Anyone have any information on the recently permitted Baird Unit in Concord Township?
We are in Concord Township and received a declaration of pooling letter from Rex for the Baird NW unit. We have one of the BCLG leases which are pretty good leases. So it seems like a good thing. Would appreciate any opinions.
Matt, i have been told that if your property is inside a unit, and not leased, Rex is offering 13% net, and $10 per lease, nothing more. I know two people that leased for that, its either take the offer, or get left out of the unit.
I didn't think anyone with a BCLG lease would end up in a well unit since the terms of these leases are so good. I thought Rex would just let all of them expire and attempt to sign new leases with lower royalties and with deductions. I'm assuming we were just in the middle of the unit and Rex had to include us.
I remember that the gentleman who negotiated the BCLG leases with Shell thought he could get $4,000 per acre and a shut in payment equal to the per acre amount. He couldn't get that but in my opinion did very well for us at getting $3,250, 18% and no deductions. I just have limited knowledge of all of this but it looks like the no deductions is big.
And you are correct about the payment. It was just $25.00. Originally it was supposed to be $25.00 per acre but he reduced it since he wasn't able to get the $4,000 per acre.
Jon, They are pretty much suck with signing for $10 for the lease. It all depends on how the laterals run underground, maybe rex would have to come and make a good offer in the future, but they might have to wait 10, 20, 50 years before rex would need the parcels. At which time, they have already gave up the royalties in the unit they should have been in.
Once a persons property is surrounded by HBP land, the options are very slim.
BTW, this isn't renewing leases, when Rex was paying the big $$$$, the land was under lease with another company.
whats mineral rights trading for in and around this unit?
who are the buyers?
There is a sign in West Sunbury at the corner of Hooker Road says Sidewinder rig 62. I couldn't see the rig through the trees from Hooker Road. I turned on Campbell Road and then on Mckinley Road. You can see it from there.