Coalbed Gas update

[cowman]

Thought some might be interested in this?
On wed. March 8 at 7:30 PM there is an open info meeting at the Trochu Hall, Trochu Alberta, on coalbed methane. Sponsored by the Pine Lake Surface Rights Action Group.
They list three speakers: A Ms. Blanchet from Aztec New Mexico, who will talk about how coalbed methane changed her ranch and how National Geographic magazine has described her area as a "national Sacrifice zone"!
Also a Ms. Lachelt from Colorado, who will discuss what has happened in Colorado and Wyoming with specific references to land fragmentation, hydraulic fraccing and air pollution.
And finally Jessica Ernst from Rosebud Alberta, who will talk about her challenge to a prominent CBM company over noise disturbance and a alleged falsification of noise impact studies, as well as methane migration in her water well.
All of us who are in the area that will be experiencing CBM developement should be aware of the implications? Right now the coalbed companies are telling us the Alberta coalbed is dry...and that is very true....at least the coalbeds they are exploring right now! The really "heavy hitters" are below the present coalbed they are producing at the present time! They have not gone there yet...but they surely do intend too in the future!
A CBM representative told me right now they are playing the good guy so they can get on the land and get established! Once in it is Katie bar the door and they will **** and pillage at will! You need to be informed.

[cakadu]

Thanks for the info cowman. I agree, folks need to be informed on this topic.
As for Katie bar the door, Katie is my border collie pups name, and I don't think she is going to be much of a watch dog, she is far to meek and mild like her owner !!!

[cowman]

Yesterday I got a call from an old boy who lives about four miles away. Now this guy is 91 and knows nothing about oil or gas. Anyway the upshot is the landman came knocking wanting to put in a pipeline. What he offered was literally a joke! Told the old boy that was the going deal around there! Anyway this old boy was sort of in a panic because this jerk told him he had 48 hours to considerate it!
So guess who is going to be there with him in two days when this bugger comes back?
You know landmen who try to intimidate these old guys should be taken out behind the barn and shot! Trying to take advantage of an old man because he doesn't know anything! They aught to be ashamed of themselves.

[cowman]

Cowman, I am a woman farming on my own and I have had similar treatment, except that I do keep abreast of going rates for leases and am not above telling landmen to go plumb to hell if they try and inimidate me. Anyone trying to bully and badger an elderly person should be stripped of their landman credentials. The company he represents should be contacted immediately and advised of what has happened, and of all else fails the media should be contacted. What a black eye it would give the industry and peer pressure might ensure that the bully got the boot!!

[cowman]

Well this company has a pretty bad reputation, although it looked like they were trying to clean up their act!
I suspect it is just some slicker landman trying to look good in the bosses eye!
This isn't the first time this company has tried to put different prices out there and it hasn't gone over well with a lot of people! Unfortunately you get this "farmer mentality" where they don't want the neighbors to know what they are getting! You would not believe how secretive some people want to be...while trying to find out how much everybody else got? Like they think they are big wheeler dealers who know more than the oil company or something! The landmen eat those types for breakfast!

[bird]

Had the same thing happen to one of my Land Owners.When I challenged the oil company on my land owners behalf they said that they would get back to me. Haven't heard anything for 2 weeks. Guess we won't be getting a new well (LOL)Cowman just wondering what you feel the going rates are?? Yes each area is different but what range can be expected for Loss of Use? Adverse effect? Nuisance? etc. Thanks

[Horse]

I have 2 relatives that are land men and just so hapens that they both are billing out over $1000 a day and yes I supose there are expences but they are like used car salesmen and you cant get any secrets of the trade out of them but I do know the next time a land man sits across the table from me I am going to demand $1000 for my time too.

[cowman]

bird: Not real sure about nuisance or adverse effect as haven't done a drilling site lease for several years. On these pipelines that does not apply as it is land costs, entry fee, and loss of use? Land costs are typically $2500/acre in this area, $500/acre entry(standard in Alberta) and loss of use is generally $300-$350 acre for crop land and $275 for hay and $200 for pasture...payable as 100% first year, 50% second year, 25% third year?
This particular landman offered $2000 acre land cost $500 acre entry, and $200 acre straight for loss of use!

[wilagro]

Thanks for the info cowman. CNRL wants to run a gas line across my farm. Now I have some figures to go by when their rep comes around to negotiate.

Maybe I'll make enough to take a holiday in Red Deer if I'm lucky.

Haven't been there for a coon's age.

[cowman]

wilagro: As it turned out this landman was just a green kid...who said he wasn't familiar with the prices being paid around here! Yea right.
Anyway I showed him what the going rates were(helps to be a member of a surface rights group) and argued that because this old boys land fronted a major highway he should get even more! We sort of came to a deal(he has to take it back to his boss) but settled on $2650/acre land cost, $325 loss of use at 100%, 50%, 25%...all paid up front first year! And of course $500/acre entry fee.
This was a total area of 5.2 acres with about 1.2 acres in pasture the rest crop. He agreed to pay crop price for total 5.2 acres.
We proposed the owner would pick the rocks(grandkids) for the three years at $520 and he thought that was okay.
Also in regards to weed control: owner would phone company rep if there was a problem and they would have ten days to respond and spray. If nothing done in ten days, owner would contact private contractor(guess who?) and company would pay the bill! Owner would get to specify spray to be used.
We again proposed owner would seed the pasture portion at a cost of $120. If seed bed was not up to snuff company would have to bring in black dirt.
Two fences would have to be cut and temporary fence in place at all times with new posts upon completion.
We also asked that upon abandonment caveat be removed within one year and that no other product be used in the pipeline other than NG.
We also proposed before anything was signed the landowner could take the contract to a lawyer of his choice for advice and the company would pay the bill.
And finally, we asked for a personal consideration of $500 for the landowner monitoring the situation and for his time spent doing so!
The landman was a little shaky about most of this but agreed in principle! We'll see what his boss has to say. This company really doesn't have an option on this site, it is literally the only way they can go.

[wilagro]

Thanks again cowman...more valuable info or ammo as the case may be.