Updated November 8, 2011
This webpage is a little over a year old. During this time frame oil and gas leasing
offers have increased significantly.
As of November 8, 2011 the signing bonus has increased to $5350-$5800 with the royalty percentage at 20 % gross. Leases are being signed by several companies. The best lease terms are being realized by the landowner groups that offer their acreage through a competitive bidding process. I personally believe the money offers will continue to increase with time. The highest offers occur when landowners pool their land into contiguous units.
Presumably, all are aware that Chesapeake recently leveraged 25% of their leaseholds in
Eastern Ohio for $15,000 per acre by forming a JV with an undisclosed oil major.
Raymond, You found a couple of those "hooks" hiding behind that $4950/ac. and 19% bait I referred to earlier in this discussion! There are many other problems with it also. The biggest has to do with the Pooled Production Unit Limit clause. Hint: one important word is missing. ;-)
If you follow the posts from Pa./Marcellus on the main board, XTO/Exxon is adamant that their royalty is 15% net, and they supposedly won't negotiate that item. I realize this is a different Play and "wet gas/oil vs dry gas, but it is the same company. If the gross is computed after transportation and no tax (severance/ad volerem) addendum your royalty is more like 15 or 16%. Not a true "No Cost" lease for the landowner. A competent O&G attorney should review this lease for other trap doors.
Do not sign until you have a guarantee that the company will sign and pay you in full,regardless of size or location. Basically the only way out,is title failure[non-ownership of minerals]why are people still blinded by money? Sign up or else it will go away, from the time it was $50.00 til today fear tactics should not prevail,but there are still sheep to slaughter!
Unit size too large, another cherry pick has come.
Ask for changes, based on your consultant or attorneys recommendation.
Review-ask questions-review again,proof read with others,look for the misprints or the left out or's and of's,not to mention the left out addendums.
Slow to speak, swift to hear...ask questions again.
Raymond, do you still have your Athens acreage for sale?
I don't think there have been any permits issued recently in Harrison.
As far as local refineries - I heard that Marathon in Canton has come to an agreement with CHK to build a truck offloading unit for oil and wetgas and CHK will deliver by truck and sell them product at a discount.
I recently received information that there is a landowner group that is accepting applications from Harrison County landowners. Terms appear to be $5000 signing bonus with a 18.5% gross royalty. The lease is landowner friendly. The applications need to be completed no later than 4 October. For further information go to:
Have you tried contacting Buckeye Energy or ALOV?
get a hold of JRM
If you Google ALOV it will give you their website with names and contact info.