I am one of the Wyoming County land owners that has not signed a gas lease yet. Most of the land owners around me signed with Chesapeake under the Wyoming County Land Owners Associaton late last year. I have been talking to Chesapeake recently and they are now only offering $3,750 per acre with a 20% royalty. I told them I needed at least the $5,750 that Chesapeake gave the land owners group and he said they made a big mistake and never should have signed that contract. I have decided to wait for a better offer. Has anyone else had any recent offers from Chesapeake?
You must be in a "better" part of Wyoming County than I am. The last time I spoke to Chesapeake they told me flat out "not interested in your area at this time".
I have heard that they screwed up offering that deal, but they are full of bull. They will and do sell off any leases they don't want for many times the amount they paid, and continue to do so.
Depending where you are that offer isn't bad. Of course you better make sure you get the right lease terms too, as that is as important or even more important than the upfront money.
Have you called an experienced O&G lawyer for a consultation? I would in your situation. They can help with the terms and get more money in many cases.
Because the companies have SO much land leased already, and the pipelines and infrastructure are not in yet, they have no reason to pay high prices for MORE land yet. If you need the money soon it may be a good idea to make the best of what is out there. Call Chief and Cabot too, and anyone else who has leased in the area. It doesn't HAVE to be Chesapeake. They work together if and when drilling time comes.
This is a crap shoot for some areas, you have to face that. NOT EVERYONE will have gas and not everyone will even get a lease offer. Get some help to figure out where you stand before you make any decisions.
Some real good advise. I have always planned on taking any contract, I am serious about, to a lawyer, but I always thought that would be a second step. Getting an offer I would accept seemed to be the first. If they can help me with the negotiating maybe I should contact someone now. You have given me something to think about. Thanks.
I also did not sign up. I did recently join the Dick landowners group. I'm an out of town landowner and can not devote enough time to negotiating a lease. The lease contract is key. More than if they are offering 3750 or 13,750. I strongly recomend signing up with a group of some sort. Power in numbers. For some reason Chesapeake has not made any offers to me on my property. I never got the notice, As a result I never knew about the original Wyoming County Land Owners group. If 5750 was a mistake, why did they sign a deal last week for the park land at that price?
I was not aware of the the park land deal. Thanks for sharing. That makes me even more determined to wait for a better offer. I agree that the contract is very important but getting into the details is, in my mind, the next step after receiving an offer I am willing to accept. I am also aware that I will need to talk to a G and O attorney before signing any kind of a contract. Joining a group is probably a way to share some of the expenses such as lawyers. I am going to consider doing that. Thanks for sharing your thoughts. The landowners need to communicate with each other.
Don't know what area you are in, but if you are close to Lemon, Nicholson, Hop Bottom or just west of that you should be in a good position to negotiate. At least that was the word from Chesapeake not long ago.
Certain areas are too close to geological "problems" and won't be interesting to the gas companies until much later. There are multiple resources to read on this that would give you some indication of where you stand.
Or, the best way is to watch what the companies are doing.
Check the permit database and see where they are drilling near you. Check the landex county records (oops - wyoming co not on there yet) to see leases and other documents. Always talk to people around you and get the scoop on what they know.
Good luck to everyone in any case.
James, you mentioned the original Wyoming County land owners groups, but actually there was a group of us who signed prior to that group. We signed 6000 acres which includes the well in Vernon, for a whopping $45 an acre. A year later the WCLO group signed for $5750. Our lease is for five years. Anyone else out there in that "original original $45 group?
JIM=ANY ACTION FROM THE DICK GROUP ON YOUR PROPERTY? MY WIFE AND I WENT TO THE SAME MEETING AS YOU DID BUT DECIDED NOT TO JOIN...THOUGHT THE FEE PERCENTAGE WAS TOO HIGH. WE GOT IN WITH NEPALA ASSOC. IN MAY..NOTHING HAPPENING WITH THEM YET EITHER. I FEEL THAT THEREE IS A GOOD POSSIBILITY THAT OTHER COMPANIES WILL GO FOR THE REMAINING ACREAGE IN WYOMING CTY SOON, AND FOR BETTER PRICES THAN WHAT THE WCG GOT. (WISHFUL THINKING??). LET ME KNOW WHAT IS GOING ON WITH YOUR GROUP. THANKS....RICH KIMBLE
Dick Landowners is a private company that represents owners from all over the state. I agree that they charge a commision and that you should read carefully before joining. They made sense to me since I am an out of state owner and it's difficult for me to do this on my own.
Oh, they will offer more. Be patient and don't believe a word they say. $5750 is last year's offer. August thru October is when the leasing heats up. While you are being patient, you are earning money. Read this article from the Philly paper and see for yourself...they did not make a mistake!
Excellent find, Jack.
A lot of us landowners have become aware of the other layers and some have leased exclusively for some and not others in expectation of this.
In addition, it shows that even if your location may not be prime marcellus, all is not lost.
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 ]