Replies to This Discussion

Permalink Reply by DKinPA on July 13, 2011 at 2:26pm

It is true that they are offering as much as $3500...amazing how they would not budge and immediately double the offer.  What does that say?  That history is a pretty good predictor of the future......and that is what we have been saying all along.  What has happened in other areas will most likely happen here.....and it is!  Those that are patient and organized as a group will get the best leases.  We can all do much better than $3500, we can get 20% gross with a depth severance if we work together.  Some people are quick to drink the landmans "coolade" and panic....the sky is not falling!

We control the supply and the demand will continue to increase!

Permalink Reply by randall gottus on July 15, 2011 at 10:51pm

...the landscape has changed again...as of 7/15/11, the Marcellus Shale Advisory Commisssion has approved "forced pooling" for pa. The governor is expected to sign the bill.

Permalink Reply by Jon on July 18, 2011 at 8:09pm

Does anyone have a copy of that lease f

Permalink Reply by randall gottus on July 13, 2011 at 10:36pm

...yes, Sean Farnham at 601 540 5936.  address is.. 115 WEST CUNNINGHAM ST., BUTLER, PA. 16001

Permalink Reply by Terry W. on July 18, 2011 at 8:39am

Does anybody have any names/phone numbers of oil/gas attorneys in

Butler?  Phone book does not contain much info at all.

Thanks

Permalink Reply by DKinPA on July 18, 2011 at 2:38pm

Thomas,  I would highly recommend Andrea Parenti from Dillon, McCandless, King, Coulter and Graham.  She is an O&G lease expert and she is who we use. 

Phone #  724-283-2200

Permalink Reply by Terry W. on July 18, 2011 at 2:51pm

Thanks, will let you know of outcome.

By the way, EnergyUS did not work out.

$2500 vs $3,000 from Shell.

They had a termination clause for the lessor

Have obtained a heck of a lot of info from this site, and other sites.

If I get kicked in the butt, it will be my own fault.

Thanks for all info

Permalink Reply by randall gottus on July 18, 2011 at 10:56pm

...yes, I am hearing that there are two attorneys in the Butler area that have worked with alot of the landowners there, and are highly recommended and have alot of experience. They both are O&G lease experts... Ronald W Coyer @ 724 794 2929, and the other one is Thomas J May @ 724 282 3141.

Permalink Reply by tomcats58 on July 21, 2011 at 10:28am

Shell is currently in Butler offering $3000 per and 15% gross lease. I heard some went ahead and signed. money is still low and % is definitely too low. the threat from landmen is always sign now or lose the deal when their bumper should read "sign now so I don't have to pay you more later and give you better language"

Permalink Reply by Jon on July 21, 2011 at 4:41pm

I think that they're just going after the people who need money. If the sky is $5,750 I wouldn't necessarily expect it to hit that, but I can see it going to $4,000 anyway.

Permalink Reply by Preston Joswiak on July 21, 2011 at 4:58pm

Since Shell has increased their offer to $3,000/ 15%  my feelings are to go for it. I signed a lease with 25 addendum's that I feel  make the $3,000 worth while.   Yes you will get more by waiting some day, but I think the sooner a well is drilled the up front money will be a non factor. The Clean 15% is worth a 20% with wellhead and costs taken out anyday in my book!!  Good Luck to everyone with your lease's

Permalink Reply by DKinPA on July 22, 2011 at 10:07am

Preston, I am glad you are happy with your lease!

Just remember, its not a first come first served business......they don't drill in the order that people sign leases, there are many factors in play.  One scenario is:  If you were a gas company and had two 1280 acre units to drill and both units had acreage that was going expire soon.  The average renewal for unit A is $3000 and the average renewal for unit B is $5000.  Which unit do you think they will drill first and guarantee they are HBP?   It would cost 2.5 million more to drill unit A and renew unit B than to let unit A wait and begin drilling unit B. 

As landowners we need to think ahead a little, be patient and analyze EVERYTHING!  There is more at stake than you may realize right now.....just look at how things have progressed in the Bradford area and the impact it has had both negatively and positively.

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