Shallow Well Leases

Recently got call from landman claiming to represent Union Land Resources offering a shallow well lease at $500/acre and 12.5% of the GROSS for 5 year lease.  We have already leased the Marcellus depths and did not include the shallow well depths in that lease.  Wondering if anyone else has been contacted and what kind of offers are out there.

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Replies to This Discussion

Permalink Reply by ShaleAdvice (Steven C. Townsend) on October 30, 2011 at 3:50pm
yes this is becoming more and more evident. I don't think the offer is very fair at this time.  I will be having a landowner meeting in Clarion within the next few weeks.
Permalink Reply by don cooper on October 31, 2011 at 6:32am
Will you please post where and when the meeting will be. We have a group here in southern Clarion Co (Toby Two) we recently leased our deep rights to EQT but retained shallow.
Permalink Reply by Ken on November 10, 2011 at 6:40pm

  Any information on that meeting yet?

Permalink Reply by ShaleAdvice (Steven C. Townsend) on November 16, 2011 at 9:26pm

Close to getting a meeting in Clarion.  I recently ran into the same situation in Mercer County.  I was able to renegotiate many of my client's shallow well leases well in advance of any expiration.   I will keep you posted.

Permalink Reply by Mike Stevens on October 31, 2011 at 7:51am

Ed,

I also got a call from Union Land Resources regarding a shallow well lease. The terms/amounts were the same as yours. I have 25 acres in Richland Township and I asked him to send me the documentation to look over. It's been over a week and I have not received anything yet. What township is your property located in?

Permalink Reply by Ed on October 31, 2011 at 12:17pm
  • Ashland--Sample lease was not what he represented.
Permalink Reply by Henry A Troese, Jr on November 3, 2011 at 4:08pm
the Troese-Fryburg group is working with union on a lease and we have them at $575 an acre and 15.5% royalty so far.
Permalink Reply by Mike Stevens on November 17, 2011 at 2:10pm

Has anyone pursued these shallow well lease offers from Union Land Resources? I have an offer from them as well and am curious what the general consensus is?

Permalink Reply by Ed on November 19, 2011 at 11:09am

Mike-- I think we will hold off and see what develops.  Concerned with a barely producing well tying up the land forever.  Would think that a Pugh clause would be critical if you sign.

Permalink Reply by Mike Stevens on November 22, 2011 at 9:30am

Ed, thanks for the reply. That's the way I'm leaning as well, to hold off and see what other opportunities may present themselves.

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