The Thorne Family mineral rights legacy began with the filing of the last will and testament of Jonathan Thorne in the late 19th Century. Jonathan’s son, Samuel, was named Executor and carried out his father’s directives to the result that the extensive assets pertaining to Jonathan’s tanning business were sold and distributed to heirs. Among these assets was a large land holding comprised primarily of hemlock forests located near the town of Laporte in Sullivan County, Pennsylvania; hemlock oil being a natural resource important to the tanning businesses located in nearby Williamsport, PA. The acreage in question was approximately 27,500 acres, all of which was sold at the time. The singular aspect of importance to future generations is, the land sale specifically and in considerable detail and specificity, reserved out the mineral rights which, in accordance with Jonathan’s will, were divided in one-fourths and gifted equally to four of Jonathan’s surviving sons, Samuel, William, Jonathan, and Edwin (the “Thorne Family Mineral Rights”). The Thorne Family Mineral Rights exist today, albeit subject to clouds, title blemishes and generational fractionalizing that well over a century’s time has brought about.
In most cases, the Thorne Family Mineral Rights have been passed down to current generations by wills and trusts. Some family lines have treated them with detail, while others have had them included in estate residual language. Concurrently, and particularly in the early years of the Twentieth Century, most of the Thorne Family Mineral Rights were subjected, in some form or another, to the scurrilous sham of “title washing”. Additionally, and more recently, there has been at least one quiet title suit that has sought to “wash out” Thorne title. All of these issues are addressed in the confidential legal memorandum provided herewith. It is the purpose of this entire endeavor to restore the Thorne Family Mineral Rights themselves, consolidate the family interests into a marketable bundle, and administer the proceeds for maximum benefit of all family members according to their respective ownership.
In the late 1970’s, there was a flurry of interest in the Thorne Family Mineral Rights, as some “land men” rounded up numerous family members’ interests which eventually were leased and re-leased to Exxon. Many living family members today remember receiving small lease payment checks based on the then leasing bonus of approximately $1/acre.
The lid came off the cookie jar in 2008-2009 when the full extent of the shale gas resources residing in the Marcellus Shale became evident to the drilling industry and were beginning to be highly exploited. As drilling expanded, and for a variety of reasons, Sullivan County was one of the last to attract leasing interest. Thus, in late 2008, several Thorne family members began receiving draft leases from land men seeking to consolidate the potential interests. At that time, and with leasing bonuses ranging up to several thousands of dollars per acre, it became evident that there could be a real “play” for the family.
During 2009, a small group of family members representing most of the descendant lines from the sons of Jonathan banded together into a loose confederation dubbed “The Family Council”. Also at that time, a large number of family members each contributed a few hundred dollars in order to build a small “war chest” in order to proceed with the initial legal and forensic studies required to get a grasp on the situation. (These contributions have been carefully recorded, and will be reimbursed from first monies’ received from eventual leasing of the Thorne Family Mineral Rights.) As time went on, the Family Council began meeting regularly (by conference call), and the Family Council itself provided some additional funding.
A critical step in preparing an actionable strategy was the Family Council’s engaging the legal services of David Oberdick, Esq. and his firm, Meyer, Unkovic and Scott, LLP (with their main office in Pittsburgh, PA). Mr. Oberdick has prepared a confidential legal memorandum discussing applicable legal issues, and a copy of is included in this Initial Family Communication packet of information. While not without challenges, it is clear to both the law firm and the Family Council that there are reasonable and supportable legal courses of action that will lead to consolidating the important family legacy and bringing it under capable and attentive management. Again, though, while there is solid legal authority supporting an action to clear title in favor of the Thorne family members, all litigation carries certain risks and the success of the quiet title and ejectment actions contemplated as part of the Business Plan cannot be guaranteed.
In January of 2012, the Family Council met in New York City, and, acting as a Board of Managers, formally adopted a plan for proceeding. It was agreed to form an entity, Thorne Heritage Resources, LLC, (“THR” or the “Company”) and to empower that entity (subject to overarching family members’ concurrence) to raise funds and manage the natural resources implicit in the Thorne Family Mineral Rights. The Family Council engaged Meyer, Unkovic & Scott LLP to draft a Confidential Private Placement Memorandum pursuant, to which 99 family members have subscribed. The offering was closed, fully subscribed, in the summer of 2013. With the company capitalized, THR has begun litigation to clear title and confirming the identity and fractional interests of the heirs and successors of Jonathan Thorne. By mid-2013, over 75% of the known heirs and descendants had signed Powers of Attorney (POA) authorizing THR to represent and manage their respective fractional interests. Verification is ongoing, and it is expected that, by the end of 2013, the predominance of family members will have been located and will have signed POA authority to THR. The company will continue the activities contemplated by the Private Offering Business Plan in order to make the mineral rights marketable. The outcome of litigation to date appears favorable, and, presuming success in the courts, THR will then proceed to seek favorable monetization on behalf of the family through natural gas leases and related business activities.
