I was wondering if people have started getting royalty checks in Bradford yet. My husband and I own 25 acres and have negotiated 20% royalty along with a $5500 bonus. We signed last year. How much will we make in royalties? I know that there are many variables but I'm just looking for a ballpark. I know there are online calculators but I have no idea about some of the variables I need to input. If anyone can help me out with info, please let me know. Thanks!
just heard from friend over that way that this is eog's offer now.......
from the experiences over the last three years, know that this could be MORE tomorrow, and it could be LESS tomorrow............................we are played like fiddles.
I live in Ridgebury and I signed for only $1950 per acre. In a way I wish I had signed for more but I didn't want to get greedy. I also know someone else who just signed with EOG for $4000. If you ask me it's pretty good. But I'm sure a lawyer would tell you to hold out. In hind sight I think there are other factors that are more important that I wish we had negotiated. If I knew then what I know now I would NEVER have given them the option to extend our least for a 6th and 7th year, I would have limited the gas company to minerals at or above the marcellus shale and nothing further below, I would have negotiated to get paid for pipelinem etc. EOG is getting pretty active in our area so you might want to get the money while you can. Good luck!
just heard from friend in ridgebury twnshp who recently....last few weeks....leased with EOG ....she has a 4000/acre 16% royalty five year with no option to extend lease. i don't know about any pipeline factors.
all better than most chesapeake leases.....these pay royalties AFTER production costs inc any tax/fees are paid. can take a chunk out of amt of royalty.
remember..............the ROYALTY is the big deal, more than the bonus......and the higher that can be, the better. lots of EOG activity for over a year along springfield rd between columbia crossroads and berwick turnpike, if you want to take a peek.
friend also said chesapeake was not interested in leasing her land.
holding out can go both ways.......................no guarantee waiting will get more lucrative. or less. this is why i say they play us..................no way for an individual not in the decision making part of company can know, i don't think.....and certainly haven't met anyone else who ever seems to know anything.....until it happens. also, remember, VERBAL assurances do not count.................get everything in writing. good luck....sure has become a crazy world we have here.
Thanks Barbara - appreciate the info. Every little bit helps.
Can you explain the Royalties after production costs, including any tax fees are paid. What does that mean to me the landowner? Do most pay royalties after production costs and taxes or before?
from what i understand, MOST companies pay as the gas comes from the well..................................so more money involved. good ol chesapeake writes into the leases that royalties are to be paid AFTER production costs. i only recently learned that that would include any severance fee/tax. so we, as chesapeake lessors are rather ripped off. and my lawyer at the time never saw a problem with that part of the lease. soooooooooooo you cannot be too careful; read and understand EVERY word in the lease; consult with a COMPETANT gas lawyer............for even the lawyers have to scramble to keep up with what the company lawyers come up with.
interesting world.............no room for trust or assumptions as to the fairness of the company. i am sure others here can explain as well....as to what their lease does regarding this and as to what it all means to you.