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Thursday, February 6, 2014

OGM’s TARGETED!

OGM’s TARGETED!

There’s good and bad in having one’s OGMs targeted. Following the recent history of Potter & McKean’s oil and natural gas development (or the lack of it) the focus moved from what sorry deals the early ones were, to let’s develop marketing strength by joining together to improve the deals, and finally let’s get energy specialists working for us that totally do this for a living. Group members WANT to be the target of companies looking to develop OGM’s. Is that good or bad? It depends on the goals landowners have in mind.

Area rights’ holders learned their lesson early, i.e. looking out for #1 meant few dollars per acre ($10 - $500), promises to drill that did not involve a timeframe nor specific depth, and reclamation clauses that were not nearly strong enough to protect surface resources nor home wells. In this case being some company’s target became a dismal outcome that for some families will never end … but the money on the first page sure looked good.

The entire country has gone from dismal economy to a more hopeful one during this decade, driven enormously by its sub-surface resources, expanded energy needs @ home and abroad, and new, cheaper means to develop those resources. Bit by bit the companies making land grab strides that landed them in sorry circumstances in those early days have begun to recover.

The low market prices, few pipelines in areas ripe for drilling, and fewer processing facilities … all were situations that kept O&G firms teetering financially, buying each other out, entering into joint ventures (JVs), and “Yes” dropping individual leases like hot potatoes w/o telling the folks involved. One rights’ holder will never be #1 to a company. However, back-in-the-day circumstances the public thought would never be repeated are beginning to creep into this region again.

Recognizing the sub-surface resources (Marcellus, Utica, Burkett, & ones yet to be identified), the power of Group size and savvy membership, along with a diligent, skilled team of negotiators/marketers that have kept 4-County in the forefront of O&G firms’ radar --- GUESS WHAT? WE’VE BECOME a TARGETED AREA! J How does one know we’re in the cross-hairs? These companies have begun to send in their landmen to pick away @ rights holders with $lim offering$ and industry-friendly leases again. It’s a logical step for them because they would rather pay a few hundred an acre, than thousands an acre. For those who fall for this … like the Marine’s Marine Chesty Puller said “we’re advancing to the rear”. Is that the target rights’ holders want to present? Anyone having financial concerns cannot be faulted for wanting to make such deals, even if today’s, tomorrow’s or the next decade’s end results negatively affects family, neighbors, and our beloved PA Wilds. We live in the present too.

A consistent happening just before a region “goes to lease” is an influx of landmen striving to amass cheap leases for whatever company they represent. It’s happened time and again throughout the Marcellus. That it’s begun here means we’re rapidly approaching the cross-hairs. Sometimes it’s good to be “in season”!

Janice L. Hancharick
E-mail: jlhanch@nc.rr.com
919.876.2917

7 comments:

Anonymous said...

I just don't understand. Are you for or against drilling? As a previous comment stated. Do you get paid by the gas industry? Just like that movie I watched the other day. I can't remember the name of it, but the gas industry sent in a guy from out of town, pretending to be against drilling. Only to set him up to be a giant liar. They were playing on both sides of the fence. Assuring in the end, they got what they want.

Janice Lanphere Hancharick said...

I'm definitely FOR drilling, but not just any drilling. Compare to long-distance transportation. Rather ride in a buckboard across country, fly or drive a car? Choices are out there for leasing too, but will you pick one that favors the company over your personal well-being and that of your region's?
The lack of solid leasing opportunities beyond low market prices (which is no longer true)has been caused by a bottleneck in infrastructure. Industrial end-users cannot get the product fast enough ... cannot get it flowing in the right direction. Pipelines have typically been set to flow one way or the other. Now companies need to have flexibility in getting product flowing to where it's needed. This winter natural gas/oil is needed everywhere!
Come to the Group's next meeting March 12th in Shinglehouse 5:30 @ the Fire Hall. This will give you an opportunity to ask more questions and see where our focus is.

Janice Lanphere Hancharick said...

Sorry comment #1. I neglected to respond to your 2nd question, but you also forgot to tell me the sources of your income. Funny how everyone curious about my $$$ seems to fall into the same category.

Hand to God, my monthly checks come from my teacher retirement pension, and Social Security. That's it! I will not entertain more questions about this subject.

Anonymous said...

These are NOT "meetings." This is a real estate sales pitch. Not saying there's anything wrong with it but this notice should point out that the promoter of this is seeking to advance a sales pitch for your gas, oil and mineral rights so she can profit from them. The language does not make that clear. It is always masked as some kind of public notice or news release rather than an advertisement for real estate conveyances.

Anonymous said...

It's very clever how she frames the money question, to only mention her current monthly checks.

The issue is and will remain, are you in a financial relationship with CX-Energy, where you will (future tense) get paid from CX Energy if and when a deal for OGM's is completed?

I am not against anyone making money, what I am against is Non-Disclosure of a financial relationship when I am dealing with someone. The answer is either Yes or No.

Further, I would raise the question that as CX-Energy is now a Pa Licensed Real Estate Brokerage specializing in oil and gas sales and leasing, and you are not a Pa Licensee but are representing them or are getting paid by them, you are treading in very dangerous areas with the Pa Real Estate Commission for practicing without a license.

Anonymous said...

We have been hearing the same BS flim flam from these people for years. Look at investor presentations for any area E&P firms, Seneca Resources has a good one. It will be years before any significant development happens here. We are simply not in the sweetest of sweet spots. When the time does come, find a good attorney well versed in OGM's.

Anonymous said...

Will She or won't she, make any commission from any leasing deal? Seems easy enough to be answered for an educated person.

my real estate agent is honest and tells me how much she will make from her work selling my house. Not really a big deal to disclose it upfront, but evidently it must be a big deal,
a closely guarded secret or an embarrasment in this case, in my opinion