anyone read the sec form 10-k? - The HuntingPA.com Outdoor Community
 
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post #1 of 7 (permalink) Old 12-15-2011, 01:10 PM Thread Starter
g17
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anyone read the sec form 10-k?

I, for one really didn't believe the gas industry reps telling me it was all perfectly safe, nothing to worry about when they tried to lease my land. I find it interesting that those statements seem to contradict what is filed with the Securitites Exchange Commission's form 10-k. in other words it would appear the industry, at least in my area of the state (NEPA - Susquehanna County) is telling the landowners a different story than they are telling the investors in the company.

For instance - Chesapeake's 10-k filing states the following:
Inherent in natural gas transmission and natural gas and electric distribution activities are a variety of hazards and operational risks, such as leaks, ruptures, fires, explosions and mechanical problems. If they are severe enough or if they lead to operational interruptions, they could cause substantial financial losses. In addition, these risks could result in the loss of human life, significant damage to property, environmental damage and impairment of our operations. The location of pipeline, storage, transmission and distribution facilities near populated areas, including residential areas, commercial business centers, industrial sites and other public gathering places, could increase the level of damages resulting from these risks. The occurrence of any of these events could adversely affect our results of operations, cash flows and financial condition.

Read more: http://www.faqs.org/sec-filings/1003...#ixzz1gcDBAU6q


Cabot's 10-k filing with the SEC states:
Our
business involves a variety of operating risks, including blowouts, cratering,
explosions and fires, mechanical problems, uncontrolled flows of oil, natural
gas or well fluids, formations with abnormal pressures, pollution and other
environmental risks, and natural disasters.

http://markets.financialcontent.com/...89924301000452


I'm wondering if this is a common practice or if they are being more upfront in other areas. Anybody care to chime in with your experiences?
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post #2 of 7 (permalink) Old 12-15-2011, 02:37 PM
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Re: anyone read the sec form 10-k?

looks to me like they are stating the obvious. kinda like a disclaimer.

lets look at it this way, in a way this sims up what you posted

IF I HAVE A ( BLANK) AND SOMETHING HAPPENS TO IT, IT COULD CAUSE SIGNIFIGANT DAMAGE, POSSIBLE LOSS OF LIFE, POSIBLE ENVIROMENTAL DAMAGE. THIS COULD BE WORSE IF IT HAPPENS IN A METROPOLITON AREA.

now ,lets fill in the blank
1.gas well
2.train
3. plane
4.buss
5. truck fule of fuel/chemicals
6. cargo ship full of oil/chemicals
7. chemical plant
8.

you get my point. theese same risk are inherit to everyday life we live.

i think they stated the obvious, and you are fishing to make more out of it than it really is.

Your never to old to learn something stupid
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post #3 of 7 (permalink) Old 12-15-2011, 03:37 PM Thread Starter
g17
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Re: anyone read the sec form 10-k?

my question was quite simple. just asking if any of that info was divulged during the leasing process or just to the shareholders... In my case I asked are there any danger factors I need to be aware of in this process..was answered with the process is absolutely safe there are no risks, it's a win win.

Thanks for the reply but you really didn't answer the question. anyone else?
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post #4 of 7 (permalink) Old 12-15-2011, 04:47 PM
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Re: anyone read the sec form 10-k?

A lease contract, like any contract is by agreement of both parties. The legality of any contract being the mutual exchange of something of value.

In all things, a contract to sell or buy a house to a gas lease, or an employment contract - buyer beware. The first rule of any transaction.

The signer of any contract for gas drilling or royalties, coal mining, timbering, or other natural resource extraction needs to be informed as to what they are doing. The filing you listed above is standard for investor information. Mattel toys has similar warnings specific to their toys - chocking, cuts, falls, ...

If you feel that you got the short end of the stick in a gas lease deal, the questions to answer are:

Do you have legal representation representing YOU involved?

Did you do due diligence personally to find out what was involved in the operations to include the hazards as well as the potential money?

Did you investigate the track record or the company you wee signing with?

Did you sign with a gas company or a land agent that was packaging the leases for resale?

Did you specify in the contract you sold what you wanted when all was said and done: restoration of the land, the foot print of the gas operation, and many other aspects.

A contract is a give and take thing. What is in black and white when you sign is what you get from then on. Before that signature - everything is on the table.

To very specifically answer your question - yes - the listing of almost anything negative that any company selling securities (stock) may experience in it's operations is listed. That by regulation.

Further, n this hyper media age, any landowner claiming to be surprised by anything where the Marcellus Gas play is concerned has been living on Mars. No way to miss the claims and counter claims for and against drilling even if most casual about listening to the news.

Is your position a short term gain - or a long term loss? Separate the issues.
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post #5 of 7 (permalink) Old 12-15-2011, 05:26 PM Thread Starter
g17
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Re: anyone read the sec form 10-k?

sorry can't answer your questions as I chose to not sign repeatedly. This was a few years back before all the negative stories hit main stream media outlets. I do know about disclosure clauses in real estate contracts - basically known issues have to be divulged. Seems not so with gas leases.

My question to you is do you have a lease? If so, Did you ask about potential safety issues and what was the reply?
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post #6 of 7 (permalink) Old 12-15-2011, 06:09 PM
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Re: anyone read the sec form 10-k?

personaly i turned down several offers when they first came around. i took the time to read about gas drilling and fracing on the internet. while there was virtualy no history on the marcelas, they was endless resources pertaining to simaler shale plays.
i also attended several public meetings, aimed at informing people.
when i finaly signed , it was well over a year after it all started around here.

i took the time to educate myself as much as i could before entering into a contract that could/would effect my life/land/home/family for years to come.

it was very obvious from the start that the people coming around trying to lease land, landmen, had very limited actual knowalge of the business itself.

Your never to old to learn something stupid
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post #7 of 7 (permalink) Old 12-15-2011, 09:58 PM
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Re: anyone read the sec form 10-k?

Nope no chicken in that pot for me.

I do keep up though. Why.. I don't know. It interests me.

Landmen have a rep lower than a third hand used car salesman anymore. Not tyhat it was that great at anytine. But, they were successful. They hussled and did a sales job on a lot of people.

Sad part is, a cobntract is a contract once signed unless you can prove the pitch was deceptive or the contract unlawful for some reason.

Is your position a short term gain - or a long term loss? Separate the issues.
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