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| Posted by: Perm Dude
- [154552311] Mon, Nov 23, 2009, 14:15
I'm using this thread to try to park some of the many readings on Marcellus Shale.
I'm a member of the PA LWV and we're trying to form a consensus on this issue, which is becoming more and more important in PA. My particular "speciality" will be the Taxation/Regulation aspects, particularly in zone and planning regulations and severance taxation. In March I'll give a presentation to my local county LWV group on this area, and there is lots for me to read over the next several months.
If anyone has anything interesting please feel free to post it. |
| | | 1 | astade
Sustainer
ID: 214361313
Sat, Nov 28, 2009, 00:10
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A piece on the debate in upstate New York
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| | | 3 | Wilmer McLean
ID: 391047292
Sun, Nov 29, 2009, 03:51
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Ah, astade beat me to it!
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| | | 4 | Perm Dude
ID: 154552311
Sun, Nov 29, 2009, 12:48
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That anti-Kennedy article is just one big classic strawman. It makes up a statement "If one didn’t know better, you’d think Mr. Kennedy makes no money from the oil business" then proceeds to knock it around.
With the Shale there are some amazing opportunities for landowners. But mostly they are at the mercy of the oil/gas companies, since many landowners have no context with which to judge whether an offer is a good one or not. Municipalities are also scrambling to catch up, since there are few zoning or SALDO regs in place to cover the overlapping areas of jurisdiction.
New York State has two real problems that Pennsylvania doesn't: Because there is no real history of mineral extraction in NY, there is no body of law to cover mineral rights (as opposed to surface rights, typically owned by the landowner). Likewise there is no body of law intended to protect each side in the inevitable disputes that arise from sub-surface work.
The other problem is the drinking water. Not a lot of people realize that New York City, which has the best tap water of any major city in the world, gets its drinking water unfiltered from upstate New York. They are understandably pretty protective of the areas around the reservoirs and are against any development which might impact their water.
One thing that isn't often talked about (and which isn't in my area, unfortunately), is that the more natural gas that hits the market, the more likely it is that gas companies will build larger distribution networks and the cheaper energy will be for everyone, but particularly in the Northeast where natural gas is hauled in trucks. Environmentally it might be safer to deliver gas through pipelines closer to the points of use than to drive thousands of trucks hundreds of miles a week all over the place.
It's a tough, but interesting issue.
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| | | 5 | Perm Dude
ID: 154552311
Sun, Nov 29, 2009, 12:49
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Also, some of the New York shale might be radioactive.
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| | | 6 | astade
Sustainer
ID: 214361313
Tue, Dec 08, 2009, 02:02
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A follow up article about the pit-falls regarding natural gas exploration: NY Times article
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| | | 7 | Boldwin
ID: 3011066
Tue, Dec 08, 2009, 10:54
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but particularly in the Northeast where natural gas is hauled in trucks. - PD
Are you absolutely sure natural gas is transported that way or are you talking about propane?
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| | | 8 | Perm Dude
ID: 5510572522
Tue, Dec 08, 2009, 11:23
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Where there are no pipeline distribution, truck hauling is the way to go (I'm thinking about distribution to the end user). Propane would be distilled from the natural gas at the plants and hauled. But if there was a system to get natural gas to the end user we could eliminate much of that hauling.
I have to do more research on that point (and again, links welcome) but my understanding is the things which use propane (such as a propane furnace) will usually work on natural gas without a problem as well.
Here in the Northeast there is very little pipeline distribution for natural gas (I'm awaiting a call back from an industry spokesman to press him on the point, but I *think* that they will be planning pipeline distribution networks to larger residential and commercial areas as they get the wells up and running). In fact, we've been trying to get a natural gas pipeline to come through our little town here, to give folks the option of using it.
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| | | 9 | Bauxman
ID: 5111251410
Mon, Dec 14, 2009, 11:25
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There's a new daddy in town Perm Dude. Exxon bought XTO Energy who has reserves in that neck of the woods.
XOM Buys XTO
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| | | 10 | Perm Dude
ID: 5510572522
Mon, Dec 14, 2009, 11:37
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Very interesting. Thanks. I'm sure they see the amazing amount of recoverable gas that is sitting there, most of it under unregulated lands.
I'm working this week on some of the regulatory stuff, and looking at other state taxes for the gas extraction.
PA doesn't tax gas extraction at all--the only state in the top 15 not to do so. Despite some very serious budget problems the last year in PA, Gov Rendell decided that the industry in the state was too new to burden with an extraction tax but almost certainly one will be enacted over the last few years. The amount of gas just under PA is in the hundreds of billions of dollars worth.
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| | | 11 | Bauxman
ID: 5111251410
Mon, Dec 14, 2009, 11:47
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Rendell is wise not to tax it. The secondary tax revenues stemming from the job creation should suffice. Clinton knew what he was talking about when he said, "It's the economy, stupid." Rendell ought to just let them develop those resources and employ a ton of people.
I'm following the Exxon acquisition in particular because that is a long term holding of mine. Natural gas resources are paramount for Exxon because they are making significant efforts to re-allocate their energy portfolio from one dominated by oil to a natural gas one.
This stems a lot from pending climate change legislation and the potential shift from coal to natural gas.
Exxon has the best energy company management on the planet. The Marcellus Shale is in good hands now. I've also read that Exxon is going to have the XTO folks handle a lot of operations as well.
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| | | 12 | tree on the treo
ID: 287212811
Mon, Dec 14, 2009, 12:20
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this xto stuff is interesting. and personal. a very close friend - the guy who was my "big brother" after my parents divorced when I was a kid, is on the board of directors at xto and a serious higher-up in the company.
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| | | 13 | Pancho Villa
ID: 321151218
Mon, Dec 14, 2009, 12:24
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Apparently Wall Street doesn't share Bauxman's enthusiasm over the acquisition....down over 4% today.
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| | | 14 | Bauxman
ID: 5111251410
Mon, Dec 14, 2009, 12:48
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Acquirers go down all the time when there's a deal. It's pretty common.
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| | | 15 | C1-NRB
ID: 2911103011
Mon, Dec 14, 2009, 12:50
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My sister is a cartographer/geographer that maps pipelines for a company in Houston. She's worked on stuff all over the country. I'll ask her if she knows anything about new lines in PA.
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| | | 16 | Pancho Villa
ID: 321151218
Mon, Dec 14, 2009, 12:57
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Exxon Mobil has been a dog all year. Compare its 1 yr performance with BP, plus BP pays twice the dividend.
EXO looks good at today's price though. Too bad I bought a bunch of Chevron last week. Already have BP and Marathon, so I'm capped on energy(at least in my mind).
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| | | 17 | Pancho Villa
ID: 321151218
Mon, Dec 14, 2009, 13:12
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Sorry, it's XOM, not EXO.
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| | | 18 | Bauxman
ID: 5111251410
Mon, Dec 14, 2009, 13:14
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Go out 5 years on Exxon versus BP and tell me how great they are again. 50% return over 5 years versus break even for BP.
http://finance.yahoo.com/q/ta?s=XOM&t=5y&l=on&z=m&q=l&p=&a=&c=BP
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| | | 19 | Perm Dude
ID: 5510572522
Mon, Dec 14, 2009, 13:22
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It is tough to go energy right now--risky as all hell, and new energy acquisition (like natural gas in the Shale) has very large up-front costs.
With big payoffs, however, it might be a good time for looking into companies up and down the acquisition stakeholders. PA has 4000 wells a year going in, drilling even into the winter. Surely these well companies are a goldmine for the short term, for example.
Luckily I'm not handling the "Economic Impact" section of the report, since it can be very complicated!
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| | | 20 | Pancho Villa
ID: 321151218
Mon, Dec 14, 2009, 13:28
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That's why I qualified by saying 1 year performance.
XMO BP
And again, there's BP's 6% dividend compared to XOM's 2.3%
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| | | 21 | Bauxman
ID: 5111251410
Mon, Dec 14, 2009, 13:30
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If you're buying a stock hoping they will get acquired you are throwing darts at a dartboard. It's happened to me a couple times but only because I got lucky. The most recent was Burlington Northern with Buffett.
If you pick the wrong company you will get a residual, sector-based bounce but that's it. I'm sure there's an ETF that tracks the nat gas companies so that will include the one being bought out.
It is tough to go energy right now--risky as all hell
I don't agree. In a couple years we might look back at $4 gas as the good old days. Weak dollar policies by the president, fed, and treasury coupled with massive federal debts will weaken the dollar and bring about inflation. Then again if the economy never recovers you won't have to worry about it because the demand won't exist to justify the tick up in price.
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| | | 22 | Bauxman
ID: 5111251410
Mon, Dec 14, 2009, 13:37
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So what about the dividend?
Take a look at their yahoo page. EPS is 2.83. The dividend is 3.36. How are they gonna pay it over the long term?
http://finance.yahoo.com/q?s=BP
During the first part of the crisis, BP went from about 80 to about 35.
XOM went from 90 to the low 60s. It has held its value much better and now has the XTO acquisition to bolster future EPS.
Why do you own so many energy stocks? Do you have 50 stocks in your portfolio? I would worry about your diversification. For me, I have 10 companies. That's all I can actively managed effectively.
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| | | 23 | Perm Dude
ID: 5510572522
Mon, Dec 14, 2009, 13:45
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For energy companies there are few (if any) new revenue sources, and the ones they have are either expensive or risky. Shale natural gas seems like a decent bet, however, provided that the up-front costs of drilling and delivery are handled. In fact, for the 20-30 year life of Shale gas extraction, this looks like it has the makings of a boom.
In fact, if the weaker dollar continues then natural gas extraction becomes even more attractive.
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| | | 24 | Bauxman
ID: 5111251410
Mon, Dec 14, 2009, 13:52
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I wholeheartedly agree that your area is going to experience a massive boom. Hopefully akin to the California Gold Rush. It's very encouraging to see Rendell take the hands off approach on taxing those activities. Very pro-growth and he should be complemented for that. He should run for President if he's low tax like that.
But I don't agree on the new revenue sources for the energy companies. There are acquisitions like we saw today and then when the alternative energy companies are profitable, the Exxons will be sitting on a pile of cash and treasury stock to scoop up a solar or wind company if that's the road we go.
In fact, if the weaker dollar continues then natural gas extraction becomes even more attractive.
True because it will raise the price of the commodity. Now, do you know yet how much of the shale gas will get exported if any? Then, do they move it on rail or truck?
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| | | 25 | Perm Dude
ID: 5510572522
Mon, Dec 14, 2009, 14:11
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do you know yet how much of the shale gas will get exported if any
That's one of the biggest question marks, as it is all rolled into the distribution question. While I expect much of the gas will be utilized in the Northeast, the Shale itself is huge, stretching roughly down the Appalachians, so the stuff coming out of here might not have to travel far, but the stuff in West Virginia and on down will.
Short term I think we'll see most of it trucked, unfortunately. But it any of the route can be piped that'll be a big money saver.
I can see the day, in about 7-8 years, when the up-front extraction and distribution costs are mostly covered and then the companies will be making money hand-over-fist. At that point some kind of extraction tax might make sense (in fact, the industry groups seem inclined to support extract taxes at that point).
As an FYI I support Rendell's decision not to go with an extraction tax, despite the budget woes of the state (cause, as on the federal level, by a sharp drop in tax revenues). Not only because of the nature of the industry here in PA, but because extraction taxes are really users taxes. 100% of an extraction tax (plus the cost of administering the tax) will get passed to the users, many of them will be residential homeowners. If this was a dedicated tax (such as monitoring cleanups, company bonding, etc) that would be one thing. But merely adding to the General Fund doesn't make sense when it is coming out of the pocket of natural gas users.
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| | | 26 | Bauxman
ID: 5111251410
Mon, Dec 14, 2009, 15:24
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The pipeline has to dead end somewhere like a re-distribution center? Or does it go straight to somebody's house?
It's unfortunate that trucks will be used. Trains are much more efficient and eco-friendly. A pipeline would work great though.
All taxes wind up being "users taxes". I don't imagine a business eating a tax and not factoring it in the pricing or business model somewhere and then it impacts the consumer. Good for Rendell.
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| | | 27 | Boldwin
ID: 26451820
Tue, Dec 15, 2009, 09:12
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PD Looks to me like there are pipelines in your area. 
I am sure that the natural gas is taken from these mainlines, pumped under the ground for storage and distributed to communities as needed. I personally would be amazed if there is such a thing as a natural gas truck distributing natural gas in your area. And no, propane and natural gas are not interchangable. They require different orifices, carborators, valves etc.
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| | | 28 | Boldwin
ID: 26451820
Tue, Dec 15, 2009, 09:23
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| | | 29 | Boldwin
ID: 26451820
Tue, Dec 15, 2009, 09:25
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Underground storage locations mapped above. You are 200 miles from the motherlode of underground natural gas storage for the entire NE, PD.
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| | | 30 | Perm Dude
ID: 5510572522
Tue, Dec 15, 2009, 13:50
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Thanks for these. Good stuff.
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| | | 32 | C1-NRB
ID: 2911103011
Tue, Dec 15, 2009, 17:31
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The correspondance with my sister:
C1-NRB: Are you doing anything in Pennsylvania right now? Could you talk about it if you are?
One of my fantasy baseball guys is researching about the Marcellus Shale up there and said they don't have many pipelines for natural gas in the region; they truck it out. Would that be up your alley?
Sister: We are doing stuff in the Marcellus Shale. We currently have liquids stuff running through that area, and I've done some maps showing a few other Nat Gas gathering systems. I have a coworker who last week did a map with a major Canadian pipeline showing how it crosses and comes over near the Marcellus Shale. I think some of our guys are trying to find a way to tap into the stuff and move it around.
[Name redacted], who I used to work for, has pipe in the area, but it is mostly storage & such... they run the gas up there from here [Texas], and store it until winter, then send it back out. I don't know if they have started gathering some stuff up in the area now or not.
Dunno if this tells you anything or not.
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| | | 33 | Boldwin
ID: 26451820
Wed, Dec 16, 2009, 09:11
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My father worked trouble-shooting jet turbine compressors and assembling controls for the NICOR Troy Grove storage facility, so I wasn't buying that 'natural gas delivery truck' theory.
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| | | 34 | Boldwin
ID: 26451820
Wed, Dec 16, 2009, 09:20
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And those companies running those storage facilities would have contracts to buy natural gas deliveries and as they make new ones they would buy the cheapest contracts they could obtain. Whether they would pocket the low delivery cost profits of a local field or whether the local well owners would...my guess is that the companies controlling those local wells would make out nicely.
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| | | 35 | Perm Dude
ID: 5510572522
Wed, Dec 16, 2009, 11:53
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Thanks again, guys. I've got a small presentation tonight in preparation for a bigger one in March, and while the distribution aspect isn't part of my component (my area is regulatory and taxation issues surrounding the Shale), this is very interesting to me as a Planner (and citizen, for that matter).
We're putting together a general information discussion on this for the county in March as well, and I hope to be talking to a number of industry people on questions that are arising right now, including distribution possibilities. My early discussions on that aspect has more to do with the lack of a distributed network for natural gas to be delivered to the end users, at least in this area.
More information as I get it. I really appreciate the links and help.
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| | | 36 | Boldwin
ID: 26451820
Wed, Dec 16, 2009, 14:06
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There is probably a CUB, [citizens utility board] with members happy and willing to get you up to speed on the issue. Not quite sure what business 'Mr Natural Gas Truck' has in guiding the great state of Pennsylvania's natural gas distribution system... Bill Buckley's "I'd rather trust the first 400 names in the NY City telephone book than some Harvard liberal" keeps ringing in my ears.
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| | | 37 | Boldwin
ID: 26451820
Wed, Dec 16, 2009, 14:23
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"My early discussions on that aspect has more to do with the lack of a distributed network for natural gas to be delivered to the end users, at least in this area." - PD You found an expert in that field willing to validate that assumption?
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| | | 38 | Perm Dude
ID: 5510572522
Wed, Dec 16, 2009, 15:06
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Yes. In fact, my town has been trying to get a distributative natgas pipeline for users for some years now. And at our Strategic Planning Committee meeting tonight (of which I'm a member) I'm hoping for a little update from our Borough Council President of where we stand on that.
With Sanofi Pasteur down the road one way (the makers of flu vaccines) and a huge Johnson & Johnson distribution warehouse the other way we're hoping to tap in, literally, to a pipeline through town.
Most folks here heat with either oil or wood, and just behind them are propane users. Having the option for natgas would be a real benefit for homeowners, particularly those using oil or (*shudder*) electric heat.
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| | | 39 | Boldwin
ID: 26451820
Wed, Dec 16, 2009, 15:11
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I would think the nearest natural gas company is as interested in expanding in your direction as you are in seeing it happen. Call the large utility companies in the state until you find the one in the best position to get that done.
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| | | 40 | Seattle Zen
ID: 1410391215
Wed, Dec 16, 2009, 16:11
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(*shudder*) electric heat.
It's funny you mention that because I remember that very sentiment while I lived in Maryland. Thing is, out here in western WA, many, if not most, homes are heated with electricity. It might not get as cold here as it does in the Mid-Atlantic, but we certainly use our heaters longer, often until June.
I then recently heard that electricity rates are quite different across the country. Gasoline prices are fairly steady throughout the nation, but we pay less than $.06/kilowatt hour here and I believe that the rates out East are nearly three times that. Our rates are low thanks to the Bonneville Dam on the Columbia, as well as the Grand Coulee and others. Could you imagine $3/gallon gas in one part of the country and $9/gallon elsewhere?
The difference in rates makes wind power much more attractive economically out East than it does here out West. I don't know much about electricity and its grid, and I think that's because no one really talks about it much.
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| | | 41 | Tree
ID: 248472317
Wed, Dec 16, 2009, 16:28
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from what i understand, Texas ranks among the highest in the nation in what we pay for electricity.
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| | | 42 | Perm Dude
ID: 5510572522
Wed, Dec 16, 2009, 16:42
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Here in PA the rates are going to be deregulated starting January 1st. There is a lot of uncertainty about rates come a few weeks.
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| | | 43 | Seattle Zen
ID: 1410391215
Wed, Dec 16, 2009, 17:10
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How about we do an informal poll:
Look at your electric bill and post what your rate is in this thread (and where you live).
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| | | 44 | C1-NRB
ID: 2911103011
Wed, Dec 16, 2009, 17:20
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from what i understand, Texas ranks among the highest in the nation in what we pay for electricity.
Which is crazy because we're "off the grid."
US Electric Grid
Texas sells as much energy to the East and West grids as it produces. (citation needed)
Two sources of this over-abundance of electricity are The Comanche Peak Nuclear Plant outside of Glen Rose (Southwest of Fort Worth) and the world's largest land-based wind farm in Sweetwater (as featured on the Weather Channel).
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| | | 45 | Pancho Villa
ID: 29118157
Wed, Dec 16, 2009, 17:21
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Thing is, out here in western WA, many, if not most, homes are heated with electricity.
Never had anything but natural gas for heat and hot water during my 24 years in Utah. I wish my stove was gas, but the conversion was kind of a hassle.
In the summer, my natgas bill is less than 10 bucks. The most I've ever paid in winter is about $200.
My city utilities bill(includes electric, water, garbage and sewer) ranges from $250 in summer(air conditioning) to $125 spring and fall when it's light later.
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| | | 46 | Pancho Villa
ID: 29118157
Wed, Dec 16, 2009, 17:25
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addendum to #45
My house is roughly 2800 sq ft, and 4 people live here - me, my 18 yr old nephew, my almost 15 yr old daughter, and my 11 yr old son.
Obviously house size, quality of insulation(mine sucks) and number of inhabitants is a big part of the equation.
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| | | 47 | Seattle Zen
ID: 1410391215
Wed, Dec 16, 2009, 17:31
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Hey, Pancho, if posts 45 & 46 were in response to my 43, I am interested in what your electricity rate per kilowatt hour is in lovely Utah.
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| | | 48 | biliruben
ID: 16105237
Wed, Dec 16, 2009, 23:04
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Electric here is 0.0376 for the first 20 KWH and 0.0793 after that. Slightly higher for the winter.
Blame Ben for the complexity. F'in economists.
The previous owners dragged natural gas down from the street, and we have a nice boiler and radiant heat.
Hope to get a duel fuel stove-gas for the range, electric for the oven. Priorities turned elsewhere when our washer died. Can't survive without a washer with a toddler.
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| | | 49 | C1-NRB
ID: 5115723
Wed, Dec 16, 2009, 23:30
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I can't find a flat rate on our past electric bills, but they seem to average between $0.144 and $0.149 per kwh. There's probably cheaper rates out there, though.
Since Texas de-regulated about 15 years ago prices have gone up. (And they said competition would lower rates. Ha!) I know people that shop for a different electricity provider every 18 months, but I'm too lazy to put that much effort into saving what would amount to about $50.00/ year by my guestimation.
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| | | 50 | Bauxman
ID: 2110171217
Thu, Dec 17, 2009, 18:23
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PD: What are some of the nat gas companies you are working with over there?
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| | | 52 | biliruben
ID: 16105237
Thu, Dec 17, 2009, 18:29
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Seattle Greenhouse Gas inventory.
Seattle electrical use has declined remarkably, to the point where I'm having trouble believing the decline is real.
Meanwhile oil (and probably to some extent, electricity) has been replaced by natural gas and a pretty fair clip.
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| | | 54 | Bauxman
ID: 2110171217
Thu, Dec 17, 2009, 18:49
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The forum index says you posted PD but I'm not seeing that post.
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| | | 55 | Perm Dude
ID: 5510572522
Thu, Dec 17, 2009, 19:11
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UGI, mostly. But much of what I'm working on these days is working with the drillers, most of whom are from Texas.
In fact, over the last year or so I've dealt with at least a half-dozen guys on crews who have literally never been above the Mason-Dixon line. It is a little freaky to them to be drilling in the Poconos and elsewhere in PA.
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| | | 56 | Perm Dude
ID: 5510572522
Thu, Dec 17, 2009, 19:11
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weird--just reposted it.
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| | | 57 | biliruben
ID: 16105237
Thu, Dec 17, 2009, 19:13
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I prolly zapped it. I self edited the same time you posted. Sorry.
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| | | 58 | Perm Dude
ID: 5510572522
Thu, Dec 17, 2009, 21:29
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The lowest rate I've seen is $0.0899/kWh. I don't know if this covers the fees allowed under the current electrical tariffs ("distribution charge," "generation charge," "transmission charge" etc).
My last bill had an effective rate of about $0.08593/kWh.
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| | | 59 | Boldwin
ID: 101121213
Mon, Dec 21, 2009, 09:14
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The Spaceghost angle on natural gas.
Always nice to get a fresh perspective.
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| | | 60 | Pancho Villa
ID: 29118157
Thu, Jan 28, 2010, 21:39
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More inspectors, safer wells in Pa
A rare instance of civility between industry and environmentalists.
An industry group, the Marcellus Shale Coalition, said in a statement that it supports the state's moves, as did several environmental groups that say the drilling could put the environment and public health at risk without more protection.
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| | | 61 | Perm Dude
ID: 5510572522
Thu, Jan 28, 2010, 22:28
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Thanks for that. There's been a lot of concern here that there aren't enough inspectors to keep up with the drilling (DEP is responsible for inspections of all wells, including Shale wells).
On another front, the state might be implementing a severance tax on the gas (booo!). My state rep tells me that of the many plans out there right now regarding taxation of the gas, the severance tax will probably get the most support, mostly because other states around us (including states from which we import gas) already have the tax. The idea is that consumers won't see a rise in the cost, but that the tax will state flowing into Harrisburg rather than other states.
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| | | 62 | Nuclear Gophers
ID: 7115138
Sun, Mar 28, 2010, 10:26
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I am in southwestern part of Pa. 30 miles north of Pittsburgh. Rex Energy is going around my township (Lancaster) and offering $1500 per acre. I have 6.5 acres. My attorney also lives in the township and he has read the contract and says everything is OK with it.(He did sign the contract). We will probably meet with the representative next week. I have read the contract and I have a Couple of questions for him. From what I have read there are royalties involved and can get free gas up to 200,000 cubic feet. The way I understand it they pick one property and drill around to other properties. Any advise or any knowledge on these contracts would be appreciated.
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| | | 63 | Perm Dude
ID: 5510572522
Sun, Mar 28, 2010, 11:07
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The Pittsburgh League of Women Voters just had a public forum on Shale. I *might* have some stuff from them, but you might be able to get some good advice from them directly. They can't offer contract advice, but there is a lot of background information which might be of some use.
There is currently a court case pending before the PA Supreme Court regarding the payment of royalties that your attorney should be aware of (if not, get another attorney for this contract!). The gas companies want to charge their costs against royalties and are hoping that the Court will allow them to double-dip on the costs. Your contract should ensure that royalties are paid on the gas extraction without any fees, deductions, or costs. The law in PA allows for a minimum 12.5% royalty and you should (at the very least) get that amount.
Because of the way they drill, you might find it best to enter into a partnership with your neighbors to share gas royalties. As far as I know there is little case law about the extraction of gas below a neighbor's property from a well on your own, but it just seems prudent to form a co-op to sidestep any potential problems down the line.
Your contract should also have clean-up/restoration clauses, should have performance bonds, and should be subject to outside agency approval in areas under their purview.
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| | | 64 | Nuclear Gophers
ID: 7115138
Sun, Mar 28, 2010, 11:54
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Clean up and restoration clause is in there. I will investigate the coop, thats a good point.I will also investigate the royalty aspect. There is a section on royalties, but it is written in lawyers terms that I will contact my lawyer on it. Something like the health bill. lolololol
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| | | 65 | Nuclear Gophers
ID: 7115138
Sat, Apr 10, 2010, 08:17
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Update:
The representative for Rex Energy came over last Monday night. We signed the lease. Instead of $1500 an acre he gave us $2000 an acre. I have no idea why, only to think that they are doing really well in the wells that they are drilling at near here (2 miles away). My father in-law got the $1500. Go figure. Instead of a coop, they will put my land in a 500 acre lot unit. He directed me to a Royalty calculator on the internet. He gave me figures from the wells being drilled nearby and my acreage and my royalties will be + or - $5,600 per year. If you have any questions please ask. We are happy with what we are getting. I talked to my neighbor, and he isnt going to sign. Hes afraid it may ruin his well. The way I figure is if they drill down 1 mile and my well is only 65 feet down I just cant see anything happening. Anyway if something does happen to my well they will fix it according to the lease I signed. See what happens.
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| | | 66 | Perm Dude in Denver
ID: 1838916
Sat, Apr 10, 2010, 08:44
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Thanks for the update. If there are no water problems it can be a pretty sweet deal for the landowners. The truck in lots and lots and lots of water for the process--it should be interesting.
If possible, try to post some pictures of them working at it. I'd like to see what it actually looks like.
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| | | 67 | Nuclear Gophers
ID: 7115138
Sat, Apr 10, 2010, 09:04
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Ill try. Maybe today I will go to the site that is close and take some. I will take some from 2 miles away and up close.
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| | | 68 | Nuclear Gophers
ID: 7115138
Mon, Jul 12, 2010, 20:08
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Update-We got our check over Memorial day weekend. Once they start drilling on my 500 acreparcel I will take pictures. By the way PD I was up in your neck of the woods this past weekend, little town called Effort. Right off 115. My wifes brother lives there. Beautiful country. Ill bet the fall is beautiful with the color on the trees.
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| | | 69 | Perm Dude
ID: 5510572522
Mon, Jul 12, 2010, 21:03
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Yeah--it is a beautiful part of the state. Next time you are up let me know.
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| | | 70 | Boldwin
ID: 9631220
Mon, Jul 12, 2010, 21:26
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Petrochemical gopher! Drill baby drill!
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| | | 71 | astade
ID: 20521919
Sat, Nov 06, 2010, 23:05
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another NY Times article about Marcellus Shale. A nice view of what happened in the South (pros and cons) and what's going on in Pennsylvania.
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| | | 72 | astade
ID: 78462922
Mon, Nov 15, 2010, 00:59
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I may be one of the few that cares... but here is video on 60 Minutes: link
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| | | 73 | Perm Dude
ID: 5510572522
Mon, Nov 15, 2010, 01:11
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A local (Wilkes-Barre) TV station just did a short report on that. They showed they guy with explosive water.
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| | | 74 | Perm Dude
ID: 5510572522
Sat, May 14, 2011, 11:18
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NG: How's the drilling going for you? I just got an invite from the Commonwealth to attend some planning sessions for municipal planners about Shale up in your area. Probably won't go (a bit too far for me) but they seem to be having them in places the drilling is more likely.
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| | | 75 | Nuclear Gophers
ID: 494111411
Sat, May 14, 2011, 12:11
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Sorry I havent been up to date so here it goes. Our township (Lancaster Township) voted in January to let them start drilling here. I am in the Goehring lot (500 acres) and they are going to start drilling real soon. My natural gas company is Rex energy and they are having a golf outting and free dinner next Saturday at a local golf course. So I am going to play golf and my wife and I are going to eat and find out more info. My son who is graduting in June applied with Rex energy and has not heard anything yet. He is also playing golf so maybe he will get more info also.
Went to the outdoor show in Pittsburgh back in Febrauary and another company had a booth set up and asked them some questions about the royalties. Rex energy said I should be getting around 700 hundred a month and they seemed to think that was really low. We will see. They also said that you wont be seeing any royalty checks till you see pipe lines distributing the gas. Hopefully will get more info next week. If you do come out look me up.
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| | | 76 | Nuclear Gophers
ID: 494111411
Sun, May 15, 2011, 09:45
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A couple of other things: The former Mayor of Pittsburgh Mayor Murphy owns a farm in our township, and is holding out for five thousand an acre. Rumor has it rex energy isnt budging and says they will drill with out him and he will be out of the loop. Also my wife talked to a guy who owns a horse farm above me. He was one of the first to lease his land 5 or 6 years ago and got 10 dollars an acre. But released at 2thousand an acre. A couple of my neigh bors told me a year ago they werent going to lease their land. But all three have in the last month or so. I will keep in touch.
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| | | 77 | Nuclear Gophers
ID: 494111411
Tue, May 17, 2011, 14:49
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One other thing, My son who is a firefighter for Harmony told me Rex Energy is going to buy a brand new fire truck for the fire company. He told me it is going to be state of the art truck.
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| | | 78 | Perm Dude
ID: 5510572522
Tue, May 17, 2011, 14:53
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And it has a special attachment to fight fires coming out of water taps?
:)
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| | | 79 | Boldwin
ID: 9437170
Tue, May 17, 2011, 17:20
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I suggest a new company subdivision for Rex Energy.
eHarmony
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| | | 80 | Frick
ID: 387512315
Wed, Sep 28, 2011, 16:34
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PD,
You might want to be careful lighting a match near your tap water.
WSJ
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| | | 81 | Nuclear Gophers
ID: 2595166
Sun, Oct 16, 2011, 07:05
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Update: My son finally got a job with Rex Energy. He started last Monday and is training to be a Plant operator. He is working 6- 12 hour days until his training is over. then he will be working 4-12 hour days and off 4 days. The pay is really good and he likes it a lot. 5 miles to the plant.
On a personal note can someone please help me to create and insert a link. I have tried several times and have failed. Thanks.
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| | | 82 | Boldwin
ID: 35615181
Sun, Oct 16, 2011, 09:41
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Email it to me and I will put it in html. Describing how to do it is hard since posting the actual html doesn't display properly, it tries to create a link instead of show you naked html. I used to know how to display naked html but it's easier if you just email it.
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| | | 83 | Frick
ID: 387512315
Mon, Oct 17, 2011, 14:17
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Congrats on your son's job.
If you want to insert a link here, click on the "Click here to create and insert a link" button below the reply box. Copy and paste (or type) the website URL in the first pop-up box. The 2nd box is to put a name on the link.
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