Wednesday, May 26th at 7 PM
Unionville Fire Hall

This is an informational meeting for the Northern Butler County Landowners Group.  We will be developing a collective lease to represent the needs of those of us who are landowners in Cherry, Clay, Concord, Marion, Venango and Washington Townships.  By working together we can insure the best possible lease while protecting our land and environment.  We are basing this group on the Friendsville Group, so this first meeting you will be asked to fill out a survey form to indicate what your priorities are as a landowner.  This survey will include what your wants and needs are regarding bonus payments, royalty percentages, lease duration, land protecitve addendums, etc.
We will be represented by an attorney with expertise in gas leases as well as a consultant with extensive experience in working with gas companies on environmental issues....both of whom are landowners in Northern Butler County and have a vested interest in acquiring the best possible lease.
By working together we can share the cost associated (yes a minimal flat fee) but more importantly we will have much greater leverage when negotiating with the gas companies and be certain that our needs are being met!
Hope to see you there!

*please, this is for landowners of Cherry, Clay, Concord, Marion, Venango  and Washington Townships only!

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Replies to This Discussion

A modest percentage of the bonus might be fair if results are achieved -results should be easy with 300,000 acres to offer. It might be worth adding up what the percentage of bonus might mean. An additional percentage for fees is difficult to fathom. Sales price is usually not part of the deal. If what is talked about is an actual sale of minerals rather than a well constructed lease -- be careful. That sort of thing is worth a lot.
The $10,000 Rex Energy received was for top tier Marcellus acreage near a major pipeline with several producing Marcellus wells and development plans. You are dreaming if you think acreage in Clarion or Jefferson County commands even a $1,000 per acre.
In washington county my neighbors and I got 300 acres together, met with the 3 major players, leased with the company with the best leasehold in the area, got a fair price, people make this too complicated. I could care less if these companies sell it for 4 times as much as they paid me, come drill the thing, im happy. I called snyder bros and knapp acquisitions because I heard about their large upfront payments. They want you to sign a 10 yr lease with basically no amendments at 12.5% and they add you to their grand total. I get their angle, but just wasn't for us. I'm happy with how the whole process went down. Keep it simple.
Again I will keep throwing around $10,000/ acre around based on Rex Energy. That was not a lease....Sumotomo has BOUGHT a percentage of the leased acreage to create an Area of Mutual Interest and to provide liquidity to Rex.
Also what is your definition of "gross sale price"? what does that include? are you taking the landowners royalties as well? Beyond the 15% on gross sale price you are charging 5% in fees? What exactly are these fees?
In addition, this is a 10 year lease? When are you paying the landowner for this lease?
Well said Jim. When companies pick up and leave because landowners become too demanding PA is going to have a lot of sorry mineral owners.
There is not any chance companies will pickup and leave Pennsylvania. They are coming here from all over the world. The Marcellus is enormous and they all want to get in on the act.

the question is not whether they will get to your property. It is a question of when. Particularly since they can drill in the Utica shale and the Upper Devonian [Ohio} shale from the same drill pads.

If you need the money now, take it. Otherwise wait for a better offer to come.
Really Sam?

Riddle me this.... what happened in NY?

Landowner demands got ridiculous and government involvement took over...much like what's happening in PA!
Everything has a breaking point. Think what you want. Hope you don't come out disappointed.
No way government will stop this raging bull forever. There will be some studies and some stronger regs to protect any existing weaknesses but the drilling will go on - even in New York. Pa DEP has hired and will hire additional staff to keep up with the work. Industry wants solutions to problems and will work with regulators. Likely to be some stronger regs on drilling and cementing that will cost the industry what you and I would think to be significant dollars but the industry has sufficient margins to absorb it.

I own 25 acres on the border of Marion Township, Butler County.  The property is in Irwin Township, Venango County but lies right on the county line.


The property is uninhabited and I would be willing to allow the drillers to use my parcel for equipment, pads, roads, etc. since I use it only for hunting.


Would I be permitted to join your landowners group?

I am a landowner of 48 acres in Slippery Rock Twp., in Northern Bulter County and I looking to join a landowner's group.  Are you considering expanding your group to other northern Butler County Twps. or do you know of any groups for Slippery Rock Twp?

Lance,  sorry but right now we are just concentrating on Cherry, Clay, Concord, Marion, Venango and Washington Twps.


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