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Friday, February 4, 2011

Gas Leasors Offered Mom $5.00 An Acre For Gas & Oil Lease

"Let’s Make a Deal"

We’ve all heard those words before, but who have you heard them from and what has been offered?

That question occurred to Mother in 2007, an educated lady in her 90’s, when she was approached over the phone by a gas company representative, and later when a gas company lease came in the mail. This happened “out of the blue” and surprised the whole family. The biggest surprise however was the whopping $5 per AC the company was willing to send her. Of course the offer also included the “standard” royalty of 12.5% as mandated by the state of PA. (Why wasn’t it mentioned 12.5% is the state MINIMUM?) All she had to do was sign, and she’d be a few hundred dollars richer. Impressive? No. It sounded more like “let’s make a steal” even back in ’07.

By Mother’s employing a down-state law firm for the next few weeks, the company raised its offer to (“Get ready readers…”) $13 per AC, but the royalty stayed the same!

That scenario marks the beginning of the 4-County Leasing Group. Is there any company needing to make a profit so badly as to offer up such ridiculous deals to rights owners regardless of their age, their education, or their knowledge of oil and gas drilling? I didn’t think so, and neither did Mother. With her blessing and backing, many professionals familiar with the new shale play were contacted for information. I learned that what nearly happened to Mom had already happened to countless others across the state. Early on many poor leases were signed. Poor not simply because of the $$ amount, but also because few environmental protections and beneficial clauses existed in these documents. Once understood … many early leases were enough to make a preacher swear!

How does such a sad situation get rectified? As retired teachers with over 62 years experience between us, small wonder Mother and I believed the answer was education. Putting materials related to the Marcellus Play in front of audiences was key then, and remains so today. Knowledgeable speakers have always given informative presentations to the group and public, and fielded questions when asked.

4-County members believe those who take the time to understand what is going on around them, seldom make foolish decisions. We are willing to commit our thousands of AC across Potter, McKean, Cattaraugus, and Allegany Counties to a Group deal, because we realize our strength in numbers gives us an edge that individuals and small groups don’t have. Whether one has 3 AC or 1,000’s, adding them into a common pot only makes more, and “more” increases clout. We have our own group lease that contains clauses allowing each rights owner to include “specifics” for his/her AC. Our own team of professional negotiators has a history and reputation for securing the best market price available. 4-County has brought together quantity and quality to level the playing field.

We have affiliated ourselves with Co-expriseMarketplace because it does have a record for garnering solid bids with companies holding A+ ratings . It’s 4-County’s turn to say “Let’s Make a Deal”.

Remember: This all started with one little old lady some company thought it would take advantage of, and therein lies the lesson.

Hope to see you @ Shinglehouse Fire Hall, 1-3PM, Feb. 5th … repeat meeting on Feb.12th , same time and location.

Janice Lanphere Hancharick



Anonymous said...

When you go to buy a car, is the first offer always the best? Of course not. It is not an exploration companies responsibility to make sure everyone gets top dollar for their lease just as it is not a car dealers responsibility to make sure you don't over pay for an automobile.

Anonymous said...

did she ever lease?-----

Anonymous said...

i smell a middle man

Anonymous said...

Let's make ME a deal. is what she means.
Ad nauseum ...
Do your homework. As exposed on this blog many times through the comments section, this is an effort by a private "middle man" company that is trying to inject itself into the very profitable gas lease/royalty transactions between rights owners and energy company.
The fee structure is what you need to understand, including this group's efforts to siphon off a fee on royalty payments as well as the bonus payments (lease fees) paid to the owners of mineral rights. Contact an attorney and ask him/her about this. Then you will understand it.
Pooling of mineral rights makes sense and there are some effective ways for property owners to do it without having to give these people money both up front on the lease and especially on the royalties for their "services."
You have been informed. What you do next is up to you.

Anonymous said...

You do recognize when the devil has coming a calling? Don't sell your soul.

Anonymous said...

Just keep the motivation in mind.

Her main goal is to put the deal together. She has no personal acreage in the game.

She gets paid by Coexprise only if the deal is consumated. No deal, no pay day for her

Anonymous said...

Right now they are paying up to $14,000.00 or more per acre. So a word to the wise is DON'T SELL YET! The longer you hold out the better! It's better than money in the bank!

I remember when the first wave signed up at $50 an acre and then the first round of holdouts got $500 per acre. The ones who leased for $500 laughed at the ones who sold out for only $50. NOW who is getting laughed at now that the "low ball price" is around 4-5K an acre and the saps overseas are now paying upwards of $14,000.00 an acre!

Don't let any middle man scam you for anything less than $14,000.00 per acre or YOU are the idiot!

If it's up to $14,000.00 already can you just imagine what it will be worth in a few years when "they" get even more desperate?

Anonymous said...

Is there a minimun that owners/leasers have to pay for enviromental fees?

Anonymous said...

Well there goes the good water supply.... Our will be ruined just like others have been. I do not want them anywhere near my property cause It would never be the same. Natural and beautiful. by the way I am from the Shinglehouse Area