Replies to This Discussion

Permalink Reply by Mike on November 10, 2014 at 5:22am

PGE is offering $2000/acre at 12.5% or $1500/acre at 14% in Keating Township Potter County.

Permalink Reply by Tim on November 14, 2014 at 8:01am

thx Mike

Permalink Reply by Jack Young on November 14, 2014 at 11:26am

That offer was withdrawn in several areas a couple days ago. PGE isn't doing blanket leasing at this point, and their area of interest appears to have narrowed.  

Permalink Reply by Janice L. Hancharick on November 14, 2014 at 4:11pm

What sources are being relied upon to share this info?  Also, why the reason for this narrowing?  Possibly more competition than expected ... poor quarterly earnings in '14 ... an increase in interest for other Potter, McKean, or Tioga areas ... ?

Permalink Reply by Jack Young on November 15, 2014 at 4:56pm

PGE

Permalink Reply by S Wenk on November 15, 2014 at 3:17am

JKLM is making a lease offer thru T S Calkins & Associates for my land in Sweden Township. Offer is to be 2500 & 12.5%. Can anyone reccommend a lawyer from the area that could review the lease agreement?

Permalink Reply by George Donovan on November 15, 2014 at 11:37am

Acker and Larsen in Coudersport or Greevy & Associates in Williamsport are a couple of good ones.

Permalink Reply by S Wenk on November 16, 2014 at 1:25am

Thanks. I know of Acker and was hoping he would be recommended.

Permalink Reply by Janice L. Hancharick on November 16, 2014 at 6:09am

Thanks for responding quickly George.  Keeping up w/individual questions "takes a village!"  Glad we're from the same one. Your recommendations were both very good.

I'm hearing a variety of #'s being tossed about across Potter and Tioga, and a few in McKean too.  It's frustrating to seldom get the whole picture ... eg. length of lease, renewal #'s, and possible deductions.  Att'ys are necessary to fine comb lease wording, but all of the above should be "out front" along with $$ and % in company offers.

Can't companies talk turkey before they add the stuffing?

Permalink Reply by Jack Young on January 13, 2015 at 1:58am

I learned the other day that Dominion is offering the Utica rights under its 1,300 acre Sharon Storage Field (in Sharon Township, located in NW Potter County) for bids. (This is being done at the same time as they solicit interest in their much larger Sabinsville Storage Field, located primarily in Tioga County.) The process might give some clues regarding potential industry interest in the northern tier of townships in Potter County.

 

 

 

Permalink Reply by paleface on January 13, 2015 at 3:34am

 Jack,The Sabinsville storage field is very close to the Neal pad in Chatham. The people that own the land above the storage the Sabinsville storage field were told they could not lease the Marcellus gas rights.Dominion would not permit the drilling through there field at that depth,not sure how Dominion can sell Utica under that.I didn't think they owned the rights. This is going to be interesting.

Permalink Reply by Jack Young on January 13, 2015 at 3:45am

Most old storage leases cover all depths, so Dominion owns the rights subject to whatever royalty was reserved in the old leases (almost always 1/8th). They wouldn't let anyone drill in the Marcellus because it's too close to the Oriskany storage reservoir - the fracs would penetrate and drain the Oriskany too. But the Utica is deep enough that it can be developed without any risks to the storage field itself. The storage field is a beautiful block of acreage, and they've owned it without any title issues being raised for over 60 years. So this could attract some serious industry interest - possibly even a new player.

For the landowners, this is a lucky break as they'll finally get some royalty income from their old storage leases if/when drilling takes place. Those $2/acre/year storage payments get pretty depressing after a while when everyone around you is getting big lease bonuses.

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