to the bank of Monday.

Todd, your detail is right on.....

My days are already marked on my calander.

Florida, here I come  Jan/Feb/March....

What do the people who sign do after their decision is made, log on,

and read, or onto next project?

 

Permalink Reply by James Kerns on September 18, 2011 at 3:17am

Dave, Hi, Thank You for sharing this information, many of us have heard bits and pieces of how the process works, very well stated. I have a question concerning those of us who own mineral rights but have an existing mortgage on our farm, current on our payments. Is the mortgage servicer notified of the possible transaction, and do they have the option of directing who controls the bonus money and or royalty payments?

Thank You

A second question if i may. Is SHELL interested in Ohio, specifically Northeastern Ohio, at this time? 

Permalink Reply by Todd J. Scott on September 19, 2011 at 2:07am

James,

Your question regarding the mortgager and if they have rights to directing the bonus monies that would be paid in return for executing an OIl and Gas lease.  Although this is not my field of expertise and there may be some unique circumstances that I'm unaware of, but generally the mortgager does not have rights to any of the monies nor do they have the power to interfere unless they were to foreclose on your property.  There is also a clause in the Oil and Gas lease that allows the Lessee (Oil and Gas company to whom you leased to) to step in and pay any back taxes or back mortgage payments in order to save the lease.  This is pretty rare that this happens but it has happened.  If the company does have to step in and make payments then the company has the right to withhold future royalty payments until they have recouped their costs.  The clause reads as follows in SWEPI's lease;    Lessee may, at it's option, pay and discharge any past due taxes, mortgages, judgements, and/or other liens and encumbrances on or against any land or interest included in the Leasehold.  Lessee shall be entitled to recover any such amounts paid from Lessor, with legal interest and costs, by deduction from any future payments to Lessor or by any other lawful means.  I hope this helps answer your question. 

 

Regarding leasing in Northeastern Ohio, let me know what you have and we can take a look at it.  There is some interest from Shell for lands located in Ohio.

 

Talk to you soon.

Permalink Reply by 2s72s0k9mm8gd on October 13, 2011 at 2:41pm

Thanks for your help on my Shell lease back in September. I feel Roger Kester treated me well and hooked me up with with some good addendums. So now I am patiently waiting for the big deposit into my account!

What are the Field Office hours @ New Castle? Someday I would like to check out the lease map.

Also was wondering if you could give us all some type of an update on what's going on in these parts as far as pending well sites and such.

Anything to report on The Patterson Well? I heard it was being tested Monday.

Is there a well going in @ Mines and Meadows in New Beaver Boro?

What affect , if any , will Hilcorp have on Shell's plans for this area? Have been told these companies have worked together in the past. That would be good news.

Thanks again for your help and hope you have some good news to update us with.

Permalink Reply by Todd J. Scott on October 14, 2011 at 5:07am

Glenn,

Glad to hear that you and Roger were able to work through the process.  Field hours at the office are 9am-5pm, although I was there the last two days and we were there til nearly 10pm.  I will ask you and anyone else reading this to try to adhere to the 9-5 unless you have an appointment though.  We have to do some real work at some point. :) 

 

Responding to your question about well sites.  I know they are preparing several new sites for wells they have permits for but honestly I don't know which ones or exactly where they are off the top of my head.  We're consumed with trying to obtain leases on unleased properties for  all of the wells in that are on the schedule and that is no small task. 

I did hear they were testing the Patterson well, I do not know the results of that testing.  I don't beleive anyone will truly know until we are able to connect to a pipeline and see some real production numbers.  Plans are underway for that already.

Hilcorp's effect is not entirely known at this point as I am sure they are still processing leases and recording them.  We are aware of what they have recorded and some of these landowners will have to be removed from units that Shell has scheduled to drill, at least initially.   Shell cannot pool a competitor's lease in to their unit without some kind of agreement in place between the companies.  At this point it is unknown if they will come to an agreement.  I have spoken to this several times in my posts.  Once you lease with the company that isn't drilling near your property you take the control out of your hands and put it in the hands of those companies to work it out.  Generally speaking the lands that are leased to the other company get removed from the unit.  If and when a deal can be made the unit can be amended to bring that property back in the production unit but the landowner misses out on the royalties from that intial well.   Time will tell, and I"m with you... hopefully they can work it out.

Permalink Reply by 2s72s0k9mm8gd on October 14, 2011 at 10:24am

Thanks a million for your prompt response Todd. The information is much appreciated. My experience with you guys has been A+.

I am a little confused as to why folks would sign off on a deal with unknown entities (to this area) when Shell is actually drilling and developing this area in earnest. You hear alot of squawking about the "evil" Gas & Oil Cos. but I can't help but wonder how much of this is self serving rhetoric coming from lawyers and their front men who just want a piece of the landowners sweet pie. Wish I could make a few quick millions that easily! Best regards and try to keep us posted.

Permalink Reply by Todd J. Scott on October 15, 2011 at 10:42am

Amen Glenn. 

 One last thing I would like to know from you.  In your previous post you asked me what the relationship was between Hilcorp and Shell.  THERE IS NONE.  I'm curious to know if anyone has told you otherwise.   There is no arrangement in place for these two companies to share acreage, trade acreage, drill wells together or anything of the sort.  Not saying that couldn't happen in the future, but landowners that have been told that as fact have been misled.  If you or any other landonwers have evidence of this I would like to know more about it.

There was a group out at the Lawrence County Fair passing themselves off as aggregating leases on behalf of Shell and they got some attention they weren't looking for from Shell legal.  This has been pretty common practice in some of the letters I have read from various groups whereas these companies aren't all out telling fibs, but they are definitely twisting the truth around to make it look like they are working with Shell, or in negotiations with Shell or somethign of the sort.  None of which is actually happening.

At any rate, interested in knowing more about that if there is anything to know.

 

Thanks,

 

--Todd 

Permalink Reply by 015334grltd9m on October 14, 2011 at 4:39pm

Todd, Ron Eiselstein here, two things:

1.  One of our landowners in Poland, just got a letter from Shell to call you guys in Newcastle, please advise.

 

2.  Lance is out of town but tells me he has not been in touch with you  recently concerning Hanni's property, please advise.

 

Thnaks,

 

Ron

 

Permalink Reply by Todd J. Scott on October 15, 2011 at 1:58am

Ron,

We are approved to take leases in several townships in Ohio as of recently.

Lance did try to reach out to me this week but I haven't got the answers he requested of me yet.  Trying to make some time now to go over the materials he supplied to me.

 

Thank YOu,

--Todd

• ‹ Previous
• 1
• 2
• Next ›
• Page