Hi David, thanks for sharing with us..according to these recent reports about Chevron being agressive in purchasing leases from Chief O & G...
You have to wonder why the lessee gets better offers than the Lessor?? Isn't it our lands? Time we landowners take a good look at the monies being made off of our inheritance or ownership...
You see we even have to call the O & G companies to see where our leases are, what stage of the agreement that they are in...cause they haven't bothered to care about what we think of what they are doing. I recently had to make a call to Chief to say, "hey, what's up...haven't heard from you all in years"...and guess what...they had included some of our acreage in a unit back last Oct. and didn't even bother to inform the landowner?
Yeah...should we think that we don't have much to offer and take less than what they are getting for the leases that they paid either very little or made sure that they had a trick clause to protect themselves when we would find out that they offered us little and made profit within months by selling part of their interest in our leases.
when I spoke with the Chief rep about the unit formed...she mentioned that it would have been good if I had a "pugh clause' in the lease but I must have signed an old contract ...too bad. Cause they are holding the entire parcel because of a few acres. When I inquired about Chevron buying leases and told her that I read that some of the sales were about 14k per acre...she said oh, not that high...highest was about 10 k per acre.
of course it matters the density, the area of the marcellus, location, transport ease, etc. to qualify for the higher per acre figure....so pls David, talk to others who have leased in your area and call another O & G to see if they want to lease.
Here's the actual link that mentioned the 14k per acre.
so do think clearly about how much you allow in making a lease with anyone. Also pls do take the time to read about addendum clauses cause the O & G companies are so poorly organized in the contracts with the landowners that they use old out dated contracts (that give them the upper hand) and then the landowners have to hope for an addendum to override the old clauses. Several here know what I am talking about.....and even some attorneys don't know what to write in the addendums so you have to know a little to even know how to choose an atty....pls do use an attorney that does ROWs and oil leases if you can..
It really is about just how good an addendum you can put together...and pls don't depend on the landman/agent showing the way....he lied to us and we signed and now years later I find that there is even a clause that covers if the landman lied. Now I know that people are not all the same...you may have a wonderful landman that wouldn't lie....but the man we spoke with did not think it that important to tell us about 'Pugh clauses' and he certainly knew when he told us that we could easily learn all this and just renew in five years...he forgot to mention that the clauses on the "old contract" seem to have certain lessee rights stated that override that easy to learn as we go and just renew in five years with another lease bonus.
Here is a refresher on the CHK STO deal, similar to JV's in other shale plays.
Chesapeake just offered me $3500/acre/five years with 18% royalties.
Did not accept.
What part of Pa. are in?
We are in Bullskin Twp. by the golf course.
Thank You for quick reply.
Does that include the Utica Shale also for $3500?
I think we have Utica Shale under our land in Fayette County Bullskin Twp. Pa.
I wonder if anyone is getting offers of $3500 in Fayette County.
Marcellus shale only, all else reserved, $3500/acre/5 year/paid up front, Greene County