Camps w/o OMG rights - The HuntingPA.com Outdoor Community
 
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post #1 of 7 (permalink) Old 10-28-2014, 10:31 PM Thread Starter
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Camps w/o OMG rights

Was wondering if anyone owns a camp without OMG rights and if so what are the potential issues you face and have you run into any troubles?

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post #2 of 7 (permalink) Old 10-29-2014, 02:27 AM
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Re: Camps w/o OMG rights

that is a great question. I have heard some stories but sure would like to see others experiences.

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post #3 of 7 (permalink) Old 10-29-2014, 10:56 AM
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Re: Camps w/o OMG rights

We own property in Bradford with a gas well next door. We bought the property without OMG and took the risk. We lucked out, the well was not there or seismic tested until after we bought it. The risk is that seismic testing tells them where the best place to put the well. Don't matter if there is a flat 5 acre spot 100 yards away. I have seen gas companies literally carve out the side of a mountain to get a flat 5 acre pad. The other risk is that a pipeline can go across the property. At least with that you have a say in it. If your property is in line with the proposed route then you can negotiate fees for land disturbance,trees cut and what you want them to replant (think food plots). You do have surface rights. It would help tremendously if you could contact the gas company involved and ask to see the plans for the wells in the area and if your property is involved. Sellers may try to minimize all this to sell but press the issue with the realtor.If you have lots of wetlands onyour property then you have some protection as they need to stay a certain distance from that. Same with houses and water wells. Do your homework thoroughly but it really is a crapshoot.

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post #4 of 7 (permalink) Old 10-29-2014, 03:30 PM
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Re: Camps w/o OMG rights

The lease spells out what protections the OGM owner has and how the land is to be handled. That would be my starting point. I would also take into consideration the specific property characteristics, along with those of surrounding parcels. What is the status of the current leases and development activity? If the infrastructure is already in place then the risk of new pads, compressor stations, holding ponds, pipelines may be minimized. How much is the price of the land going to be considering you won't own the OGM and have control over the surface. Again, what does the current lease say.
I've agreed with people who didn't seek extensive addendums because they had very limited risk of surface development that would impact the reason they own their land.
Personally, I would certainly entertain buying a parcel without OGM rights. Just like any other purchase, it's a value question with recognition that I can't predict the future.

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post #5 of 7 (permalink) Old 10-29-2014, 10:26 PM
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Re: Camps w/o OMG rights

For a decent deal, the lack of OMG isn't going to sway me from buying a piece of property. You still have rights as the surface owner although the mineral estate has paramount rights.
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post #6 of 7 (permalink) Old 10-30-2014, 01:33 PM
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Re: Camps w/o OMG rights

I agree with this. I invest in OGM professionally and don't own the OGM under my camp. I couldn't be less concerned about it, but I only have 3 acres there.

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post #7 of 7 (permalink) Old 10-30-2014, 03:29 PM
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Re: Camps w/o OMG rights

We own a camp and 500 acres in McKean County and do not have OMG rights. The OMG owners contracted a local company and came in and drilled 3 shallow (2500') wells. The pressure wasn't high enough to make the wells worthwhile so they were capped. They still come in to check the wells periodically. A year later, the OMG owners contracted another company to look into possibly drilling a deep well. They did seismic testing, people all over the property, and a helicopter flying tree top level overhead during the first week of spring gobbler dropping geophone cables. Fortunately, they didn't find anything worthwhile so no drilling was done. When they drilled the 3 shallow wells, there was worker and truck activity almost around the clock until they were done. The only compensation we received was for timber damage. The roads they built needed to accomodate 50' lowboy tractor trailers. I will say that both companies were extremelly professional with their work and their dealings with us. One up side was, our camp is very remote and the original road to camp was 4 WD only. They rebuilt the camp road with high quality local sandstone to the point that we can now safely drive a pleasure car back to camp and based on our usage, the road should last our lifetime. We bought our 500 acres in 1975 for $88 per acre because we didn't have OMG. The land was cheap but we have no control over what goes on under the surface. Hope this helps.

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