Comment

Comment by Ed Praysner on March 5, 2012 at 4:50pm

I live in New Jersey and have only 4 acres in the Taylor Twnsp part of Lawrence County.  Recently I visited the Shell field office in New Castle.  They took my info, provided me a blank lease for reading and said it would be approx. 3 months before they would have a lease ready for me.  They offered the same as above.  I was told dry gas.  A relative in Pittsburgh said she heard that new tax laws for 2013 would take 55% of the money. Is this so? Since I'm an absentee owner, I need to rely on this website for info, so keep it coming.  Thanks

Comment by Kevin Joseph on February 16, 2012 at 9:58am

From what I have learned is that the northern counties in PA, like yours is predominantly dry gas.

But you should ask them if they plan on drilling into the Utica Shale & search for oil too ?

Comment by Janice L. Hancharick on February 15, 2012 at 11:19am

You will be "close to a deal" for a very long time unless you and neighbors are willing to give away much more than you need to.  Mentioning the $$$ and % is a very small part of a lease deal, but the companies will keep your focus on that purposely.  It keeps you away from all the clauses, addendums, benefits, and environmental issues that are buried deeper in the lease document ... ones that will "keep you buried literally!"

If you're trying to "work a deal" on your own ... figure these companies have banks of lawyers who've been in this business throughout the world for a very long time.  Anyone you know up to speed on lease negotiations on this level?  I coordinate the 4-County Group east of you so I can't invite you into our organization even though I'd very much like to.  We have a successful and experienced firm representing us that has dealt successfully with energy concerns for Fortune 500 companies, institutions, gov't agencies, and YES ... landowner groups.  They don't get paid unless we get paid, charge nothing on the royalty, and 6% on the bonus.  If that sounds like too much, you're overlooking the expertise they bring to the table.

You're smart to reach out for additional knowledge.  If one doesn't know the value of area resources, how can one know a "good deal"?  Think Shell has geologists + that know everything about your AC already?  You bet.

Keep reaching.  Again I'd like to invite you into the 4-County Group, but you're too far west.  I know your geology is better than ours, so it would be a disservice to you to join us anyways.

Regardless of other responses you get on this, please do yourself a favor and call one of 2 #'s I'm providing.  They can do alot more for you than I can. 412.400.6211  or 724.766.2924  At this stage of pre-leasing, information gathering is the best thing you can do.  As long as Shell and others are keeping you dangling they can hold on to their $$$,  wear you down, and if they're lucky slip an industry-friendly lease into your pocket.