I just signed with Antero Elk Twp Noble Co. Ohio & glad i did not sign with AEP.  They are not landowner friendly

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Larry, Could you explain to me what is so great about Antero, and what did they offer you.

Thanks

A fair contract    $6500 per ac. / 20% gross   got paid in 40 days from time of verbal agreement  & when i signed  i got paid

Larry,  Did your gross contract have an enhancement clause and a extension.

If you don't mind could you give me the land agents name & company, I also

have land in Elk township I would like to lease.

Thanks

This sounds like someone who works for antero .

18 months ago Antero was signing leases in Noble county with a 21 % royalty.

In April Antero was paying 15,000 per acre at Piedmont lake.

They will not offer a lease without an enhancement clause or without an extension

This to me does not sound land owner friendly

What do you think 

No company  is going to offer lease without enhancement clause.

Our leases were not with antero, but all our leases have 18% and 20% gross at wellhead with no enhancement clauses .. The attorneys even put in lease the definition of "gross at wellhead"in case they forgot what "gross" really means .. We do have an extension option .. We would not sign with enhancement clause .. Its ure ground , ure minerals ,if they want it , they will accept ure terms . After the thrill of the "sign on bonus" per acre, u are left with the lease u signed... For the rest of ure life .. And probably your childrens life ..choose wisely and good luck

GW3- No one offers lease without market enhancement. No one except AEP or it shell companies. All the money you get will be paying attorneys fighting them to honor the lease.

It's  Aubrey McClendon a tiger doesn't change it's stripes. This is a man who rather take on lawsuits than honor his contracts. Besides who would lease with MCClendon unless there were no deduction specifically in the lease. McCLendon will spin anything in his favor.

market enahncement wasn't a bad thing until McClendon CHK decided to use it to screw landowners out of their royalties.

here's what AEP  is probably going to do with their "no deductions at the well head"lease/

quote"

Now I'm concerned.   I met with Antero today and they made a starting offer that was better than average for Tyler/Wetzel.  While we discussed the terms among other things, I asked them about the enhancement clause.  I also told them that Chesapeake signed a gross lease with me.  They told me that Chspk doesn't sign gross leases and I showed it to them.  It reads, "GROSS ROYALTY; MARKET ENHANCEMENT:  The Lessee shall pay to the Lessor free of cost, a royalty equal to eighteen percent of all oil produced from the premises, etc... and shall pay lessor eighteen percent of the proceeds of all gas produced and saved from the leased premises.  Said royalty is to be computed at the wellhead.  It is agreed between the them that notwithstanding any language herein to the contrary, all oil, gas or other proceeds accruing to the lessor under the subject lease or by state law shall be without deduction, directly or indirectly, for the cost of producing, gathering, etc...hereunder to transform the product into marketable form."Now, the guys from Antero are telling me that this wording allows Chspk to seperate the wet gas byproducts(methane, ethane, etc...) and sell that without having to compensate me for that, because I'm getting paid at the wellhead based solely on volume.  I'm not in agreement with them because all those constituants are products of the gas but they did get me wondering.They then tried to justify Antero's "enhancement clause" and told me that it was a much better deal.  My response was, "Now that you've got me questioning the Chspk lease, I want the enhancement totally removed or explicitly saying that I will pay absolutely NO production costs and my 18% is to be calculated on oil, gas and ALL products thereof, or I will NOT sign any lease."  Clearly, to me, that enhancement clause is another way of them charging the royalty owner production costs and if the clause in the CHspk lease actually ends up meaning what they say, I'm gonna be pissed."

There is no absolute "wellhead" price. The way they compute it is they sell the post processed liquids at the market price, say $12, then they figure out how much it cost to process it, say $1, the wellhead price is then back calculated $12-$1 = $11.  So $11 is what the liquids where worth at the wellhead and that is what you get. This is called the net back method of calculating royalties.

Some gas companies would subtract another $1 from the $11 and give you $10, this is what the "no processing costs to you" prevents, it doesn't stop the gas company from computing royalties using the net back method.

I am not from the area, but I was wondering if there is any landowner groups

negotiating leases in Elk township. Where I live landowners join together in

all sizes of groups to get better offers.

Thanks

Hello,

I live in Tennessee but have a small parcel in Elk Twp. 

Any activity there?

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