street machines

moving sale

MOVING SALE EVERYTHING MUST GO RAIN OR SHINE- LOTS OF HOUSEHOLD ITEMS AND FURNITURE FOR SALE July 9, 10, 11- We will follow the CDC recommendations for safe distancing. Please do not attend if you are sick. Masks are recommended 68 Watson Farm Road Austin pa 16720 8:30 am to 5:30 pm Follow the signs from the intersection of Rt 6 and Rt 872


Solomon's Words for the Wise



Southern Tier Polaris, Olean, NY

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Solomon's Auction & Yard Sale Page


Tuesday, June 8, 2010

4-County Group News:

4-County Group News: An Ever-Growing Presence

In touching base with the audience at the March 27th meeting in the Baptisit Church, Shinglehouse, and all 4-County group members across the country, this up-date serves to inform. It is newsworthy because it involves well over 250 people directly and their extended family members, plus all businesses, educational institututions, and political entities affected by the Marcellus play in our region. The spreadsheet of members is amended weekly as we continue to grow ... over 3,500 AC added since the beginning of April, and the count keeps rising in all 4 counties.

Readers who decided on a group venture know why they did it, i.e. better bargaining power for gaining the addendums, protections, benefits, higher $$$ per AC, higher royalty %'s ... a choice over what bid offer is acceptable. A group gives rights holders something to look @ besides a company's version of what constitutes a good lease.

In April the 4-County Gas/Oil Group went to bid. The size of our AC package being offered has been revised considerably as we continue to grow, but a time frame exists. By the end of August/early September there will be several bids to look over. As each one is considered, the pluses and minuses will be weighed. Bids slow to come in are caused by the large AC offering that is 4-County as company abstractors review courthouse records to confirm that folks really have what they think they have in the way of rights. These companies want the AC for sure, but do not want to pay for rights that don't exist.

I remind people that while we're looking @ a 4-digit pay-out per AC with the liklihood of a 5 yr. lease @ 15% royalty minimum, there's more to consider than $$$ and %'s. It's the fine print that can be a kicker if the lease benefits the company more than it does you. Energy companies are like every other business in that they must make a profit. Group members must profit too. How you do it is your choice.

The ever-growing presence referred to in the title must show itself to be a healthy economy for our region, and all that it takes to make it happen while remaining environmentally conscientious.

Janice Lanphere Hancharick


Anonymous said...

Marcellus Shale assets considered valuable CEO John Pinkerton said

If I sold today for $14,000 an acre, I'd be selling it for a quarter of what it's worth," he said.

I'm glad to read that Mr. Pinkerton has such a high opinion of the value of acreage in the Marcellus. I think that quote of his should be kept in an easily retrievable place in the home of every landowner in any portion of the Marcellus where his company operates and where they are seeking out additional leases. Most importantly, I think any landowner who has a landman who represents Range come to his house should also trot that quote out when the discussion relates to fair value.

My take is that Pinkerton is being conservative as to the value of the acreage. Based on estimates from early last year (that have since gone up), recoverable reserves for a horizontal well are put at about 2.5 BCF with 80 acre spacing. This works out to 31.25 MMCF per acre. At $3 net per MCF (I used $4/MCF less $1/MCF for F&D costs), that works out to $93,750 per acre. Even with an average royalty of 15%, the value to RRC would come to just under $80,000 per acre. I realize their are costs associated with processing and transmission, but the general valuation would still be north of $75K.

As acreage is moved to the proved column, recoverable estimates will move up and that will directly increase valuations. If gas prices recover to more normal levels, watch out. Acreage values will easily exceed $100K per acre.

Anonymous said...

The unmitigated gall and barely disguised financial motives of this poster know no bounds!

Anonymous said...

It is what it is!

Anonymous said...

Please have your water tested by a professional company so that you have a baseline for recourse when these folks destroy your home. Non acreage owning landowners will have to join together to file lawsuits when the time comes. This is all about them making money with a "oh, by the way," tiny addendum added on about being "environmentally conscientious."