Most leases now are paid up leases. meaning that they will the full five year total, $3750, as soon as the deed clears. If you take this $750/yr keep in mind that those payments end as soon as they commence drilling a well so you may lose some substantial money. But since the payments may be spread out over five years, your taxes will be substantially lower.
I would also assume that a company may be more motivated to drill quicker so they can stop the yearly rental fees.
And I don't have a clue what the going rate is in your area. You would have to talk to as many of your neighbors as possible to find that out.
What twp is that in ? I am in armstrong county not far from indiana county line. I also signed with chevron and recieved 2000 an acre signing bonus. That is 5 yr with 5 yr option 15 % royalty I think there is a formula that they use to determine this. i can't remember it now but will give it to you when i find it. Don't quote me on this but i am pretty sure that's how they determne it
It is in East Wheatfield Twp.
I AM SORRY, I just re-read my post and noticed I made a typo.....
Our offer is a PAID UP LEASE with $750/acre for 5 years or $1500/acre for a 10 year lease.
So, our offer is a one time payment, not payments made every year. So, when Jim L. said we would be getting a total of $3750 after 5 years, that is not so. It is a straight one time payment of $750/acre.
Again, sorry for the confusion. That is why I said I think this is a little low.
I just wanted to "renew/update" this posting to see if anyone out there has any activity going on in Indiana County? Still messing around with Chevron's lease, but haven;t heard from any other companies in this area? Please let me know if anyone has any activity, especially in Eastern Indiana, right around Route 22 area.
Check out this site: http://www.marcellusgas.org/
Choose "Indiana" County
The map will show the industry activity in Indiana County: well permits, wells drilling, wells drilled and producing.
Click on the various symbols to learn more.
I'm in Eastwheatfield twp and am currently unleased. Had the same offer from Atlas/Chevron and would sign with them, but they refuse to even consider any part of my addendum. Its their boiler plate lease or nothing.
Also talked with EQT and they are interested, but no offer on their part. They have a pipeline butted up against my northern property line.
I believe with the MDS/Snyder auction over, things might start moving along. Between myself and my two neighbors, we have a total of 450 acres that are unleased
I am in the same boat. Chevron had me send them my addendum list and then rejected EVERYTHING I had in there, except for one which was a 3 year shut in Clause. I don't even know why they wasted my time having me get addendums drawn up? Now I am in it for $300 after getting those drawn up by an attorney and still can't use them.
I also agree, let's see what happens now that the whole MDS thing is over. I heard EQT was moving into the area, but haven't heard from them yet.
Thank you and to everyone for the info.
prospector, Im in west wheatfied twp. We have been trying to find a phone number for chevron. I was wondering if I could get it from you. I have 186 ac that is surrounded by atlas. thanks
No problem, the gentleman I have been dealing with is Mark Yingling 814-932-3475.
Things are still tight, no neg. really. They are offering $750/acre for 5 yr. or $1500/acre for 10 yr. And won't really look at any riders (addendums) to their lease. It is basically a "take it or leave it" attitude. Mr. Yingling is very nice and helpful, but I guess the desicion makers at Chevron have tightened the reins quite a bit.
Please keep in touch and let me know how you make out.