My Listings

The Farm

Fields and paddocks next to
"The Lake"

Fields, hillside and gas well above
"The House" and "The Barn"

Part of "The Farm" - looking across
from one hillside to the other
- in early Spring

There are two water
wells on the
property, one each
for the house and
the barn. A gas well
provides
FREE
NATURAL GAS
for the cooking and
heating of both
"The House" and
"The Barn".

"Wolf Lake Farm" has
been a 65 Acre working
"Organic" farm for many
years, following organic
farming practices, raising
cattle in 27 fenced and
watered paddocks, set
upon 40 acres of the total
65 acres, along with some
chickens, turkeys and
ducks in two large chicken
houses.

***LIVESTOCK ARE NOT
INCLUDED IN SALE***

MINERAL RIGHTS:
The sellers will retain royalties being paid for the two
active wells on the farm. All other mineral rights would
convey to the buyer.
This includes up to 350 MCF of free gas, coal rights, and
the rights to Marcellus shale gas reserves.

A WORD ABOUT MINERAL RIGHTS:

The gas wells were drilled by T.W. Phillips and PC Exploration, both companies that are locally owned by the Phillips family who are a
large regional gas producer. All of their wells are "shallow wells".

There are 2 producing shallow gas wells on the property. There are currently no plans to drill additional shallow wells on the property
as there is no way to get 1,000 feet between the existing wells and the neighbor's wells and fit another one onto this property.

Should the gas company decide to drill a Marcellus (deep) well then the property owner has the right to approve the site selected and
would receive a 1/8th (one-eighth percent) royalty from any gas produced from such a deep well. It is hard to imagine that this
property is suitable for a deep well as the gas companies prefer a minimum site of 600 acres for drilling a deep well.

Phillips controls the Marcellus gas by virtue of their lease on the property. Their lease runs in perpetuity because they have drilled a
well on the property. They can drill a Marcellus well (unlikely) or they can sell the deep gas to another larger player that is drilling for
Marcellus gas (more likely). If there is drilling for deep gas, the new owner would get a 1/8th royalty on the gas produced.

Any signing bonus would go to Phillips as they are the lease holder and any royalty above 1/8th would also go to them since they are
the lease holder and free to do what they want with the lease. The new owner has no say what-so-ever as to who drills or if anyone
drills for deep gas and neither do the sellers or the buyers of this property.

If there is any serious drilling in the Marcellus in southwestern Pa. then Phillips may possibly sell all of their considerable leases to a
larger company such as Chesapeake or an XBO which are huge international gas companies. Phillips is too small to play this game.
There is presently some concern that all of this Marcellus frenzy is just a chance for "big gas" to inflate their "proven reserves" and
run up their stock price.

~Executive Organic Farm Residence~

Wolf Lake Farm

~ CONTACT US ~

Mark Harvey Smith Real Estate
Mark Harvey Smith 412-585-2227

Glenn Cook Real Estate
Don Kramer 724-238-6881