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Negotations Heating Up

Cold Outside But Heating Up In Negotiations
Not all is dead in NY this winter!

It has been a tough winter in the Northeast. Record colds and heavy snows can easily bring our expenses up and drag our spirits down. Despite the cold weather, we are seeing things heating up in our negotiations. We are doing all can to bring a deal to you but we need your help to pressure Albany to remove the obstacles to drilling in NY. Read on to see how we can succeed together for the good of our communities and our state.

On behalf of our committee, Brian Conover

  • THINGS ARE HEATING UP IN THE NEGOTIATING ROOM.

Over the past few months we have been talking with nearly 10 different gas companies. Some of them are just sniffing around NY, a few have good interest in our coalition

however want to get better vibes from our state government about drilling, and three companies have more current, serious interest in regions of our coalition.

The latter three companies have signed confidentiality agreements with our legal counsel and have received our maps and lease. After they received the maps and lease, these companies consult their geologists to determine production potential of our coalition ranges and their attorneys to read through the lease language and suggest any adjustments. We want you to know that our efforts with the industry are moving in the right direction. We are encouraged at the potential for our coalition, however, be aware that many variables yet exist in the development of our negotiations. One big variable is the climate of our state politics which is currently not friendly toward natural gas production. Other variables include the need for infrastructure, lease language and the financial terms of the deal.

The pace of the negotiations has yet to be known. Depending on the interest and financial stability of each company, this may move more quickly or it could take months. It is possible that some bad news about drilling in NY could even stall negotiations entirely until the State removes its drilling obstacles. Please understand that our committee is committed to transparency and that we’ll keep you informed as we move through critical stages in this process. When a positive offer is presented, know that we’ll quickly bring it to you and your fellow landowners for your acceptance.

  • WITH GROWING NEGOTIATIONS, DON’T SIGN WITH LANDMEN OR COALITION BROKERS.

Since we are getting closer, resist the temptation to sign with landmen and broker groups. Landmen won’t give you a landowner friendly lease nor will they be able to match the financial terms you can get with a coalition. Also, there is a broker coalition forming that, if you sign with them, will become your exclusive broker for negotiations. If our coalition secures an offer and you then want to take it, realize that you are obligated to pay them their full percentage on the signing bonus and royalties! Our attorneys, Scott Kurkoski and Peter Hosey, have the best industry connections and charge a mere $20 an acre only payable if you take a deal – that’s the most reasonable rate around.

  • IMPORTANT MEETINGS THAT WE NEED YOU TO ATTEND!

 

February 16, 2011; 7PM – The Straight Truth on Drilling; Unatego High School; sponsored by the Unatego Coalition and highlighting the Joint Landowner’s Coalition. Otsego County is being hit hard by anti-gas political activists. All of our coalition, especially Otsego County, is encouraged to attend this very important meeting.

Feb. 20, 2011; 2-4 PM - "Ingraffea vs Siegel, SUNY Cortland Brown Auditorium, "Debating the Pros and Cons of Gas Drilling: Professor Anthony R. Ingraffea (Cornell University) and Professor Donald Siegel (Syracuse University). This is a great debate with heavy hitters on both sides. A must see for all pro-gas.

February 24, 2011; 7PM - "Economic Impacts on Communities" with Nicole Dillingham & Jannette Barth
United church of Christ, 11 W. Main, Norwich; please do not park in church lot. Mrs. Barth claims an independent perspective but is funded by and speaks on behalf of anti-gas political activists. She asserts that the economic impact of drilling is very small and short-lived, defying all state and independent studies. We need to pack this event to put an end to the most defense-less position one could take on drilling.

  • CONNECT WITH CUOMO ON NATURAL GAS – KEEP THE PRESSURE ON!

If every one of our coalition members sends two emails each week to Governor Andrew Cuomo with positive statements about natural gas (lower green-house gas emissions, needed revenue for the state and residents, energy independence from foreign countries, ending our military presence overseas, etc.) we would have a beneficial influence on his upcoming decisions. Go to his website at http://www.governor.ny.gov and click on his “contact” link near the top right of the page or call his staff at (518) 474-8390.

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Statistics

There are 194,500 acres represented in the Coalition as of 8/18/2010. The latest gas offers in New York State are $3000/acre with 20% royalties.

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