Dose anyone know what some of the offers have been to he Smith-Goshen group?
I know there are a lot of companies that have been making offers.
Most of the leases that I have reviewed have a (one time) extension provision for an additional 3 years at the same lease bonus payment (assuming that drilling and production have not commenced).
Almost all 5 year paid up leases can be held by production indefinitely assuming the drilling company is producing in paying quantities.
If the drilling company has not commenced "operations" during the 5 year lease period and does not extend the lease an additional 3 years, then the lease is terminated and the owner can then market the lease as they see fit.
Hope that answers your question.
Information like this is NOT TO BE SHARED, as much as everyone would like to know it. People who don't commit to a Group effort as it progresses and educates its members, are only thinking $$$ and % ... and isn't that what you're asking for? It's easy to ride in on the coattails of others hard work and committment, but how many would own up to it? Companies seriously wanting AC won't put all their cards on the table if they don't know the size of the AC package, and many rights owners don't want to commit their AC until the whole story is written. Doesn't that sound like a catch-22? Agreeing to join a Group means one understands the concept that strength in negotiating for favorable clauses, benefits, addendums, $$$ and % COMES from EXISTING #'s of members and AC ... not "what might be".
A Group contract is a Letter of Intent that rights holders sign committing their AC to the Group. It is NOT a lease. Group representatives then have the authority to put the AC up for bid with the Group's agreed upon priorities. As bids come in, no company should know what others are bidding. If they did how or why would anything go up? Let them guess. Let Mobil or Chevron or Hilcorp or Chesapeake guess at how much the other is willing to pay. A blind auction benefits a Group, and Group reps know it. Given a time frame the cream will rise to the top pretty quickly! Time is on the side of the Group members because this Marcellus/Utica play is not going away any time soon.
I believe these may be the tactics Smith-Goshen is using. Many other Groups have successfully gone this route or are in the process in PA , on the OH-PA border, the PA-NY border ... if not doing it on their own then using the services of experienced professionals who have refined these tactics and a few more. Too many landowners either "sit on the fence" or believe the first friendly landman who comes along, but neither of those routes are for the committed Group members.
Are you participating in the Smith-Goshen group? Do you have land in Belmont County?
I hate to ask but can you send that info again. I don't know what I did but I clicked on something and the message was gone and I have no idea how to retrieve it again. Thanks.
Sent to your Inbox here on gomarcellusshale.com
I wasn't aware that there was a meeting last night. Wish I had known.