Just like it isn’t prudent to blindly sign a gas lease with any gas company, PLEASE don’t blindly assume that a landowners coalition is unconditionally the best way to negotiate the terms of your lease. Yes they do have alot of good information but the best advice I can give to anyone would be to hire your own expert legal advice to help your negotiate your lease. Some of the coalitions only listen to what they think reality should be. I’ve seen many deals fall apart because everyone gets too greedy. Its just not the gas companies at fault. Those $25,000/acre sign on bonuses just aren’t the norm and usually only occur under very unique circumstance. Do your own research and hire true experts and maybe who knows you just might have a great lease in place while the coalition members are still waiting for the perfect deal that may never happen.
Be your own thinker
March 4, 2009Landowner Groups
March 3, 2009Here’s a great feed that will keep you up to date on gas leasing in Broome County, NY.
Gas Rush in New York
February 27, 2009The natural gas rush associated with the Marcellus Shale deposits in Upsate New York has been non existent over the winter months while gas drilling in Pennsylvania continues at a very healthy pace. The regulatory environment in New York is so severe that it threatens the short term development of the gas drilling industry while it takes its sweet old time to complete environmental reviews before well permits are issued. This factor coupled with the crash in natural gas prices, an over supply of natural gas, and the severe economic recession has turned New York’s gas rush into a much longer term speculation for the time being. Gas leasing activity has basically stopped with sign on bonuses dropping from $2700.00 +/- last summer to current offers of only arond $500.00 per acre. Caution is advised for short term speculators.
