Harrison County - $6500 per acre 20% royalties 5+5
PI - what twp?
Jefferson county Ohio $5200 an acre at 20% gross.
My friend told me he was offered $4000 per acre to sign with Paloma and he turned them down!
It was then we both agreed we'd be better off signing with GREAT RIVER at Attorney Corabi's Group in Steubenville, Ohio and next Friday and Saturday seem to be the DEADLINE to get in the group.
One thing I'll say for sure, Corabi got rid of the market enhancement clause and has a fair shut in fee, I'm signing!
My question is, why would ANYONE sign with Paloma?
From the contracts I've read, Paloma's clause on surface and subsurface damage only covered the landowner a mere $3000 per acre liability!
My friend's reply was "They Flip like Dolphins" referring to Paloma.. lol
If anyone wants to sign with Attorney Corabi and GREAT RIVER/AEP the deadline is next week and here are the dates. So far it's the best lease I've seen in a couple of years, and I'm a cautious guy.
My friend and I talked and his theory is, if we don't get signed.. soon the price will drop and we'll be left out.
It's nearly the 11th hour my friend.. is what he said.. so we're signing up with Joseph Corabi's group in the Steubenville, Wintersville, Ohio area.
Aug. 30 9:00 am - 7:00 pm - Lease Signing
St. Florian Hall 286 Luray Dr. Wintersville, Ohio
Aug. 31 9:00 am - 12:00 noon- FINAL Lease Signing
St. Florian Hall 286 Luray Dr. Wintersville, Ohio
Wouldn't miss this for the world.. no such thing as a perfect lease, but they fixed the lease up and no market enhancement.. so hard to beat that. I'm relieved, all the lease shopping has become tiring.
Sounds like Garfield could be easily mistaken for Des.
Paloma has already started paying landowners who signed leases in Belmont County, and they are within 60 days even though they have 90 days. They have drilled units in the Eagle Ford and Barnett plays and have Offshore Wells. They are far from being considered a 'flipper' and are backed by EnCap. They have sold some producing units to Chesapeake and Marathon, but who cares if you get a landowner friendly lease? Are you trying to say that Chesapeake doesn't flip their leases? How has the Ex-CEO of Chesapeake all of a sudden morphed into someone a landowner HAS to sign with?
I agree the 'Surface and Subsurface Damage' clause isn't the best, but the lessee is required to abide by Ohio Law and and the lessor can still go to court if costs to repair damage exceeds $3000/acre. When you look at the lease as a whole, it is TRUE GROSS 20% and $6300/acre bonus for a 5+5, with very good landowner-friendly language. I think most will trust KWGD and Bill Williams as being 'experienced' oil and gas attorneys. Your talk about the 11th hour and if you don't get signed is the one thing that makes sense. When all of your neighbors and most of the township you live in are signing with one company and their lease is acceptable, the landowner needs to take the lease to a knowledgeable lawyer, have it reviewed, and sign or be comfortable with possibly being force-pooled or only leased if the o&g company absolutely needs them for a unit.
davy - many good points.....one bad point.
"They have sold some producing units to Chesapeake and Marathon, but who cares if you get a landowner friendly lease?"
....certain companies will default on a landowner friendly lease......so it does kind-of matter if your lease is sold to, say......CHK.........but to one of your other points, the ex-CEO of CHK will not likely be any better.
I joined a KWGD group in 2011 that met in Cambridge and took everyone that came in the door. It was a very large group and the Pritchard Laughlin center was the only venue large enough to hold them all. One of the first statements out of Bill Williams mouth was "this is one group. We're all in it together. No cherry picking." Well, cherry picking is exactly what happened and the group was split into three pieces with different offers for each subgroup. KWGD pushed for quick decisions instead of continuing to shop the entire acreage and most (not I) signed. Maybe Bill Williams is OK as a one-on-one guy, but I take that with a grain of salt. His whole deal in Guernsey left me with a bad taste for his outfit.
Its Athens Township
PI - with who? how many acres? good gross language? (if you don't mind sayin')
All of this boggles my mind! It sounds like there are two groups going on for Jefferson County right now: one by attorney Joseph Carobi for Green River, and one by attorney Bill Williams for Paloma. Is this correct?
In PA (i.e NWPOA) it seems like most of the landowner's groups were put together by land owners. Once the group was formed with acreage, the elected officials would then choose a board. From there, attorney's would be picked that would best suit the landowner's rights. Then, they would collaborate to make the best lease for the landowner's. Then, at the way end, they'd take bids from ANY company. They would then collaborate, and choose the best company based off of the bonus payment, royalties, company reputation, and lease terms.
This seems so backwards with the attorneys as the heads of the groups and not the landowners. And then, to be working with only 1 O&G company?! The best thing about a landowner's group is the ability to create competition for the best lease terms and payments possible!
Is there something I'm missing here?