No Hot Air Today

Mar 07, 2010
New world,old world. This world, next world
Why aren't we hearing more about shale in Europe? We've always thought that people are operating as far under the radar as they can get, and the behaviour of US companies back home says why:


(c) 2010 F. Bruce Abel

This from No Hot Air

The wide range of lease and royalty rates being offered to landowners has led to some concern, particularly among those who signed for lower rates.

One example is Oglebay and Wheeling parks. Last year, the Wheeling Park Commission got Chesapeake to pay $750 per acre and 14 percent production royalties for drilling at the two parks.Last month, the Marshall County Board of Education signed rights to 177 acres in Sherrard to Chesapeake for $2,800 per acre and 18.75 percent production royalties. Another Marshall County resident, Kerry Foster, has not yet signed with a company because he is holding out for better offers on his 69 acres.
"In 2008, CNX wanted to give me $5 per acre for it," he said of his land. "Now, the highest offer I have gotten is $2,800 (per acre) and 18.75 (percent).
A Weirton resident who owns about 50 acres in Marshall County requested to not be identified. He said a CNX representative initially offered him only $250 per acre for a lease..At first, this guy wanted me to sign for $250. Then, he went straight up to $1,250

God does work in mysterious ways, and although some may look to the future, members of a Hare Krishna community in West Virginia are happy to take the money in their current incarnation:

Members of the New Vrindaban Hare Krishna Community in Marshall County can attest to that, as they are set to gain roughly $10 million in lease payments from AB Resources.

With Ohio-based AB Resources set to pay the community a lease rate of $2,500 per acre for about 4,000 acres - and 18.75 percent production royalties if the company begins pumping natural gas - community member Gabriel Fried said he believes now is the time to sign.

"We could wait two years to see if the price goes to $5,000 per acre. But we wanted to get the production going because the royalties are the real source of revenue," Fried said.

God also takes care of those who take care of themselves. Here in Europe, land and mineral rights are far more complex than in the US to start off with, but producers have an advantage in that no one has heard of shale gas. Who is going to tell them if not regulators or their own governments? They won't learn it from expro companies, and they won't read about it in the papers.

That suits those like the US company we know who is on public record as paying a whole 55 cents an acre and 1% royalty in Poland.

Back to the Hare Krishnas. Next time someone complains about any alleged ecological impact of shale drilling, remember this:

The lease agreement includes $2,500 an acre and 18 3/4 percent of the gas royalties. The money also will be used to improve the community’s organic garden. Terry Sheldon manages the Krishna’s small farm training center.
“Some of these monies will be used to promote apprentice programs and the presence of cows in a farm community means guaranteed fertility in a community and when you have fertile soil you have social security so the money will be used to create housing and infrastructure enhance our cow protection program,” said Sheldon.
Fried said the Krishna’s plan to plant hundreds of nut trees on their property. Future plans even include building a holistic health clinic with the royalties. The Krishna agreement also includes drilling 400-feet below where the community pulls its water from.

In the mid 1980’s, there were more than 600 Hare Krishna members living in the New Vrindaban community. Today, that number is about 200.

International Society for Krishna Consciousness is one of the more obscure and unexpected links NHO has ever had, and boy have we had some left field ones.



Posted at 04:32 PM in Current Affairs, Energy Prices, Shale Gas Permalink
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