Letters

Letters 08-31-2015

Inalienable Rights This is a response to the “No More State Theatre” in your August 24th edition. I think I will not be the only response to this pathetic and narrow-minded letter that seems rather out of place in the northern Michigan that I know. To think we will not be getting your 25 cents for the movie you refused to see, but more importantly we will be without your “two cents” on your thoughts of a marriage at the State Theatre...

Enthusiastically Democratic Since I was one of the approximately 160 people present at when Senator Debbie Stabenow spoke on August 14 in Charlevoix, I was surprised to read in a letter to Northern Express that there was a “rather muted” response to Debbie’s announcement that she has endorsed Hillary Clinton for president...

Not Hurting I surely think the State Theatre will survive not having the homophobic presence of Colleen Smith and her family attend any matinees. I think “Ms.” Smith might also want to make sure that any medical personnel, bank staff, grocery store staff, waiters and/or waitress, etc. are not homosexual before accepting any service or product from them...

Stay Home I did not know whether to laugh or cry when I read the letter of the extremely homophobic, “disgusted” writer. She now refuses to patronize the State Theatre because she evidently feels that its confines have been poisoned by the gay wedding ceremony held there...

Keep Away In response to Colleen Smith of Cadillac who refused to bring her family to the State Theatre because there was a gay wedding there: Keep your 25 cents and your family out of Traverse City...

Celebrating Moore And A Theatre I was 10 years old when I had the privilege to see my first film at the State Theatre. I will never forget that experience. The screen was almost the size of my bedroom I shared with my older sister. The bursting sounds made me believe I was part of the film...

Outdated Thinking This letter is in response to Colleen Smith. She made public her choice to no longer go to the State Theater due to the fact that “some homosexuals” got married there. I’m not outraged by her choice; we don’t need any more hateful, self-righteous bigots in our town. She can keep her 25 cents...

Mackinac Pipeline Must Be Shut Down Crude oil flowing through Enbridge’s 60-yearold pipeline beneath the Mackinac Straits and the largest collection of fresh water on the planet should be a serious concern for every resident of the USA and Canada. Enbridge has a very “accident” prone track record...

Your Rights To Colleen, who wrote about the State Theatre: Let me thank you for sharing your views; I think most of us are well in support of the first amendment, because as you know- it gives everyone the opportunity to express their opinions. I also wanted to thank Northern Express for not shutting down these types of letters right at the source but rather giving the community a platform for education...

No Role Model [Fascinating Person from last week’s issue] Jada quoted: “I want to be a role model for girls who are interested in being in the outdoors.” I enjoy being in the outdoors, but I don’t want to kill animals for trophy...

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Gas pains in Emmet/Charlevoix

Robert Downes - January 17th, 2011
Gas pains in Emmet/Charlevoix 1/17/11
Sometimes, it really does pay to look a gift horse in the mouth...
When oil and gas landmen descended on the Little Traverse area last
summer with promises of easy riches in return for mineral leases and
signing bonuses, many landowners in Emmet, Charlevoix, Antrim and
Cheboygan counties took the bait.
Some even went out and borrowed money to purchase new cars, tractors
and other expensive items, or took out second mortgages on their homes
in anticipation of the cash and royalties they expected to receive
from their leased lands.
Then -- poof -- last fall, many of the signed, notarized contracts
were abruptly canceled, leaving hundreds of landowners holding a bag
of empty promises.
That’s the scenario laid out by David Petty, who characterizes himself
as a “ticked off guy and a tree-hugger” who got involved in the oil
and gas business as a broker a few years back to support his career as
an artist in Charlevoix County.
“Being in this business and seeing what these oil and gas company
people did really ticked me off,” says Petty, who is a bit player in
this unfolding drama, having 12 acres which were initially leased at
$650 per acre.
Petty is helping to organize a meeting at the Emmet County Fairgrounds
this Tuesday, Jan. 18 at 7 p.m. with Gaylord attorneys Susan Hlywa
Topp and Bill Rolinski, who are specialists in oil and gas leases and
environmental law. The meeting will acquaint landowners with their
rights, along with the obligations of the companies that signed
contracts. And of course, what legal actions one can take if a lease
has been voided. Hundreds of landowners are expected to attend.
Last year, Petty says, landowners in the region were promised anywhere
from $300 to $2,000 per acre for the right to drill for natural gas on
their property. Now, he says, some of those people are losing their
homes or have gotten themselves into debt and financial trouble
because they counted on lease money that never arrived.
A ‘gold rush’ for gas mushroomed last March when a huge deposit was
discovered in a 12,000-foot well in Missaukee County. Petty says the
well initially delivered a whopping 2.5 million cubic feet of natural
gas per day.
The Missaukee well is located at the deep end of the Collingwood Shale
formation, a natural gas field which is said to be 40-45 feet thick
and spreading across much of Northern Michigan about 2 miles
underground. It’s expensive to drill that deep, however; yet the
formation is only 5,000-6,000 feet deep in the
Emmet/Charlevoix/Cheboygan area. Thus, the rush by oil and gas landmen
to sign leases in the area last summer.
“It was crawling up here with landmen promising to hand out $1 million
checks,” Petty says.
Typically, the state auctions leases for $10-$30 per acre, Petty says,
but the frenzy over natural gas deposits around Emmet County sent some
offers into the $3,000-$5,000 per acre range. A report by Sheri
McWhirter in the Record-Eagle noted that energy companies spent $178
million at an auction of state land last year, “more than seven times
the state’s previous auction record of $23.6 million set in 1981.”
But then production at the Missaukee well dropped off to 800,000 cubic
feet of gas per day -- about the norm for such an operation, Petty
says. It was around that time that landowners started receiving
letters from the oil and gas companies stating that their leases had
been voided.
In one published report, Petty notes that his own lease was voided
simply because he has a mortgage on his house. “There was no company
name and no phone number on the letter I received, just an address.
I’ve never heard this type of excuse for backing out of a lease.
Ninety percent of people who lease their mineral rights have
mortgages.”
Tuesday’s meeting will be the second gathering of disgruntled
landowners in the four-county area around Emmet, with some considering
the options for a lawsuit.
This is just speculation, but some might reckon that suing an oil and
gas company might not be an easy matter, given the barrels of cash
that go with such an enterprise and the ability to throw lawyers at
such an endeavor for nigh onto eternity.
But that’s an option.
“Oil and gas companies have been ripping people off since the first
well was discovered in Pennsylvania (back in the 1800s),” says Petty.
“Fortunately, the internet and the spread of information about your
rights as a landowner have made people a lot smarter about their
rights; and it’s making the oil and gas companies a lot more honest
than they used to be.”
In the meantime, the next time someone knocks on your door offering
easy money in return for the right to drill for natural gas on your
land, you might want to get that money up front, in cash.

The gas leasing informational meeting with attorneys Susan Hlywa Topp
and Bill Rolinski takes place at the Emmet County Community Center at
the fairgrounds in Petoskey, Tuesday, Jan. 18, 7 p.m.

 
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