Replies to This Discussion

Permalink Reply by David on July 9, 2010 at 6:34am

I hope they migrate south and east

Permalink Reply by beth hamm on July 11, 2010 at 4:16pm

There are several others being notified in Fox about well pads. Newest one on DEP is Vera 1 H - 6H. Yes I think it is because the leases are running out. Gas companies would save themselves loads of money if they drill in the area from not having to re lease. Maybe the wells will be done by the time a pipeline comes through. Heard a show from Penn State U that said that it was not all bad for those of us who signed early because the royalities will start first as well and they claim that is where the $$$ is -- but a release would also be nice if not in a unit because I think it is only a matter of time before everyone who signed a lease will be in some or several units. It is coming to Sullivan. Hopefully the Government will not tax the Gas companies to discourage drilling.

Permalink Reply by john shorb on July 12, 2010 at 7:50am

Beth,

You are correct that income from leases should far exceed the benefits of signing a new lease - provided that 100% or the majority of your property is in a well play. Lester Greevey, prominent gas attorney, has figures showing that to date, only 18% of property owners whose land has been in a drill play see 100% of their property in the well pool. The majority only see a portion of their land in the pool. The balance may or may never be tapped by an adjacent well pool.

One other factor to calculate into your "windfall". Your windfall was further diluted by 3.8% when on March 30, 2010 President Obama signed the Health Care and Education Reconciliation Act of 2010. One of the big revenue raisers is a new Medicare tax on unearned income. This new tax consists of a 3.8% surcharge on things such as income from mineral income production - i.e., royalties from natural gas. So if you are successful, thanks for helping people afford health insurance. This new tax takes effect on January 1, 2013.

John

Permalink Reply by Chris on July 12, 2010 at 1:48am

As gossip begains to fly in the small town enviroments, I have heard that a gathering line was coming through fox twp by 2012 connecting well sites. I also heard chatter that some of the permits being approved for pad sites in Fox twp may never get a pad if the landowners continue to squabble with the gas companies. Remember pigs get fat, hogs get slaughtered!

Permalink Reply by David on July 12, 2010 at 2:31am

most who squabble either have nothing in the game or very little. Those with land signed do welcome them. I know I do!! US natural gas over foreign oil anytime!!

Permalink Reply by beth hamm on July 12, 2010 at 7:53am

Chris, maybe only a few people squabbling. Gas companies will go around the problem areas and just leave those peoples land undeveloped. There is more ways to skin a cat. Squabbling always comes at price for those involved in the squabble.

Permalink Reply by Chris on July 12, 2010 at 9:44am

Beth: Agree 100%

I worked the transcontental pipeline in the Benton area years ago, we did a lot of zig zagging around those properties who didn't want us there. Like I said pigs get fat, Hogs get slaughtered.

Permalink Reply by David on July 12, 2010 at 12:19pm

I hope common sense prevails!!!!

Permalink Reply by beth hamm on July 12, 2010 at 3:30pm

david --- some cut their noses off to spite their faces.

Permalink Reply by Jeff on July 12, 2010 at 6:54pm

Chris

A relative of mine signed with Chesapeake but was offered a small amount of money per foot by a different gas company to put two different pipelines across their property. The gas company told them that this has nothing to do with their Chesapeake lease and that if you let the pipelines come through they are more likely to get a well or be in a unit. They even said they may buyout the lease from Chesapeake in the future. He told them to put a well in the middle of the property and cut it up with pipelines all they wanted. Of course the gas company couldn't promise anything. But what if a person doesn't want their property cut up by one or two different pipelines 50 feet wide for peanuts? What should or can a landowner do to still be on good terms with their gas company and maybe be part of a unit or maybe get a well?

Permalink Reply by Chris on July 13, 2010 at 2:17am

Pipeline ROW's pay very little because in most cases the land can and will continue to be utilized by the owner, most pipeline outfits anymore will put the topsoil on one side of the ditch and the subsoil rock and clay on the other, 99% of the time the ROW will be brought back to better than before conditions. If a ROW is cut through timber, the owner will get a check for the timber cut as damage this can be sold to a lumber company or chip plant. Once the pipeline is marked, (flags) get an independent forester to estimate the amount of timber too. (Cost is around $40.00 per hour) then submit the estimate to the gas company and they will pay you what the forester said it was worth. Make sure that when they cut your trees they make them accessible to the lumber company by having them placed in only a few loading areas. Many times they will re-seed the area with grasses for wildlife enhancement. Gathering lines will be maintained by the gas company as long as there is production in the play area. I heard over the weekend there was property near Mainsburg where they used a bore method to go under his property; they went 50 feet deep under his 1/4 mile ROW. I don't know any specifics on why, but they did. Jeff, the small lot owner (Example... cabin owner without much property) will still be able to lease their gas rights and get a monthly royalty check within a unit, but the pipeline will go around them. My opinion although it isn't worth anything is this... I agree if I had 1/4 acre and they wanted to turn it into a Pipeline ROW I would be displeased with the amount of money I was being paid but peanuts are better than nothing, these companies deal with this everyday in the Marcellus Play, and are not in the business of fighting a pissing contest, they will pay what they can and if you’re not happy they will go around to avoid confrontation. The Marcellus is a very rich gas play, I have heard there is more gas here than in all of Texas. This isn't going away within the next 100 years. Bradford County right now has the lowest unemployment of any county in Pennsylvania. (That’s a first ever) Will Sullivan County be next?

Permalink Reply by David on July 13, 2010 at 1:46am

I think you can negotiate with the company who wants to install the lines. I believe you can specify how the land is planted. Hey, I doesnn't harm anything to ask. Remember and unasked question is 100% no, as soon as you ask you have a 50/50 chance to get a yes. Good Luck!

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