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Friday, July 10, 2009

GAS/OIL LEASING GROUPS

GAS/OIL LEASING GROUPS
Updates
All who joined a leasing group during the past two years, did so for two basic reasons. They wanted to realize a profit from their rights' holdings, and protect the environment. Group members chose to accomplish these goals through the services of lawyers, or professional, licensed geologists/lease-writers. A tight lease created for a group includes as many protective clauses as a company lease does for the benefit of the company. When the natural resource riches are realized, both sides of the table want to believe they've received their fair share of the profits.

Before most people thought about becoming a group member, informative meetings were held throughout our region. Similar in concept to a farmers' co-op, those who attended learned the larger the package of rights available, the better the deal offers would be. Also presented in those seminars were slides/videos that explained the impact of horizontal drilling on the landscape. It was compared to the controlled turmoil on site of a new house being built, then the landscaped finished product ... totally environmentally friendly. During the meetings geological drawings accompanied with explanations allowed the public to better understand why some counties on both side of the NY/PA border received large offerings for rights' acreage, while others perhaps just half the amount. The deeper the Marcellus formation, the greater the profit for all concerned!

Now in 2009 what has changed for the leasing groups? Has the economy begun to improve? A bit. Is there still a glut of natural gas and crude oil on the world market? Yes, hence low prices. Has the infrastructure that must exist to profitably reap the benefit of the Marcellus shale been put in place? It's growing daily. Shortages in the gas/oil industry --- from experienced personnel to rigs, to pipelines and water are each being dealt with in positive ways. Government regulations are working to catch up to the inevitable, i.e. dealing with the natural resources in a manner favorable to all concerned. Leasing groups have had to be patient. Thankfully they have not lost out on anything because they still have control of their gas/oil rights. This country (and indeed the world) will need these fossil fuels aslong as those resources exist.

Individuals striving for the "good deal", and group members collectively going for the brass ring, know what they want to achieve. Those same company agents that were knocking on rights' holders' doors a year or two earlier will soon be appearing again. The eagerness for access to the Marcellus shale will be the driving force. The positive impact on this region will be felt for decades --- but not forever. A knowledgeable public will make the difference. What will you do?

Janice Lanphere Hancharick 919.876.2917 glastar@nc.rr.com

4 comments :

Anonymous said...

Here we go again.
A knowledgeable public definitely is a good thing.
A knowledgeable public will know that gas rights have a significant value.
A knowledegeable public may know when there are personal financial motives behind a blog posting "in the public interest."

Anonymous said...

Thank you poster 3:10, this gal is grabbing for all she can get.

Anonymous said...

I talked with her and it sounds pretty sweat to me!!!!

Anonymous said...

I am a newcomer to the process and am completely in the dark.

Does anyone know the going rate for a 5 year lease.

If I have a small acreage, under ten acres, should I get less than others are getting because they have more?

Or should I get more, because without mine, no one can use theirs that is adjacent to mine?

I am not greedy. I want to receive a FAIR amount for my lease and for royalties, especially for my heirs.

Please advise - a PA landowner living in KS.