The Vestal Steering Committee invites all coalition members to join us for a status update meeting on:
Tuesday, December 1, 2009
7:00 p.m.
Clayton Avenue Elementary School Auditorium
209 Clayton Ave., Vestal
Below are some questions that were turned in at our past meetings:
Q: Is a gas and oil lease transferable if property is sold?
A: Yes
Q: What will layer fees be in relation to a confirmed oil and gas lease?
A: Please review the detailed information on the HH&K tab. This was your agreement when you signed the HH&K Fee Agreement form when joining the coalition.
Q: Will the NYS DEC regulation regarding disclosure of all chemicals used during drilling cause issues with securing a potential gas lease?
A: We do not expect that this requirement will have any significant influence on an energy companies desire to lease and commence drilling in NYS. The companies have already been working with and cooperating with the DEC while they were completing their study.
Q: Is the landowner listed as "additional insured"?
A: Yes, our lease provides that the landowner be listed on the energy company's insurance policy if that property is developed. They will be required to carry $2 million/$4 million based on the lease (see section 12 - "Indemnification/Insurance").
Q: Is it more profitable if we sign with the same gas company as our neighbor?
A: The important point is the value of your contract. Relationship to others is not relevant. The "full value bonus and royalty" of your contract are key factors in addition to environmental contract terms. Assuming we are successful with the current contract both benefits will be provided.
Q: Has the fact that some Vestal Coalition members have already signed with other companies affected the coalition?
A: The Steering Committee feels sorry for those who have signed leases that provide less wealth and environmental protections for years to come. The current membership is stronger in numbers and acres than ever before. In the last six weeks we have added over 175 new members. We have a highly desirable block of Vestal acreage.
Q: Can bonus money be received over two years?
A: Only if the payment schedule calls for split payments over two or more years. Because of our timing, there is a possibility that our 25% deposit would come in 2009 and the remaining balance be received 60-90 days later which may fall in 2010.
Q: How have the terms of our lease change
A: The Vestal lease has been a work in progress since the coalition was formed . Gaining knowledge from other coalitions as we have shared information and reviewing confirmed contracts like the recent Friendsville lease has been a factor in our forward progress. We have updated the language in some areas of the lease based on the new DEC regulations so that there are no duplications in language. We have also taken into consideration the advise of our attorney, Robert Wedlake along with input from our steering committee, and you, our members. Finally, and most recently, we received advice from the President & CEO of the energy company we are working with based on his extensive experience in the industry.
Your steering committee hopes that this feedback and the valuable question and answer exchange during the past two Sundays has addressed your valid concerns.