Hello folks I'am posting this to give folks a ideal of the value of their mineral rights here in Greene County.
I leased my Marcellus shale five years ago for five thousand dollars an acre recently the company elected to extend the lease for another five years paying the oringal bonus money again.
So that equals 10 thousand an acre.
I recently signed a lease with a land group out of WV for 4500.00 an acre for the Utica. Only the Utica.
All that togther equals 14500.00 an acre in the last five years and I still have everything between the Utica and Marcellus still unleased along with everything beneath the Utica still unleased.
Iam posting this for all the people contemplating selling their mineral rights here in Greene County PA DONT!!!!!!!!
There worth way more then you will ever get paid for them upfront.

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We split ours too. You stipulate it in your contract. My current lease only allows Marcellus. Nothing before, nothing deeper. Just Marcellus. That way if they want Utica or whatever they may discover years from now, they have to come back to the table.

RMC  very good post thanks  Springhill TWP  Greene co. Rice has ours they bought from Chesp. Jury still out on Rice.keep me informed on any Greene Co. news. 

Has anyone have the scoop on Fayette Co?

Had info before that the Utica up here on the mountain was super thick but the infrastructure has been slow.

It's nice to have an informative post. We are now Rice also and hopeful of a good partnership with them. They are pretty busy already, trying to develop rows for both gas take away and to bring in fresh water to minimize truck traffic. I think next summer will be very busy in SW Greene Pa

where are you located relative to fayette co?

Springfield twp

i live in texas but have mineral rights near Monongahela river in fayette co.how far is your property

from fayette co?

thanks for your post.i didn't know that you can split lease.

Monongahela river is western border of fayette co.  Springfield twp is up on the mountain northeast corner of fayette co

Hi rmc in Greene County,

I want to say upfront that I'm an independent contract Landman and have been in the Oil & Gas Industry for twenty-two (22) years.  I just wanted to chip in here with a thought or two so as to add some additional information from my perspective . . . . not good nor bad . . . . just something for all to consider when thinking about leasing and/or selling some and/or all of their oil, gas, and mineral rights (OGM's) to somebody else/entity. 

I think that it's a good thing that you posted what you did.  So doing the math, it averages out to be $1,000 per acre per year over a ten (10) year period to lease out the Marcellus Shale Formation.  Now, did you actually have a clause in your original lease 5 or 6 years ago stipulating that your lease was for Marcellus Rights ONLY?  If not, then you should not go ahead and lease the Utica Shale or any other drilling formation as that would still be held by the original Lesse/Drilling company that has paid you the Bonus Per Acre of $5,000 two times totaling $10,000 for a ten year period ($1,000 per acre per year over 10 years).  If you do have the stipulation clearly mentioned on an Addendum to your original O & G Lease that it's a Marcellus ONLY Lease, then you would most likely be ok to split it up.  Most companies do not entertain separating the different drilling horizons and would only do so if there's intense competition between several drilling companies in that specific area of a specific township, so to secure a lease, they would go to measures otherwise not willing to ever do before in the area.  In other words, the "Perfect Oil & Gas Leasing Storm" so to speak, and that can happen, but as one can tell, that is more of an exception rather than the rule.

Lastly, let the Seller/Lessor BEWARE for sure regarding the recent "Utica Only Drilling Lease" which is supposed to pay a Lessor separately to LEASE the Utica Drilling Rights. I've heard about somebody going around saying that they're all excited about leasing the Utica Shale for mainly oil and so forth . . . and offering $4,000-$5,000 Bonus Per Acre etc . . . However, this may actually become a MAJOR ENTANGLEMENT that could very well end up in legal issues between this new guy/Utica pitchman's company, yourself, and the original Lessee/Drilling Company who recently paid you $5,000 Bonus to extend the lease for another five years.  Here's the most important question(s):

1.) Did you sign up and go ahead and lease your Utica Rights to this latest guy/sales/Landman?  Remember, if there was NOT any stipulation in your original lease, you can't/shouldn't legally do it.  You can sell some and/or all of your mineral rights, but not lease them while that original lease is in effect.

2.) Did you receive your check for $4,500 Bonus per acre and did the check get deposited in your account?

I'd be interested in your feedback or anybody's feedback with this situation and/or any other item of interest.  I'm not representing any company and have no axe to grind and simply want all parties to consider the many aspects and legalities when leasing one's OGM's and/or selling some or all of their OGM's to a company.  Thank you in advance and I hope this has shed some light on a new context(s) for any future situations others may find themselves thinking over.  Merry Christmas.  HE is the Reason For The Season; and let's not forget that.

Kevin Yeckley

Kevin Yeckley

Yeckley Business Ventures LLC

cell  412-651-3736

Kevin, i am not the original poster, but my 2010 lease is very specific that it is for marcellus only and that was not an uncommon provision in my area. The gas companies know this and i have been contacted by the lessee re a utica lease. If landmen are not doing any research and offering leases to people who do not have the right to lease shame on them.

Your post is confusing to me. Do not leasing companies do title searches anymore?

What are you trying to say to mineral owners? Be afraid to lease the utica because you might endanger your other lease? Lease them all at once ? I do not agree that either is in the best interests of the landowner.

Of course it would not be right to lease something you know you do not have but i think the better advice to landowners would be not to sign anything where they warrant the title to protect themselves from some issue they are unaware of.
I depends on the lease whether the landowner warrants the title. If the oil company writes the lease, it will say that. If your lawyer writes it should not. Many leases do not warrant the title.

Of course, it would not only be wrong to sign a lease selling something you know you dont own. But rather than affecting the original lease, i believe it would just invalidate the second one. Kind of like if you get married twice it does not invalidate the first marriage, the second one is not valid. It is no different than if your father sold the minerals years ago, and you, not knowing it leased them again. That is why all those people are at the courthouse running title searches and why you dont want to sign anything that says you do not warrant the title.

But for those of us who have never leased anything, or anything but the marcellus, and there are many, the original post is very good news.

Hi SSC and All,

That's good that your lease specifically states "Marcellus Only".  What township is your property at?  Is it also in Greene County PA? Do you own a sizable amount of OGM's/acreage? Have they drilled it yet and is it part of a producing Unit?  If not, did they have an option to extend and did they do so and have they paid you already? 

Regarding the title searching and so forth, most companies have title abstractors do the "book/OGM title searches" and then we as the Landman get that information and go from there.  Therefore, most Land Agents have verified OGM title information as to who is the Lessor(s) or the Heir(s) and so forth.

Also, everybody should be aware and know that it's really not as simple as to look at the current oil & gas lease on record in the Recorder of Deeds Office at the Courthouse and read over what is on public record.  I say this because most every company records a General Memorandum of Lease with the Recorder's Office so as to not show the specific terms of that lease.  We can all see that the property and/or the corresponding OGM's are under lease, the date of the lease, and the primary term of the lease, usually five (5) years.  On occasion they will put the extension clause in the Memorandum but not very often.  The other things such as separating out the different drilling formations would NOT be shown, so at that point it's anybody's guess as to what is, or is not, actually leased if and/or when the Shale Formations are leased separately. So the landowner would need to be called and asked about the specifics of the lease terms and then a copy of the original oil & gas lease must be in the possession of the Lessor(s) so as to verify the facts pertaining to what is leased, and, what is not leased. 

Having said this, the Lessors/Property Owners and/or the OGM's owners should know that these Oil & Gas Exploration & Production Companies are not really wanting to "split up" the shale formations but in some instances I've seen some of them coming around IF THEIR COMPETITOR(S) will give in and go ahead and do it.  Like I said in my initial posting, it needs to be a VERY COMPETITIVE LEASING SITUATION which is essence is the "Perfect Storm" for the Lessor and/or the OGM's owner which in turn will get one drilling company bidding against the other drilling company(s) and so forth. 

Of course, keep in mind that these drilling companies are not stupid and they're not likely to self destructively drive up and up and up the price per acre AND get less to drill for their investment.  Hey, let's just see how it all plays out, but my guess is that the "Perfect Storm for the Lessor(s)" is going to be rather fewer and farther between as compared with becoming the norm. 

For those Lessors experiencing this "Perfect Storm" if I were them, I'd also look to get the highest possible amount and attempt to keep separate the Shale Formations too . . . . if the drilling company(s) will go along with it.  Also, some of the companies that I've talked to say that they're definitely much LESS LIKELY to pay Top Bonus Per Acre Dollars for just a "partial lease with these depth restrictions" when separating out the Marcellus Shale layer, the Utica-Point Pleasant Shale layer, and/or the Upper Devonian Shale layer(s).  To them, they are getting a watered down lease opportunity and instead of paying the $4,000 or $5,000 or sometimes $6,000 per acre could very well be cut in half or at least reduced accordingly. 

Lastly, the guy/company who's saying that he'll lease the Utica Shale as he's all amped up over getting lots of oil and such, I'd like to see who has signed up with him and have they been paid with the money in their bank account.  Otherwise, it's a good story, and that's about all it is. I could pick up the phone tomorrow and claim that I'm Fred Jones from Sunoco and that Sunoco will pay whatever I felt like saying . . . how's $20,000 Bonus per acre and a 30% Royalty and the entire Township and the entire County for that matter would be screaming from the rooftops about this "great deal/great offer from Sunoco or Shell or ABC Oil Company".  The proof is in the signed lease(s) and when the money is safely in your account, then and only then will I, and so should you, only then know that it's a "real deal".  Merry Christmas as it's the Blessed Birth of Jesus as Lord and Savior that is "The Reason For This Christmas Season". 

Kevin Yeckley

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