Replies to This Discussion

Permalink Reply by Clinton44 on April 10, 2013 at 4:08pm

In my opinion forced pooling should be in place in all areas where drilling takes place.

For why should a neighbor who does not want to lease infringe upon my right to have my minerals developed to their maximum potential?

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Permalink Reply by Clinton44 on April 10, 2013 at 4:28pm

Here is a link to a study done in PA on the benefits of forced pooling. I can attest to the fact that the sixth well WAS drilled and fraced AFTER the unit was reconfigured and the lease holdout was drilled around, which might of suited them just fine, but I am sure the neighbors that were kicked out of the unit along with them dont invite them out to dinner very often....

http://files.dep.state.pa.us/PublicParticipation/MarcellusShaleAdvi...

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Permalink Reply by wyalusing jim on April 11, 2013 at 3:00am

pennsylvaians would benefit from forced pooling in another way also.

currently, companies like swepi (shell) in tioga county, chesapeake in bradford county and cabot in susquehanna county have things pretty well sown up in their operating areas. there is no competition for acreage within these areas, since there is no way for another company to lease acreage and participate in units. under forced pooling, other companies would be able to force the operator to allow them to participate as working interests.

this lack of forced pooling in pa has created a monopoly for operators within their areas of operation which has eliminated options for landowners.

we can see the effects in core areas of pa in that operators are offering low bonus and royalty payments as a "take it or leave it" proposition. second generation leases within areas of imminent production are far less than what the landowners originally signed for in many cases.

many mineral owners are being forced to make the decision to hold out and miss royalty payments, or take an inferior deal to ensure their participation.

wj

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Permalink Reply by Susquehanna Sally on April 12, 2013 at 3:01am

Too many variables to offer up forced pooling as a one size fits all solution.  

With forced pooling, sometimes the bug wins and sometimes the windshield wins.

Had i known then what i know now, i would have asked for a straight 8 year term with higher bonus monies.

coulda woulda shoulda

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Permalink Reply by wyalusing jim on April 12, 2013 at 3:31am

i certainly wouldnt try to paint forced pooling as a "one size fits all solution", just as i believe it to be disingenuous to paint it as all bad. as with most things in life, there are positives and negatives.

the harsh reality though, is that without some mechanism to avoid these "monopolies" going forward, landowners with modest acreage are going to be hard pressed to negotiate good deals for their minerals.

the latest proposal in the pa senate, "fair pooling", which only involved company to company forced pooling would have served the purpose. that was proposed over a year ago, but had little support.

i am sure that you are aware sally, that in many cases, companies are perfectly willing to avoid acreage and design units around holdouts, leaving them as stranded acreage.

wj

 

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Permalink Reply by Susquehanna Sally on April 12, 2013 at 3:45am

NG is looking up.  

Your last statement borders on sensational.  Stop trying to stir folks' emotions.  :)

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Permalink Reply by Susquehanna Sally on April 12, 2013 at 4:08am

Dennis..."it's called a joke, look into it"  Tommy Boy

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Permalink Reply by 29041431 on April 12, 2013 at 7:51am

We're all entitled to our opinions on forced pooling. The Forced Pooling that Clinton and Jim talk about is not the same forced pooling that the gas industry is attempting to inflict upon the State of West Virginia. Pennsylvania is far ahead of WV when it comes to infrastructure and landowner groups to be susceptible to many of the downsides of forced pooling. I certainly see the advantages of forced pooling in some of the examples provided, but you're also right when you talk about "one size does not fits all." West Virginia Forced Pooling is not the forced pooling of "holdouts," although the gas companies would like you to believe that. They talk about 1% of the property owners holding up the other 99% from production and instances where they are unable to find the heirs or someone is being unreasonable about royalties. Well, I understand that is the case some times, but if that's the  main problem, why do the gas companies always ask for legislation that only requires them to secure 50% - 75% of the leases they need to pool. The reality is that they have been offered Forced Pooling legislation at about 90% of leased property required but have summarily rejected those. Reality does not match the rhetoric. What they really want is a legislated mandate to prevent property owners from negotiating for the best possible lease terms, no matter how much aceage or percentage of the pool you own. They want to lock you in at 12.5% less production costs and little or no bonus. Their second choice would be to put the control of your property rights in the hands of an appointed body that would have the authority to do that for them and in the case of House Bill 3060, that would be the Oil and Gas Conservation Commission. For me, I don't want to place my future in the hands four Gas Industry people and one environmentalist, appointed by the Governor but that is what would happen under forced pooling in West Virginia, as currently proposed. To answer Dennis, I would have to say that the people impacted right away by HB 3060 would have been a portion of the group that has "old leases" from 50-100 years ago that would have experienced a form of ad hoc forced pooling by being included in the well spacing oversight by the OGCC.

Permalink Reply by wyalusing jim on April 12, 2013 at 8:05am

hey dennis!

i think i know which dennis you are. you certainly sound ok today!

sally is an old friend, she was applying her dry rapier wit, like a lash to my flailed back. sorta sadistic she is.

anyway, although we are certainly off topic in the strictest sense, our experiences here in pa, without any forced pooling, may be of some benefit to our shale neighbors to the south in west virginia, so i do think it neighborly to offer any real life experiences we may have for their perusal.

in no way would i think to offer advice though or try to interfere with what seems like a serious matter down there. that is their business and i wish them all the best.

wj