Replies to This Discussion

Permalink Reply by Rich Koehler on May 14, 2011 at 8:40am

Quebec Energy is headquartered in Dubai.  They may be working with Devon, but you're talking about buying our own petroleum through a different country so far as I can see.

I'm in Wayne County.  The Izaak Walton league here owns 275 acres, more or less, in the northwestern corner.  We got an offer from Quebec and another from Avalanche.  They're both for $250 per acre, which is the going lowball offer in the county.

 

Those reading here might want to check into Mohican Basin Landowners.  This is a group with some very talented people at the top which has already got about 40,000 acres on board.  It was started primarily by those whose property is included in the Columbia Gas storage lease and have found their storage lease has been sold to Chesapeake Energy.  The MBL has retained a very, very good attorney in Dick Emens out of Columbus - check his credentials - and they are expanding their area of membership rapidly.  Check their website, which is still undergoing a lot of work but contains some very informative links.

Permalink Reply by Rich Koehler on May 15, 2011 at 9:17am

Joe - I may be biased by experience, but I strongly suggest you visit the Mohican Basin Landowners site.   The attorney for the group does not necessarily agree with the Chesapeake position about them having the right to drill.  There are, last I heard, about 38,000 acres in 4 counties signed on with this group, but that was a week ago and it's growing fast.  Their website has helpful links for you.

 

There is apparently no problem with drilling and casing through the Clinton storage area here to get to the Utica Shale below it.  If there was, I don't think Columbia gas would have sold those storage area leases so quickly.   If there is some difference between the Clinton Sandstone here and in Stark County I would be surprized.

Permalink Reply by drill bit on May 31, 2011 at 3:18pm

Actually Quebec is headquartered in Colorado and they only provide leasing and abstract work for Devon.  I'm also wondering about the statement "you can only sell your mineral rights once"?  Were you contacted by someone who wanted to buy your rights or lease them? 

Permalink Reply by Rich Koehler on June 3, 2011 at 12:53pm

Follow the trail a little further.  Their world headquarters are in Dubai according to what I found with a simple Google search and a little time.  Devon is in there, but the trail doesn't end with Devon. 

 

The bottom line I am concerned with is simple - are we going to end paying the same foreign companies we now send so many dollars to for the privilege of using our own oil and gas?   There has to be some way to keep the dollars here. 

Permalink Reply by Rich Koehler on May 16, 2011 at 1:36pm

Don't take the company's word for anything. Get an attorney experienced in oil and gas leases, preferably one up to date on the latest technology in the field, to look over the storage lease you have. Dominion would love to have you think they own exclusive rights to all the layers under your land and that no one can drill through their storage area.

All I can say to that is it makes no sense that all the drillers say it perfectly safe to drill through aquifers and there is no risk of damage or contamination to the water supply. If they can do that through loosely packed water bearing soils or rock layers, why not through something as dense as the Clinton Sandstone?

I repeat, do not take anyone at their word in any of this stuff.

Permalink Reply by 0i7okn54zwbdo on May 18, 2011 at 5:24am

Joe, there are several companies in Wayne county but I know of only one that is interested in taking the risk on storage field leases.  If you're interested I can get you the name of someone to contact.

Permalink Reply by Rich Koehler on May 19, 2011 at 11:11am

A friend of mine got an offer for $300 in Plain Township of Wayne County.  BTW, the MBL is now representing over 45,000 acres.  You really should at least look into it before doing anything.  You can only sell your mineral rights once, so why rush and risk getting into something you'll regret later?  The people who want your rights won't do anything with it for a couple of years - they need to get 640 contiguous acres before putting down a well, and that well will cost them over $5 million, so they don't want to go around punching a bunch of unnecessary holes in the ground.  The landman may want you to hurry, but you should be the controlling party in any dealing with them.   They want what you have more than you want what they are offering.

Permalink Reply by Josh on June 6, 2011 at 2:39pm

Well said Rich, we are still in the early stages of this play.  I think everyday they are finding more effecient ways to extract these resources.  Your absolutely right, without our land they have nothing.  Not like they can just pack up and try somewhere else, what they want is right underneath us.  Last time I checked they not making anymore of it either (land that is).

Permalink Reply by 0i7okn54zwbdo on June 6, 2011 at 7:36am

Joe, I've done some digging and none of the smaller producers are willing to fight CHK over this issue.  The theory is that it'll be a legal headache for years to come and the non-storage zone leases may end up being unusable.

Permalink Reply by Finnbear on February 25, 2012 at 5:31pm

Marcus,

I'm interested in the storage field issue. Any info you could provide would be greatly appreciated.