Anyone recently leased land in Bradford County? Especially in the Franklin area? We have 120 acres in Franklindale with a lease that ran out over a year ago. the best offer we have had is from Chesapeake for $500/acre. Personally I feel this is an insult....our neighbors say they got 1500 last year and they both have very small properties, no chance of a well being put on their land. Our land would probably almost certainly have a well put on it eventually.
according to chesapeake, they have three wells going in within 4000 feet of our property and that they are setting up the units so that we will be an island of unleased land in the center of their wells. Are we totally screwed? I am guessing it would not be worth it for us to contact other leasing companies as Chesapeake holds almost all the leases around here.
Lease bonus is peanuts to the continuos royalties. Keep in mind it is a 1 time shot. The most impactful thing in a lease is royalties rate. A good well is 150k per year per well. I have seen them work around lots. There is a ton of gas out there. They will take path of least resistance.
Rob, why don't you make an appointment to speak with CHK. They have an office right here in Towanda PA. It might be worth your while. Signing bonus is not peanuts, its a big deal. It will take a long time to make in royalties what you can make in one big score on the signing bonus. In the long run the royalties will be more. Also I would be interested in buying your land if you are serious about selling. If so please e-mail me at [email protected].
Thanks, not sure what you mean by making an appt with CHK? We have all ready spoken with them directly, they are the ones offering nothing for a signing bonus. They told us they would be putting in three wells surrounding us and excluding us come fall...so far, we havent seen any well permits applied for though. I do realize that in the long run royalties will be more, however feel if they are going to tear up my property with a well, then I deserve fair compensation. Like I said, I might be willing to accept less if they would have a no surface use clause, but they are not interested in that.
As for selling our land...everything has a price :) We are debating putting it on the market, but have not as of yet. We have a very nice, young house and pole barn on the property. Currently use it for dog training. would be happy to talk with you if you are seriously interested. But we dont NEED to sell...it is just an option.
Call the Chesapeake office in Towanda and speak with George Wiseman. Don't give him all the background, just tell him you are interested in coming in to speak to him about your property. Tell him if possible you would like to see maps of the area. When you get there you can explain that the lease has run out and are interested in re-leasing the property. I know of someone right in the town of Towanda with not much acreage that was just offerd 4000k per acre. If you do make an appointment make sure you bring your tax id # or deed so they can look up your property.
Yes, I am serious about purchase, If you have considered any figures please feel free to e-mail them to me.
You are obviously a prescient person. You wrote the above more than five months ago. With NG today at or below $3.00, your wisdom is showing through the haze.
Of course it is, and it was, a joke to assert royalties are vastly more important than bonus money. It is, and it was, merely an artifice to cheat landowners out of the bonus money they deserve.
I commenced receiving royalty checks very early in 2011. Today my check is considerably less than half what it was at the beginning . . . . and my check amounts are falling drastically with each passing month.
I did receive a very good bonus when I leased. That has been my sole saving grace.
Rely on and focus on the royalties??? Horse maneuvers!!!!! What a load of crap!
I don't know of anyone with a CHK lease whose royalties are not AFTER their expenses plus any tax .
And do research lawyers..............some do know what they are doing with O and G; many do not .
Here is a map that shows Bradford County Unit Locations. http://dl.dropbox.com/u/31036030/Bradford%20Co%20units.kmz