My family has mineral rights in Potter County, PA, West Branch Township and I'm researching the fair market pricing for leases in that area.

My family has mineral rights in Potter County, PA, West Branch Township and I'm researching the fair market pricing for leases in that area.  After paying a very modest price for the first 5 year lease the company has substatially upped the price after we pushed back a little bit.  I'd really like to know what others are getting per acre, how long their leases are, if they're getting a percentage of the output, etc.

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So, all that said, is anyone willing to share with me a number, a number range or even an opinion as to what is fair market pricing per acre for leasing the mineral rights?  We're not looking to join a group of landowners, we'd like to remain as a single entity.  All I'm looking for is an educated opinion.
Hows about 4500/acre sound.  Thats an offer thats on our table now.  Last year the O&Gs were talking 1500/acre.  If anyone else has any info keep the the thread going.  My only suggestion is to keep your options open..many offers come with baggage like marketing fees etc.  So be wary and negotiate a fair deal.  Good luck!

4500 in Potter sounds pretty good.  Sounds like one of the big boys is presenting some nice offers.  Good for you.

JB

Hi Mike,

 

did you end up signing a lease?  I am curious as to the process.  We own a good chunk in Potter, Mckean and are trying to understand the process and how we can market our land. 

 

Thank you for all of your help.

 Things have a way of slipping off tables, Mike.  Did $4500 AC turn out to be the done deal price?  Where in Potter/McKean did this happen, and what company?  What were the particulars providing benefits and environmental safeguards ... reclamation clauses?  How long is this lease for?  What shale formations were named?

Your responses will keep the competition keen, and that's what we all want.

Hi Mark, 

 

Did you ever find any information out about this?  Interested to know... 

 

Thanks



I don't believe that reply came from a Potter source.  We all hear such #'s, but in Potter (the "Ford" of the Marcellus shale layer) that's just not happening unless all rights to China are given up, and no protections/few benefits are  provided.  Realistically both the Marcellus and Utica shales are included in lease agreements nowadays.  Fortunately 4-County's shale on the PA side is 300' - 400' thick.  Now THAT's SHALE!  That's why our bidding BEGINS @ $3,000 w/17% royalty, and we have many Preferred Terms that fit our region specifically.  A portion of Southern Potter even goes to 500' thick in the Utica.  Our existing and expanding pipelines, proximity to water sources,etc. means our Group is in good shape for a great deal.  Last public meeting is advertised on Solomon's Word, and in the Leader.

Janice,


How long has 4-County been a group and what leases has the group ever signed?  The bid can be set at any price but if no companies are doing business with 4-county, does it matter?

 

K

"K", I am sorry this response has been so long in coming.  I just saw it!  Shame on me.  Please slip over to the McKean site on GMS.  That will bring you up to speed as quickly as anything.    HISTORY:        4-County has been a group since 2008 ... a few months before the economy collapsed.  The latter shot our early offers off into space never to be seen again.  The individual representing us @ the time was in no way responsible for Wall Street's collapse, but it surely took the wind out of our sails.  We have grown in AC (& smarts) since then.  However, 4-County was a moonlighting job for the fellow "leading" us, and the action became like driving a parked car.  We were going no where. By 2010 he stopped returning calls, making contacts ... simply fell off the radar.  He had come highly recommended, but the Group had grown too large to be anyone's moonlighting job.  I spent $$$ and a great deal of time searching for and then researching a FIRM that was knowledgable, had a major foot-hold in the energy world, and was successful in marketing and negotiating on a higher level than anything we were accustomed to. 

Please slip over to McKean County's site and read the comments.  If you still have questions, please attend the Smethport meeting  advertised on the  Solomon's Word news blog, and in local papers.  If you can't make it on Jan. 17, join us Feb. 21, 6:30PM,  COUDERSPORT Fire Hall,  Rte. 6W

My family owns a small spot of land in Potter County near the Whitney Creek/Hebron area. We are across the road from State Gameland. I haven't heard anything lately about what is going on up there with the Marcellus Shale Project. Any information would be helpful to me. Are they in or have they been to that area as of now...January 2012 or did I miss it all? I would appreciate any information that can be provided.

 

Thank You,

[email protected]

The 4-County Group has been very active in amassing acreage, holding public and private meetings to keep everyone informed on "the Latest" on all things Marcellus/Utica as they pertain to our area.  The truck traffic, # of people involved in the industry or related fields, service jobs, have all increased throughout this region.  It's been a real boon, and this is only the beginning.

The Group will soon be going to bid.  If you wish to learn more we're having  a meeting in SMETHPORT on Jan. 17th,  6:30PM @ the American Legion on Main St..

Also, Feb. 21st in COUDERSPORT,  6:30 PM @ Fire Hall on Rte. 6W..

Before leaving the GMS site, check out McKean County info for the latest.  It will closely resemble what happening in Potter.

Also, Google   Solomon's Word ... a local  news blog.  All this should help.

Thank You for the info. The problem is I live 6 hours away. It os hard for me to get up there in the winter. I appreciate your help.

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