Replies to This Discussion

Permalink Reply by SA Frank on December 4, 2011 at 3:09am

Finnbear - see this comment from another string from yesterday. sounds like cherry picking for units to me.

 

Reply by psychosid yesterday

Just heard that ALOV/Buckeye Mineral does NOT have a hard offer for just anything in Belmont County.  Bob recommended looking at plat maps and reviewing what acreage was already leased.  If enough acreage was available for a unit, then he could submit it to Chesapeake but nothing is guaranteed.  This was completely different than what I've been told by some of the people I spoke with on the phone at ALOV/Buckeye Mineral.

Permalink Reply by psychosid on December 4, 2011 at 5:34pm

Bob Rea was in Belmont County tonight and he explained that they don't have anything at this time for Belmont County.  He recommended getting all your neighbors together and looking at the contiguous acreage that could be leased.  Highlight them on the map and see if it looks marketable.  He can use his lease and present it as a bid package to some oil and gas companies to see if there is any interest.  Oh, for his services, the landowner has to sign a commitment letter that holds them to 180 days so BMD can market your contiguous acreage.  It also somehow ties the landowner up for an additional 180 days if you don't like the deal BMD presents to the group.  He admitted that some people in ALOV/BMD mis-spoke when they were telling people on the phone ANY acreage in Belmont County. 

Permalink Reply by time will tell on December 5, 2011 at 1:12am

There is a place that they can put that 180 days and there lying but I can't tell them here .

Really , mis-spoke hmmm, the one who told me all of Belmont  was  

drum roll --------

BOB REA . 

Next lie please ...

Permalink Reply by Rich M on December 4, 2011 at 8:12am

Permalink Reply by psychosid yesterday

I heard $5100/acre bonus + 20% royalty.....was told someone asked how the royalty is calculated, and he wouldn't explain it in detail.  He's apparently saying it's gross proceeds but the language has been changed to what Chesapeake wants.  I'm guessing that it isn't a True Gross Royalty, so this deal may not be what it seems, if there even is a deal.  I agree, many held out this long waiting on Des, so it did help to that degree.  There still seems to be a lot of landowners still in his group and from what I'm told, a lot are showing up at his meetings.  However, I'm beginning to wander if he even has a lease worked out

 

Your pretty convincing!!!!

Permalink Reply by SA Frank on December 4, 2011 at 2:26pm

Actually this leads to a good question. is anyone on this board capable of answering how a gross royalty will be calculated on the different forms of the wet gas?  Obviously what comes from the well head will need to be processed.  so what will be the value, pre or post processing and if it is post how will you know what quantity came from your well head.  lets keep this board productive not negative.

 

Permalink Reply by Dan Warfield on December 4, 2011 at 3:45pm

Hello SA Frank,

I do not know how all this will be calculated, its going to be a cluster for sure.  One thing is for certain; its that we ALL need all these measurement precations within the lease... don't you agree?  Doesn't everyone agree?  Some of the leases from the Texas shale plays (that were actually agreed to by the major companies) will have six or seven different options in recording and measuring the gas/liquid sale and each option is USED.

In hindsight, the Texas attorny's who came into Belmont County a few months ago actually was probably not a bad thing... we all could have probably used the expert advice on things like this measurement.  We are so limited on what we know and what we are able to negotiate into a lease or out of a lease.   

Any response I apply to this forum is meant to be positive, informative and productive. 

 

Permalink Reply by psychosid on December 4, 2011 at 5:21pm

I was told directly by an oil and gas man that a barrel could be tested from the wellhead and percentages of each substance can be calculated from the barrel.  This could be used to determine the gross proceeds at the wellhead, or the landowner could let the oil and gas company process the ngl's and anything they lose in the processing of the gas is also lost by the landowner.  After talking to this guy for over an hour, he basically stated the lessor has to trust the lessee and get paid royalties based off of what the lessee receives from the sale of the gas/oil/ngl's, etc.  He couldn't believe some of the language in the example leases and stated how much has changed for the better on the landowner's side.  So we are all getting better informed to make good decisions in regards to the oil/gas leases.

Permalink Reply by 0i7okn54zwbdo on December 23, 2011 at 3:04am

Gross royalty is pretty cut and dry. If you get 20% of gross production that means 20% of whatever comes out of the well. If the contract allows for deductions (other than severance tax) for compression, refining or piping then that number will be affected. Most contracts stipulate that no more than 10% of landowner royalties will be withheld for such purposes. That means your 20% gross is a minimum of 18%. Condensate is treated much like oil. It is collected in tanks and trucked away. If wellhead price is $60/bbl then that is the price passed on to the landowner. Remember that liquids are sold from the wellhead to the refiner and the cost of that refining is priced in already. I hope that this is helpful. I agree, this board should never go negative. You folks (I don't live in Belmont) have a gold mine under your feet. You ought to get what you deserve out of it.

Permalink Reply by Monroe Co Landowner on December 15, 2011 at 1:24pm

Rich Mayeres when is his next meeting to sign up, When will lease signings be?

Permalink Reply by time will tell on December 15, 2011 at 3:00pm

who are you talking about monroe  co

Permalink Reply by Monroe Co Landowner on December 15, 2011 at 3:15pm

yes, im in monroe bordering belmont 

Permalink Reply by Shocked at SHELL on December 4, 2011 at 1:07pm

Here is a funny little note about DES's group most everyone thats in the group is HBP or doesnt own there minerals. So hey claims to have so many 1000's of acres, its people with bad title and HBP. You can't sell what do dont have, this is why companies willnt take him seriously and why he can say some companies havent paid his clients. Dan I see why you have signed just because you have filed affidavit of non-production on you 400 ac doesnt mean your title is clean. Please keep spreading false hope and propaganda to our community we will all be better in the end. Maybe some SARCASM is what we need. Wake up people I dont care what company you sign up with just make sure you dont hold back your neighbors with your IGNORANCE!!! Companies cant drill with out having drillable unit, so if you not with your neighbors you are against them. Signing later put you farther back on the drill schedule and the drill schedule looks like a pyramid. The later you sign as a unit the farther down the schedule you are.

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