Replies to This Discussion

Permalink Reply by Brian Day on February 26, 2010 at 7:40am

I can think of a really ugly question or two to ask. How much property do the various commisioners and officials concerned own privately? Who holds their leases? What kind of a deal do they have? Those are horrible implications, but with this kind of money on the line, they have to be asked.

Permalink Reply by PALogger on February 26, 2010 at 3:09pm

Being as its county ground and multi-use, I think I remember reading there was a provision that there would be no drilling or pad construction allowed on site and no gas storage allowed. Not sure how much of that ground will actually be accessible with the no surface drilling provision. Even with horizontal technology they may not be able to get it all, and that would impact the rates. At least the county took the time to make provisions, I don't think it would have sat well with a lot of people if county ground got excavated into haul roads and drill pads.

Permalink Reply by Michael Karpiak on March 4, 2010 at 1:01pm

They probably wouldnt have leased the acreage if they couldnt get it all......unless they needed it to complete a unit. With any lease you should not allow gas storage and most companies will cross that off if you ask.but if you dont ask they will keep that in. I have heard horror stories about underground storage, whether it be gas or waste water............. People that allow that can expect trucks coming anytime during a 24 period. Who knows what kind of waste they would be putting in. Just make sure you add at least that addendum

Permalink Reply by Michael Karpiak on February 28, 2010 at 12:05pm

Your right Brian.........Those ugly thoughts crossed my mind also :-(

Permalink Reply by Tioga County, PA Gas Watch on March 4, 2010 at 7:58am

At least one of the commissioners has a lease - and it is with East.

Permalink Reply by Michael Karpiak on February 28, 2010 at 12:04pm

They probably settled for the low money because it is only 328 acres and no surface drilling.........They seem to pay more for bigger tracts .sort of one stop shopping rather then dealing with a bunch of landowners with the same amount of land. Neverthelessssssss its not good for the rest of us.........

Permalink Reply by Michael Karpiak on February 28, 2010 at 12:16pm

I read where East wants to drill 200 wells in Tioga County this year. They are sure pushing their leases around to everyone in Tioga..........I wonder if they want to lock up as much as possible before these other companies come in.....so that the other companies will pull out.............Then will they even drop their lease money even more?????? I hope not. From what they are saying now is that they dont "need" to pay higher prices because they have enough land now......I just think we have to weigh our options such as financial, or willing to hold out,,,not knowing how long that will be.........and evn more importantly, how many neighbors are signed with the company that wants to lease our property. Some of these companies are backing away from small parcels of land if they are surrounded by another company....If the property is not big enough to create a unit, the only option they have is to trade the property to a company thet borders them in another place............( I hope I was able to type in a clear way what I was thinking.lol )

Permalink Reply by Lynn Wigglesworth on February 28, 2010 at 12:46pm

Michael; that's exactly what I'm thinking. The East landman told me last year that they are forming 640 acre units and putting in one well...that is obviously just to hold as much land as possible with as few wells as possible. They are trying to get wells on the properties whose leases are about to expire first, so that might give me a year or two; the leases around me are newer. There is no pipeline in central Tioga Co. I know of one well that was drilled and shut-in two years ago...how long is that owner going to have to wait for his royalties to start coming in?

There are about 200 acres around me that aren't leased, and several hundred that ARE leased to East. What happens if they form a unit and just don't include those of us who are not leased? Would any other company be interested in a couple hundred acres in the middle of an East unit? Really makes it hard to decide what to do.

Permalink Reply by Michael Karpiak on February 28, 2010 at 1:57pm

Well.I am no expert but from what I have heard, some of the people who held out made out really well because the Gas Co. needed their land but IF the land was not needed and the landowner refused to sign, the company would drill around them right up to their border. I was told they can drill under your property BUT they can frac and suck out gas from under you. The other option was that they can ask you to sign a lease WITHOUT bonus money and just include you in the royalties. All of it is a gamble I guess and the Gas Co. is the Casino

That shut-in stuff is not helping, however if they wait until the gas price goes up and they open the well.......wouldnt the royalties go up as well?........Im not sure.

As far as would other companies being interested in a couple hundred acres in the middle of East.they might be if they can trade East for other land that is near one of their leases.....that would be an option. The odds are not as good though hoping for that. if there were more people around who were not leased the landowner would be holding better cards.......These are some hard decisions to make Lynn but like I said..we have to try weigh out all options of signing now.......maybe taking less money or risk losing more by not signing at all... I wish I had a crystal ball right now............if you have one PLEASE let me know.lol Good luck and stay in touch........They just sent us a lease

Permalink Reply by Michael Karpiak on February 28, 2010 at 1:59pm

OOPS mistake after i read this...............I said they can drill under your property..........thats wrong They cant drill under.......only up to your border

Permalink Reply by Brian Day on February 28, 2010 at 2:22pm

I have written a blog or two in this site concerning the practice of O & G companies of drilling shallow, ineffective, vertical wells and then creating units of maximum acerage around them just to hold leases indefinitely. Hopefully this will catch you up to date on what i have found out about the permiting process, the DEP, and the state's control over the permiting process. I will cut to the chase now and repreat; call your congreesman, state representative, senator, governor and urge them to pass something perminent or temporary to halt this practice. Remind them that they cannot gain any tax revinues on land that is held in limbo by a shallow useless well. Point out that more bonus money and royalties mean more income for the state. Point out that companies that have more money invested in the leasing process are more likely to drill sooner to recoup their investments. I have spoken with Matt Baker recently. He was very approachable and interested in what I had to say - even though I do not live in PA anymore. He has a place on his website for e-mail comments. i expect these othe officials do as well, but I have not checked yet. As for caving in to East right now, I would wait on that. Things are stirring in the area and if the useless drilling can be prevented all hell will break loose in the bidding arena.