Hi Robert. I'm just goint to repost some of what I posted on the main board:
All we landowners can do is speculate. It would seem to me that if you follow what BP originally said and did, he is has been activated legally here to expedite work on lease releases. But you have to look at all of the changes that have occurred here and worldwide. A new cracker plant just over the border in PA. Two new gas fired electric plants in Lordstown near the best well in Trumbull. Talking with a friend, we noticed a lot of building going on, in and near the Eastwood Mall, the type we haven't seen in a while. From what I have read, BP went to China to develop shale, and it didn't work out. Maybe we look better now. Nothing has changed much in the last couple years as far Utica development due to Saudi Arabia, but technology has advanced greatly. I for one am not going to get my hopes up, but will watch and see. Better to be pleasantly surprised than disappointed. We might be done with this wave of activity, the next couple months will tell, but the Utica formation is still sitting underneath us. Can't believe it's coming up 5 yrs.
I agree. What is your guess as to what might happen in the next few months. There have been two lease releases recorded in the last year. One in Fowler (April of last year) and one in Kinsman, first of this year. There might be some other reason or legal situation for those releases. Daniel Falligant's signature was on both.
I think at some point the northern Utica will be developed but unsure when that will be. I think gas and oil prices still need to increase and stabilize before we see much going on here. I also follow SE Ohio and drilling has really slowed in the wet gas parts of the play. Infrastructure is being built in the SE part of Ohio and that should help them.
Have heard that around Lordstown the problem is paraffin plugging the wells as it solidifies, thus blocking the flow to the well bore. Have you heard anything about this?
Once again, I agree. I remember at the ALOV meeting at the Covelli Center a lady spoke about paraffin being a by product in our area. Paraffin and water don't mix well. That's why we watch for advances in other methods of fracking. That is also one of the reasons the industry is constantly working on different methods. A new technique may, and I think will, open up the gold mine under us. They wouldn't be working on it otherwise. In the meantime, water is the cheapest method, and works well in some geologies, just maybe not ours. I think the Southern wells are deeper. At this time that may keep those wells flowing easier and more productive with standard water fracking. The easier, lower apples to pick. Then ladders were invented, and you could pick them all.
Unfortunately makes sense. Sounds like Hilcorp isn't renewing leases in Mercer county. Oh well, wait and see. We just have to remember that it's all still there if things heat up again, and let each other know about any activity.
Sorry I don't Winemaker. If you know anyone with a Linkedin account the info may be there. At the meeting that I went to both Latell and Wegner mentioned later April for the releases to be possibly recorded. They said not to hurry and spend your own money for a release, as BP said to them that they were going to follow through with the paperwork to let the leases expire. I just plan on waiting and seeing what happens, then if necessary, looking into having it done. I've been checking the recorder's web site occasionally, and I will post if I see anything. Rather be waiting for something positive than this.
I'm just trying to figure out what kind of game they are playing. The leases expired on 4/1, BP knows that, why set a time frame for release at the end of April? If they were looking out for us, they could have timed the releases with the expiration date of the leases. I tend to not trust a lot, and I always am looking for the hook. Releasing these leases is not rocket science, why are they playing for time and drawing this out?
Hi winemaker. I agree with you about trusting any O&G company. I am definitely not a lawyer, but they seem to be following the ALOV lease. Here is the paragraph about lease termination from my contract. ---
"Upon termination of this Lease or any portion thereof, or upon expiration of this Lease, Lessee shall provide Lessor documentation in recordable form of such termination or expiration within thirty (30) days after the date of termination or expiration. Should Lessee fail to provide such documentation, Lessee hereby grants to Lessor the right and authority, after thirty (30) days prior written notice delivered to Lessee by certified mail at the address shown on this lease, or such other address as has been subsequently provided by Lessee to Lessor, to file an affidavit on record reflecting such expiration or termination, which filing shall be binding upon Lessee."
Seems like they have till the end of the month (April) to send out notification. It also looks like they are not legally bound to do even that. From a public relations standpoint, they probably should follow through and make it easy on everyone. It is odd though that ALOV gave them the option to walk away without finalizing everything with no penalty to BP. The way it seems to be worded is, they give us the "right" (and expense) to file papers on our own to terminate the lease if they decide not to act according to their duty. I guess we have to rely on their good will.