We were part of the Smith Goshen Group Lease with Rice that expires in approximately one year. Rice sold my lease to Ascent about a year ago. Got a call this week from Purple Mountain Land Management saying he was working with a group that includes Rice, Ascent and XTL wanting enter into new leases right away, not wait for the expiration. He offered $500 an acre per year on one-year leases with options to renew each year for a 5 year period. Does anyone else know about this? Since we all expire at about the same time, is there any group effort underway, similar to what we did 4 years ago? Note, my land is not in Smith or Goshen townships but rather in Pease. Is this more the norm now or should I be holding out for something more akin to the old lease?
I guess the other question is why do they want to pay me $500 an acre to lease my land under a new lease when they have an existing lease for that land. Think the new lease might haves\ a much lower royalty amount?
I would tell them to pound salt. Wait until your lease is up, ask for a release if they do not renew. You can get 500 acre any day of the week in Belmont county; Things are going to get better soon. I am in SG as well. They sold\swapped mine to gulfport. I am in a well unit that is not permitted yet due to forced pooling issues. Doubt they are going to get a spud in the ground in time. I am not budging. renew or release.
Ever notice that they never come around wanting to sweeten your end?
Pease Township, Scotch Ridge area.
washington township and smith township. Near Centerville.
Sounds like a lease flipper. You sign, they sell and take the difference between the $500 and the thousands they will make. These people come out of the woodwork at some frequency, since they can operate in the kitchen with a printer and a poorly written lease. A Rags to Riches Company, using your potential Riches.
This is probably a mailing to everyone in the area without knowing the status of your lease.
DPS Penn is a good example of Purple Mountain Land Management. Never lease to a non-driller, since they will take what could have been your Big Money Bonus.
Did anyone have a different experience with DPS Penn, "With You All The Way (to the bank)".
If this is too negative, I could smile while typing the truth for you.
I would contact Larry Piergallini in Tiltonsville Ohio - he is getting a group together for Jefferson county; this is where my dad has some acreage. This is for Ascent. I went to a meeting in June or July this summer, and heard some of the info on the renewal of these leases. Even though it is a different area, he might have some insight.
Be aware that he is VERY busy and it is a small office. I like him now because as a farmer first and a lawyer second, he has alot of information about how to protect landowners. His family has a lot of acreage and he learned from needing to protect themselves. We (Belmont county, Mead township) saw him last month because we have recently been approached by Rice for a pipeline ROW - he spent a good amount of time with us about pros/cons and we came away very informed.