Archives for May 2010

kalkasga Gas continued

Since my last note of May 11, more information has arisen regarding the activities of many large and smaller gas exploration companies thatare seeking leases in Kalkaska, Crawford, Charlevoix and Missaukee counties both before and after the May 4 Lease Auction. Landownwers are first offered leases with an up front “bonus” of pehaps $100, which if refused rapidly increases to several hundred dollars. Also information regarding the character of the play is appearing at various locations on the internet suggesting that the prospect, if successful could dramatically impact the financial character of the area.

I was asked to participate in a radio broadcast on Interlochen Public Radio – Points North – to discuss the play. It can be found at the Interlochen Website.

Oil and Gas in Kalkaska

Last week the State held an auction of its mineral interests in several mid Michigan counties: Kalkaska, Crawford and Otsego to name a few.  At the auction, the average lease bonus received by the State, according to the Record Eagle, exceeded $1,000 per acre, apparently in reaction to a successful deep well drilled in Missaukee County   In the meantime, several  oil and gas developers have been approaching private landowners seeking to lease their acreage at up front prices well below the average price paid to the State.  If a mineral owner wants to  rationally determine whether to accept any specific offer, the owner needs to undertake an analysis of various complex options that are available but not necessarily well known.  We may be able to help.