Should I contact

We've only lived in the area since late 2011 and since then we've never heard anything from the Marcellus companies.  We are only a few miles from 2 pads in Concord township.  Does it do any good for me to contact one of the companies? Edge Marc in particular seems to be busy in the area.

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Permalink Reply by Oliver Perry on July 16, 2013 at 5:13pm

I would say it's better if they contact you first. Then you know they have a real interest in your property and it might be better for negotiating. On the other hand, if you are tired of waiting you can contact EdgeMarc and see if they have any interest and what they might offer. US Energy is also leasing shallow rights in areas of Concord Twp.

Permalink Reply by nitr01 on July 16, 2013 at 6:07pm
US energy has contacted me regarding a shallow well. Does anyone have any guidance there?
Permalink Reply by Geo5 on July 19, 2013 at 10:28am

Oliver gives some pretty good advice, although I would add one thing.  If you did contact EM Energy about a lease, you would find out pretty quick if they were interested in your property by the amount they offer you.  From what im hearing in our area, they are paying $3000, and 15%.  Although it would be possible for them to sign you, and still not pay your lease.  I have heard them do that before, and even the landman will tell you that  the main office will decide to do once they look at the lease.  Remember, EM uses contract employees to get leases. My brother talked to them about a parcel of land, and this is what they told him, so he decided not to lease if they didn't know for sure they wanted the land lease.

Sorry, I didn't get back to your Message asking about US Energy.  As you know, they are shallow drillers only.  I would be concerned about signing a lease with them for nothing, and somehow they would get your deep rights.  You would need to get a good attorney to make sure you were reserving the deep rights. 

Since you are in a Shell area, I Would recommend that you Use SR law firm in Slippery Rock PA.  They do work for Shell and they would know the wording to put in your US Energy lease to protect your deep rights, and know what shell would want to see in it when they are ready to lease again in your area.

Permalink Reply by nitr01 on July 19, 2013 at 12:37pm

Does anyone have any examples of shallow well price per acre and royalty percentages.  From what I see, what they offered me is the PA state requirement of 12.5 %.

Permalink Reply by robert g olsavicky II on July 19, 2013 at 1:09pm

Hi

I agree with GEO5 check with SR LAW.  I used them and am very happy.  Go for 15% with as little production costs as Ron or Amy can negotiate. They are great and work with all the Shell Companies and know all the current rates and especially addendums. 15% and $1,000 to $2,000 seems to be the current figures.  It seems to be getting harder to get absolutly no prodution costs incurred.  They will eat up your royalties.  I feel lucky to have signed with none incurred because of SR LAW.

Bob O.

Permalink Reply by Larry Bobal on October 16, 2013 at 9:05am

SR LAW?

Permalink Reply by Oliver Perry on October 16, 2013 at 5:30pm

Larry,

Here is the website for SR Law.

http://www.srlawllc.com/Practice-Areas/

Permalink Reply by Larry Bobal on October 17, 2013 at 8:21am

Thanks

Permalink Reply by nitr01 on July 19, 2013 at 1:25pm
That price can't be right for shallow well. Do you mean deep?
Permalink Reply by nitr01 on July 19, 2013 at 1:40pm
I'm asking about the quarterly rental fee.
Permalink Reply by Geo5 on July 19, 2013 at 5:33pm

From what I have heard, US energy don't pay much of a rental fee if any at all, and they pay 12.5 percent royalty.  That's why I would make darn sure its only for the shallow rights. 

Permalink Reply by robert g olsavicky II on July 19, 2013 at 2:29pm

Hi

You are right it is for deep.

Bob O.

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