Company exploring oil leases in northern Washtenaw County
A company is considering drilling oil wells in northern Washtenaw County's Northfield Township, according to township officials.
The company has hired Bishop Land Services of Mesick to execute land contracts, obtain permits and conduct initial seismic tests.
A pump jack at an oil well in Saline Township operated by Paxton Resources. Representatives from a different company are seeking land leases for oil exploration in Northfield Township.
Angela Cesere | AnnArbor.com file photo
The police department issued the notice because they had received concerned calls from Northfield Township residents regarding the house calls in light of a rash of recent break-ins in the area.
Bishop Land Services would not reveal their client company due to contractual obligations.
Oil wells continue to be drilled in Saline Township by Paxton Resources LLC of Gaylord. The company has obtained permits for at least two new wells in the township this year.
Further information was not immediately available.
Washtenaw County's western neighbor, Jackson County, has the highest oil production in the state, closely followed by Lenawee County.
A boom in natural gas production has yet to be seen in Michigan, Crain's Detroit Business reported.
Amy Biolchini covers Washtenaw County, health and environmental issues for AnnArbor.com. Reach her at (734) 623-2552, amybiolchini@annarbor.com or on Twitter.
Comments
M Triel
Tue, May 7, 2013 : 1:39 p.m.
One of these oil men came to our door recently. He showed up out of blue at our door like a vacuum cleaner salesman. Trying a high pressure pitch to get us to " just sign right here and we will send you a check". He was visibly frustrated and upset when we started asking questions and when we insisted on reading the contract before we signed it. Yes, he really told us that we didn't need to read the contract. He said "it's a standard contract" and "all your neighbors signed it". He gave me his word that they wouldn't drill from our property or build anything on our land. However, thankfully I insisted on reading the contract. In the contract it states that I am giving them rights to build access roads, pipelines, pumps and storage tanks for oil and various fluids. What kind of fluids? He wouldn't tell me. Where will the acres roads and tanks be. Where will the pumps be? He promised they wouldn't put any on my land. Then why does the contact say they can? We told them to get off our land and never come back. I hope our neighbors do the same.
Southern_michigan
Wed, Mar 27, 2013 : 6:08 p.m.
These oil plays, in general, do not involve fracking in this part of Michigan. I was poking around the Michigan DEQ website and found a bit more information on fracking which is a good read. Learned a bit. http://www.michigan.gov/documents/deq/deq-FINAL-frack-QA_384089_7.pdf
Up in Northfield
Wed, Mar 27, 2013 : 4:21 p.m.
This really scares me. I live in Northfield Township. When we bought our property, we have to remove an old oil and gas lease from our title. Now we are at risk that our neighbors might sign, risking our roads and water so that someone else can obtain temporary monetary gain, and we will be left with the cleanup bill (and possibly with damaged health, worthless property, and no or poisoned water). That is not fair. If all consequences were limited to the property in question, then I agree that people should be free to sign away their rights. But they should not be free to sign away MY rights.
Clinton Resident
Tue, Mar 26, 2013 : 4:08 p.m.
This does entail fracking. I have a family member that works for the company out of Gaylord that is mentioned in this article. ALWAYS check your mineral rights!!!!
topicalahi
Tue, Mar 26, 2013 : 9:09 p.m.
Which company out of Gaylord?
ddjames
Tue, Mar 26, 2013 : 3:38 p.m.
Edit correction to my last post should have said : people going around buying the leases are NOT the oil companies...these are just the lease companies who then sell the leases to the oil/gas companies. Also the executives did NOT say sorry. They just said your 80 year old father (a widower) signed it, it's legal.
Michigan Man
Wed, Mar 27, 2013 : 11:23 a.m.
DD - would be better if you just edited out both posts!
ddjames
Tue, Mar 26, 2013 : 3:34 p.m.
like I said earlier, they are slick. Older people who live independently and function quite fine on a day to day basis but should NOT be signing legal contracts will NOT admit they should not be signing the 12 page contract. The salesmen are "so nice". This is FRACKING. Now there are a lot of hurdles that these oil/gas companies must meet before they could drill --there are minimum land requirements for one and one lease from one land owner does not usually satisfy that land requirement..so they have to get neighbors to sign too. Still, if they do get then the amounts of water needed for this process not to mention the environmental damage to these peoples property is huge considering my father for example does not live on a 1000 acres he lives on 29. You would not believe how close they can set up the operations to the house. That's not even mentioning the NOISE pollution. Keep in mind the people going around buying the leases are the oil companies...these are just the lease companies who then sell the leases to the oil/gas companies. One other thing then, the reason they are going around now is because OIL is so high! The experts we talked to told us this kind of oil extraction is expensive the payoff must be good. The last thing, we even petitioned the executives of both companies--you know what they said, sorry. Your 80 year old father shouldn't have signed it.
dotdash
Tue, Mar 26, 2013 : 1:47 p.m.
The problem is that individual landowners can make decisions that affect natural resources over a much wider area. Many landowners are now sorry they leased their land because their water (and yes the water of all their neighbors) is now contaminated. Here's a link, but there are many similar stories. http://www.vanityfair.com/business/features/2010/06/fracking-in-pennsylvania-201006
DwightSchrute
Tue, Mar 26, 2013 : 5:11 a.m.
'Further information was not immediately available' ? says everything about what is wrong with annarbor.com. Be a journalist and make a few more phone calls! This reads like a PR plug for Paxton.
Amy Biolchini
Tue, Mar 26, 2013 : 6:32 p.m.
I called the land lease company and spoke with the owner at length. He declined to comment on the record and would not reveal his client company.
talker
Tue, Mar 26, 2013 : 3:45 a.m.
Before signing a contract, tell the person you want to show the contract to your lawyer before signing it. Then consult a lawyer. In some cases, before consulting a lawyer a relative might point out something that is the point at which there's already enough information to not consider signing. There may not need the need for a lawyer when there's reason to not sign the contract, but definitely seek legal help before signing.
McGiver
Tue, Mar 26, 2013 : 2:03 a.m.
It can be very profitable for landowners to lease their land for oil or gas. And yes, it is wise to get legal advice before you sign. But to state that there isn't enough oil to make it worth the risk? Fortunately, if it's my land I'll decide that for myself.
Basic Bob
Tue, Mar 26, 2013 : 2:33 a.m.
some here will get suspicious that you have become senile and gullible. they will try to take away your right to decide.
jns131
Mon, Mar 25, 2013 : 11:55 p.m.
This is called Fracking. What this does is destroys the ground water and anything else that can go wrong with the environment. Especially with us being so close to the great lakes. So no to this. Period. New York and PA is also.
Michigan Man
Mon, Mar 25, 2013 : 11:51 p.m.
Nice! Drill baby drill!
Epengar
Mon, Mar 25, 2013 : 11:26 p.m.
The link that Ms. Schiffler posted above doesn't work for me. Here's the Extension's page on Oil and Gas Development for land owners. Lots of useful information! http://msue.anr.msu.edu/program/info/oil_and_gas "Bishop Land Services would not reveal their client company due to contractual obligations." Charming. Ms. Biolchini, I hope you can investigate this a little. I imagine that if any property owners do engage with these purchase agents, the documents will reveal who the actual drilling company is.
Joe Wood
Mon, Mar 25, 2013 : 10:14 p.m.
"Mineral Rights" may also include gravel. As others have suggested, consult an attorney.
motorcycleminer
Mon, Mar 25, 2013 : 10:13 p.m.
Drill baby drill...the greenies will get freaked ..but then they get freaked at their own shadow...
John
Tue, Mar 26, 2013 : 3:56 p.m.
Because we should all listen to Sarah Palin....she's so smart and all...
Homeland Conspiracy
Tue, Mar 26, 2013 : 2:52 a.m.
Drill baby drill...then sell it to China or India. Big Oil sells to the highest bidder
Nancy Shiffler
Mon, Mar 25, 2013 : 9:59 p.m.
First step for landowners: consult a lawyer. Don't sign a lease without doing this, and don't assume an oral statement is what will be in the lease. Just because they tell you all your neighbors are signing up doesn't mean they actually are. You don't have to sign. The MSU extension service website has some useful information: www.msue.msu.edu/portal/default.cfrm?pageset_id=58-675
Dan1737
Tue, Mar 26, 2013 : 12:18 a.m.
That link didn't work for me. Here's an entry point to all the good info MSU Extension has these issues: http://msue.anr.msu.edu/program/info/oil_and_gas
Great Lakes Lady
Mon, Mar 25, 2013 : 8:39 p.m.
Is this FRACKING??? .....which causes earquakes, pollutes water, etc......or is it an oil well??
topicalahi
Tue, Mar 26, 2013 : 9:13 p.m.
Hey jns, where did you find out that this had anything to do with fracking? I can't find any evidence of this anywhere.
Edward R Murrow's Ghost
Tue, Mar 26, 2013 : 1:19 p.m.
Yes, they do. http://www.technologyreview.com/news/508151/studies-link-earthquakes-to-wastewater-from-fracking/ GN&GL
jns131
Mon, Mar 25, 2013 : 11:56 p.m.
Sorry, but this is Fracking. Say no and don't sign anything. Warn the neighbors about this. This will destroy ground water and pretty much crack pipes too.
Usual Suspect
Mon, Mar 25, 2013 : 9:20 p.m.
"which causes earquakes, pollutes water" No, they don't.
dotdash
Mon, Mar 25, 2013 : 9:16 p.m.
Often all mineral rights are sold as a package. So you think you are getting an oil well, and it turns out the company can frack if they want to. These leases should be shown to experienced lawyers who can lay out what might be involved before you sign.
Amy Biolchini
Mon, Mar 25, 2013 : 8:52 p.m.
It is too soon to raise the fracking question. Bishop Land Services is doing seismic tests to see if it's viable to put in an oil well. That company does not drill oil wells.
Great Lakes Lady
Mon, Mar 25, 2013 : 8:38 p.m.
We take garbage from Canada and pollute our environment.....why not drill for oil?
cibachrome
Mon, Mar 25, 2013 : 8:27 p.m.
Whay are you jumping to the conclusion that it's oil that will be welled? There's quite a bit of gas down there, peeps. I happen to believe its well worth the 'environmental risk' . Not only is oil and gas used for transportation, its used to make fertilizer, plastic, artwork, expensive condominiums, stylish restaurants, I-Phones, I-Pods, I-toys, I-crepes and fake furs. Hey, I'm all for cutting back on food production, there's way too many people and the volume of some of them is outlandish, but, you gotta have art.
ddjames
Mon, Mar 25, 2013 : 8:26 p.m.
If you have older parents that live in this area watch out! These companies go around with leases in hand and before you know it your elderly parent has signed his/her real estate rights away. They are a slick group. Unfortunately, unless an elderly person has already been declared legally incompetent, the contract sticks. Very low $ for total control over the land. Terrible. And no way out. I know it because we lived it last year. My father afterwards said, the oil/gas lease company said it would be "like winning the lottery". Pitiful. Worse yet, our once business savvy father fell right into his trap. These long term, perpetual contracts are in place even if he sells the house and property--that's if we can sell it.
rumham
Mon, Mar 25, 2013 : 10:09 p.m.
To Usual Suspect: OK, replace with "incapable of determining whether to sign" with "likely to be ripped off." I'd like to know what your background is such that you've never thought whether a friend or family member had been taken advantage of. Pedant much?
Usual Suspect
Mon, Mar 25, 2013 : 8:44 p.m.
I an elderly person is incapable of determining whether or not to sign a contract, why are they living on their own?
Amy Biolchini
Mon, Mar 25, 2013 : 8:11 p.m.
What I'm curious about is how landowners will receive these offers. What would you do if someone knocked on your door and asked if you would sign a lease agreement for the mineral rights on your land? Lease agreements for mineral rights mean additional income -- and if eventually an oil well is drilled, there's an opportunity for additional compensation in some agreements. MLive reported a good story on the topic: "What you need to know before you lease your land for oil and gas exploration" -- http://www.mlive.com/business/west-michigan/index.ssf/2012/10/what_you_need_to_know_about_le.html
Amy Biolchini
Mon, Mar 25, 2013 : 7:57 p.m.
There aren't many details available at this point. I'm developing a follow-up story on oil and gas exploration in Washtenaw County as it relates to the rest of the state.
mermaid72
Tue, Mar 26, 2013 : 12:19 p.m.
Let's hope Ms. Biolchini, that our county is not being ecologically ravaged by this exploration. After the terrible mess made by Enbridge Oil, we should have learned a lesson. I certainly hope that you can keep us aware of what's going on.
Tom Joad
Mon, Mar 25, 2013 : 7:26 p.m.
How much oil are we talking about here? Proven reserves--the amount that can be economically recovered. Is it worth the environmental risk to drill to recover a thousand or so barrels? Michigan has negligible oil reserves. That they would even consider drilling here only points to the futility of carrying on with business as usual in running our highly oil-dependent lifestyle.
Elijah Shalis
Mon, Mar 25, 2013 : 10:07 p.m.
Michigan has several oil fields.
WalkingJoe
Mon, Mar 25, 2013 : 8:40 p.m.
Tom, you may be right about oil reserves around here maybe but not the whole state. When I was a kid we spent the summers up near Roscommon and there were active oil wells all over there and all through Northern Lower Michigan.
Buckybeaver
Mon, Mar 25, 2013 : 8:10 p.m.
Spoken like a true liberal. The gas powered combustion engine is still the most efficient of all available power options for our cars. Perhaps we should go back to the horse and buggy.