I'm new to "gomarcellusshale", as well as new to this business. We have a 152 acre farm with "Clinton" gas wells which supply our needs.
We've been approached by Fossil Creek Energy Corp (FCEC) for $50/acre, 12.5% Royalty, and $10,000 if a well is drilled. We are sitting on the Utica Strata. I've carefully read the lease and am very suspicious of the terms. We are consulting attorneys. I don't see any members from Noble County..and some interesting notes from Guernsey which lead me to suspect the FCEC lease. Can they broker a lease after signing "cheap"?
We have news of ARTEX Oil offering leases in our County, they're out of Marietta. Any comment on FCEC, ARTEX, and my suspicions would be welcomed!
I too would like to know who this is. If your being serious please post back and provide us with additional info. Our best offer has been 2600 and 2800 and 17% for our 200+ acres.
O.k. I've not been active on the site for awhile but have been trying to stay in the loop and current with the latest postings.My latest lease in hand is offering $2750 per acre, 17.5 percent of the net at the well head, guarantees payment in 90 days after signing if not lease is null and void, $15,000 well location fee if well is located on the landowners property. All fences and gates will be maintained, all property will be returned to as original condition as is agreed by landowner. All gas lines will be buried below plow depth, All rubbish, debris or surface use will be restored and clean after a 6 month period. All marketable timber will be untouched for a period of 30 days to allow the owner time to market such timber. Lease is designated for surface of the earth to the base of the Queenston shale and top of the Trenton Lime to all depths below in order to access Utica shale.( Intent is for Utica shale only.) Protects any Agriculture activities, quality of well and stream water on entire property. All other minerals are reserved. 5 year primary term lease option for another 5 year period at same rate previously mentioned unless provided another offer that is higher for up front offer and and royalty payments at which time offer may be matched. No storage rights clause, No disposal rights clause are allowed. Company can not use any existing water off of the property. Landowner will receive the sum or equivalent of (300,000 cubic ft of gas if a well is drilled on the property, paid in quarterly installments beginning 12 months after production of gas is obtained. I am willing to share what I have in writing but would want to see some of the other offers that are out there.... What do you guys and gals think? I am not currently in a group.... I have not counter offered. We started with most of the original language being all for the company... I've worked it in addendum's to be a little more landowner friendly.
About the only thing I could not get much movement on was getting % of gross at the well not the net.
I really want to work with these guys and not get too greedy! I am big into Karma and just want a fair win / win situation.
Hey sawtooth, Where are you located? This is a great improvement over the 20 dollars an acre originally offered to me by Belden and Blake, earlier this year. Have you seen any of the brokers or companies change to the gross % at well or are they dug in deep and only allowing the % of the net? Have you signed or still holding out? What specifically is making you wait?
You seem to be somewhat misinformed about how most lease landowner groups operate. In most groups you are free to walk away at any point up until you actually sign a lease. Nobody is dictating what you do on your property (until you have a lease) but they are working together trying to get the best lease available at the time. Most groups are formed to benefit and protect landowners such as yourself. Group members benefit from the diverse range of views of group members which bring different issues and concerns to light. Your neighbor may bring up important issues that never occurred to you. They also benefit because with larger acreage they have more bargaining power when dealing with energy companies and usually get better deals than individuals dealing with the same companies. Group members that network and pay attention and share information stay on the leading edge of what is happening in the industry in their area.