We have been in a lease with a smaller local company for about 3 years, expiring very soon. The terms were pitiful compared to other county terms I've heard about; $10/12.5%/3 yrs; boilerplate lease (less than two pages), and no auto renewal. Company is bugging us to sign one year at same $10/acre and 12.5% royalty. When I spoke with them, they indicated they are NOT doing any Marcelllus wels, and areonly interested in vertical and I assume shallower wells (we already had one on the property). Frankly, I'm skeptical, and worried about being "held by production" if I sign and another opportunity for Marcellus turns up. Working with an attorney on a counter-offer that will protect my interests as land owner. Neighboring land owners have similar leases, with another company, although research on the Butler County recorder of deeds site indicates longer lease terms (up to 10 years).
I'll keep this forum posted; glad to see a Butler County group!
Thanks for the Info. I live in the Lancaster Pa. area and own around 375ac of Gas & Oil in Butler Co Venango Twp. Living out of the area I don't get the local property owners info. So thanks again and keep me posted. One quick question did you ever hear of a company in Canonsburg Pa. called Rex Energy. They supposedly due leases in Butler County
Your welcome, Rob. I too do not live in the county where I own the land, so I can sympathize. It's often hard to get info. The recorder of deeds site is free, and if you know the neighbors name, you can view all of the leases for that property.
I have heard of Rex Energy. They are a big player in the Marcellus, and I keep hoping to hear from them. I may even contact them, but I don't now how effective that is.
Here in Venango Twp...Saw in the Butler Eagle about a month ago that Rex is opening up
an office in Butler. Tried to get a phone numer, but must not have been open yet.
Just joined a group to represent local landowners. 15%.
I've been looking into Rex Energy, and it seems like they're pretty committed to Marcellus Shale development in Butler County. I believe they're the only company to have drilled a horizontal well in the county so far. I remember when they were drilling back in the spring, and I drove by the well in August and there were barely any signs of the drilling pad. Also, I've heard in their radio ads they're the only company in Butler to have built a gas processing plant to treat the "wet" gas. I listened to a couple of their CEO's presentations posted on the company website, and Rex will be running a horizontal rig in Butler all of 2010.
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]