Joining a co-op?? What are leases going for?

[Uncle Nicky]

I have a small camp (60 acres) in Allegany County, NY. It looks like fracking is going to pass in NY state soon, and I was approached by one of my neighbors to join an "alliance" of land owners sponsored by CX Energy from Wexford, PA, it looks as if they are a broker who shops around for the best gas lease offers. The pitch I was given is that the bigger the co-op, the more money we can eventually bargain for.

Does anyone have any experience with CX Energy, or a company like them?

My second question is, what type of money can I expect to get if I DO decide to lease? I realize that every area is different, but was just curious what the range might be. In all honesty, I'd rather keep the land for hunting & possibly retire there some day, but if I'm surrounded by wells, trucks, and drilling, I might as well join them if I can't beat them.

Thanks in advance. Uncle Nicky.

[growalot]

What are the rules that NYS has put in for this?....Say everyone around you goes into this co-op and they receive signing bonuses but you don't....fracking is horizontal drilling right? so the gas company could still drill under you having to compensate for the gas removed but never having to give you said upfront money?

[Uncle Nicky]

What are the rules that NYS has put in for this?....Say everyone around you goes into this co-op and they receive signing bonuses but you don't....fracking is horizontal drilling right? so the gas company could still drill under you having to compensate for the gas removed but never having to give you said upfront money?

Growalot- I'm in the research phase right now, that is why I created this post. I'm hoping to get honest answers from somebody who has dealt with gas leases, rather than rely on the hype I'm getting from my neighbor or from what I've read on the internet.

Everything I have read so far says that the drilling can't be performed under my land, unless I am part of the drilling unit (land that is part of the lease), so in theory, they can't drill under my land, unless I sign a lease. But I'm not 100% sure I believe this yet.

[G-Man]

You better off joining than not.. nys says you will be compansated for gas under your property but it is at a such a small amount that you will be robbed blind. smaller land owners do'nt sign up because they need a unit of 300 acres per well so if they have 260 and need yours they drill and pay u at nys compensation rate, if you get on a lease, you can get up to 20% royalties if they drill, i believe "i'd have to look it up in my reference material nys is 1%or less.." You can have the gas underyou taken and have no say in the matter but are paid by law under nys. if a pin was the well the are paid out is a circle consisting off 300 acres. if your land in partially in it you get paid. As for right to look for gas, allegany wellsville area is higher than my area in cattaragus we are at approximatly 25$ an acre. its if they drill that you want to be in a lease agreement for higher returns. I suggest going to several different co op meetins. saleable timber and firewood timper to be removed for piplines or for well should be addressed in your lease as well as maintance roads. Hope this helps you a little.it was very stressfrul for myself as well but i did end up in a co op.

Edited January 29, 2013 by G-Man

[growalot]

I asked that question because our daughters apt...neighbor..just moved back to PA was one of those that set up leases....She's been house hunting and I recall her mentioning something to that effect....Have you Googled the company yet?

[Uncle Nicky]

I asked that question because our daughters apt...neighbor..just moved back to PA was one of those that set up leases....She's been house hunting and I recall her mentioning something to that effect....Have you Googled the company yet?

Yes, I've Googled the company, and I've been doing a lot of speed reading on the topic since last night. I can only find one negative item about this company so far.

And, as G-man mentioned, I may have been partly wrong about them being able to drill under my property without my permission. It looks as if "forced pooling" is legal in NY, but not in PA, where I was finding most of my information.

[boo711]

There is post titled NY public comment starts today I the political forum. I would read that before you decide what to do. Makes you really think. I have some friends in pa whose relatives have drilling rigs on there land. From what I hear they are not even close to making the money, hey thought they would. I don't know if you you can really trust the gas companies. They just want your land. I also have a brother who works for an environmental company. He has done a lot of research for work and for his masters at suny esf about fracking. I am sure he would be able to give you some info about it. I am not trying to be an anti. I just don't think people understand what happens to there land. That 60 acres you have or any one who signs a lease will be replaced with rigs, trucks, 24 hours noise, etc. I would just really do some research before you sign. Go to pa and talk to some people. You can't miss them. They are the ones with the big rig on there land with an exhaust fire burning out of the stack. & your land will never look the same again

[G-Man]

If they drill or put pipline on your property. yes your landscape will change. i even have in my lease what the roadways and piplines are to be planted with. you can still be in a co op and tailor the lease to fit your own needs. and face it nys is not a quick mover in anything (except anti gun laws), i've had my lease 3 years so far still no drilling andi don't see it happening here soon either, places with existing piplines,infrastructure will be first to drill with it expanding from there,if and when ny even gives the go ahead... Heck i'm still waiting for a new peace bridge buffalo to canada..only been 15 years +...

[boo711]

Well maybe with all the taxes we will get from our new citizens that were illegals yesterday that can pay for the new bridge. I crossed it in July and it was looking a little worn. Don't remember it being like that 20 yrs ago when I was at Niagara u. Good luck with what ever you choose. Again I wasn't trying to sound negative or like an anti. I just think in something like this only 2 people will make out. The gas co and the state. Not the landowner. And that is a shame!!

[Meat First]

Hey Uncle Nikky do yourself a favor and before you join or sign anything get yourself a lawyer. Not just any lawyer but one that specializes in gas/oil leases. The guy I used is out of Elmira I believe and has represented the landowners in some of the larger deals on the southern tier. His name is Richard Gerard 212-987-9730 or 607-732-3793. The nyc number might be his cell so try the 607 thats prob his office. I think he went to school down here at Columbia and from my experience he is pretty sharp. Good luck.

[Uncle Nicky]

Thanks Meat First, I agree, before I sign anything, I'm going to talk to a lawyer. Before I sign a lease (if I do decide to lease), I plan to have one go through it with a fine tooth comb.

[SplitG2]

$25 an acre is way too cheap. Down in deposit area they got $2200 an acre four years a go. The coalition I'm in is looking at least3k an acre.