Replies to This Discussion

Permalink Reply by Jeremy on August 25, 2010 at 3:00pm

Hello Frank,

Check the following two forums on this website:

1. http://gomarcellusshale.com/group/ohio/forum/topics/lease-offers-in...

2.http://gomarcellusshale.com/forum/topics/60-an-acre-columbiana-county

You can find the first one under the discussion forums for ohio landowners and you can find the second under "Shale Forum" then "Activity in the Marcellus".

These two discussions will provide a lot of good information to you. One word of caution: Don't sign too quickly or too cheap. It is always possible that a delay in signing could mean you miss out completely, but signing too quickly could mean you sign for a small fraction of what you could have received. Last year we signed in WV for $700/acre (I thought this was good because the surrounding properties were all getting $150/acre or less) but now the same area is getting around $3,000/acre per reports from some others I have communicated with. I thought I was somewhat informed at that time thus getting a much greater amount than my neighbors but obviously the gas leasing company made out on me as well. I'm not bashing the gas leasing company as it was my decision to sign and at the time I was smiling ear to ear. I'm just saying make sure you are well informed and you sign for an amount you will be happy with even if leases go considerably higher. I wish I had held out longer, but then again greed can sometimes get you nothing in the end too. Best of luck to you however you proceed!
Jeremy

Permalink Reply by Frank De Fede on August 25, 2010 at 3:03pm

thank you Jeremy for sharing! I will check it out.

Permalink Reply by Al Cramblett on August 27, 2010 at 10:12am

Frank,

The main player in Harrison County seems to be Kenyon Energy. They are currently offering $1000 an acre as a one time bonus with a 1/8 royalty for a five-year lease with option for a second five-year term. If you want to pursue this you could call Kelly at 740-802-0818. You should note that their lease is very unfriendly towards the landowner. However, if you'd like to take $28,000 and run, go for it and good luck.

Al

Permalink Reply by Frank De Fede on August 28, 2010 at 6:58am

Thank you Al, for the information. I have some friends who are going through Chesapeake and they are working with an attorney only getting $600, with a 12%. royalty I'll give Kelly a call.

Thanks

Permalink Reply by Al Cramblett on August 28, 2010 at 9:15am

Frank,

The more we share information the better off the landowners will be. It is interesting to me that Chesapeake Energy is only offering $600 per acre, the reason being is that Kenyan is negotiating leases on behalf of Chesapeake Energy. May I ask how many acres are included in the group being negotiated by their attorney? Also, what is the name of that attorney? I have 400 acres that I may want to add to the pot.

If one has a lot of acreage, the most important factor involved is or will be the royalty amount. At this point I'm having fun negotiating with the Landman but am not even close to signing.

Landlords in Harrison County need to share more information. In that regard, I have requested the site administrator to set up a Harrison County section for us. Hopefully that will be happening within the next couple of days.

Permalink Reply by Frank De Fede on August 28, 2010 at 9:50am

I think they only have about 10 or 11 acres pulled together with Father and son. The attorney is Larry Pierkalini (spelling ?). I am told the he is a main contact.

I am not sure if I have the gas and oil rights. According to my deed, it says that someone else has the coal and mining rights. My niece works for attorneys in Morgantown, WV who specialize in land rights. She does research everyday on this kind of thing. She says that coal and mining rights are different than the gas and oil rights and she seems to be sure that I would still the gas and oil rights. Do you have information on that.

Permalink Reply by Al Cramblett on August 28, 2010 at 10:10am

Frank,

If my land were in the 10 acre range, I'd be inclined to take the $10,000 and run. In regard to your question about mineral rights, I personally wouldn't worry about it. If you sign a lease, the Landman will then do a title search. If you own the mineral rights, you will be getting a check. If you do not own the mineral rights, the Landman will tell you the lease is null and void. (PS-I am not an attorney and am not giving legal advice)

Permalink Reply by Billy Bob Meeker on September 6, 2010 at 10:43am

In Harrison County, Stock Township, there is a group of landowners that have banded together to form a single block of land for the purpose of negotiation (possibly up to 5,000 acres ... not necessarily contiguous property). Reportedly, they have received an offer of $1300/ac and 15% royalty with fairly landowner-friendly terms in the contract. I believe they are working through an attorney that is negotiating for them.

Suggest that you do some investigation as to how this group is set up and see if you can get into a similar group to achieve more clout.

Permalink Reply by James Milleson on September 8, 2010 at 11:34am

I have been on the phone almost constantly in the last 3 weeks with landowners. The geological results determine the cash outlay. The investments made are long term, the lease language almost always favors those who prepare it, slow down-but don't bury your head in the sand.
I personally am looking 20 to 25 years down the road, God willing we all will still be here. What are the effects both positive and negitive--roads, bridges, water, transmission and/or pipeline right of ways, timber-the overall economic impact-the social impact. We need to be responsible.

Permalink Reply by Richard Clark on September 8, 2010 at 1:23pm

Do you know if there is a difference in bonus money if you only have 5ac as compared to 105ac? Most of the time I see quotes of what compaines are paying per ac bonus money but seldom do they say for how many ac.

Permalink Reply by Nate on November 19, 2010 at 12:46pm

CHK is offering the same or more. Just deal with them and cut Wellington out. They are only looking to flip your lease and take a cut out of you for the privilege.

Permalink Reply by Al Cramblett on September 6, 2010 at 1:08pm

A Harrison County Ohio Group has been established. I suggest that comments regarding Harrison County also be posted on the Harrison County Ohio Group's web page. Thanks, Al

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