Replies to This Discussion

Permalink Reply by Billy Bob Meeker on July 4, 2011 at 12:05pm

Three pieces of advice ...

1)  Don't be in a hurry to sign with anyone.  In Harrison Co., OH, two years ago when the offers began, they were at $250/ac and 15%.  Now, the offers are $2,250/ac and 15% (and in some instances 17%).  There are a lot of sad people in Harrison Co. that jumped on the early offers.

2)  Try to form a landowner's group and get as many folks to join as  possible.  Bigger combined chunks of land are more attractive to drillers than individual small parcels so you will be able to increase your negotiation strength somewhat.  Although, in the end, the drillers hold most of the cards.

3)  Make sure you understand the terms of the contract.  If you live on or farm the land, a contract with friendly landowner terms may be more valuable to you than the bonus dollars being offered.

Permalink Reply by Angela Smith on July 6, 2011 at 3:46am

Who is PDC?  I am also a landowner in Washington County.  We have been following the activity for several months.  We were advised by our attorney to wait 12-18 months before signing.  There is drilling activity in our area but no production numbers yet. 

Permalink Reply by Matt Kiggans on July 6, 2011 at 5:34am

This was posted by Tim N. on the morgan county sub forum.

Comment by Tim N. on June 23, 2011 at 11:34am
"Gary, PDC is a "moderatly" active driller in the Marcellus currently. They keep one rig drilling fulltime, turning out quite a few Marcellus horizontals/year. The bulk of their Marcellus activity is presently in the Clarksburg, WV area where they are making very good Marcellus wells. PDC is a small, independent OG operator who probably can't afford the big lease bonus's that the CHK's of the world can offer. However, I would venture to say that any acerage they would obtain would be more valuable (more likely to be drilled) than most of the big boys. I'm interested to know if PDC has already picked up addtional leases in your area? Another thought that comes to mind, is there any large transmission pipelines in your immediate area?"

I know they are based in Denver. They also have an office in bridgeport WV. Western land services is doing their lease work. Have you had any offers?

Permalink Reply by DrillBABY on July 11, 2011 at 7:25am

Hey Matt, what part of Washington County are you in? I would also like to see a Washington County sub forum. I also live and have a farm in western Washington County between Barlow and Waterford. PDC has also been in our area offering similar leases. However, I attended a landowners meeting in Waterford 2 weeks ago where a broker supposedly representing Devon Energy was offering $1250/acre to landowners in Adams and Waterford townships. I believe the majority of the landowners present were signing up for $1250/acre, atleast that's the impression I got talking to various landowners. I walked away impressed at the amount they were offering for an initial offer. 

Permalink Reply by Cavalry25 on July 11, 2011 at 9:15am

I also have land in Washington County and recently received an offer for $1250 for 5 years with the following 5 years option for $1500.  15% on the royalties.  Wishgard.  Anyone else working with Wishgard or an outfit with a solid reputation and good lease agreement?  Seems like the Wishgard leases are pretty solid.

Permalink Reply by Angela Smith on July 11, 2011 at 11:31am

I attended a Wishgard meeting in Monroe Co. and the numbers were higher.  Their "offer" is for you to agree to allow them to market your mineral rights at the specified price.  It isn't a guarantee that you will actually receive those terms (at least that was the way it was presented to me).  I think Wash. Co. is at the beginning stages of this process and prices are likely to go higher.

Permalink Reply by DrillBABY on July 12, 2011 at 3:48am

Angela you described it the accurate way. The offer is simply an agreement to market your minerals at the agreed rate in a specified amount of time, I saw a very similar agreement.

Permalink Reply by Peg on October 18, 2011 at 12:50pm

Meeting tomorrow evening at Barlow Fire Dept.With proper representation .Attorney,Landsmen,Petro Engineer and geologist.Much better orgnaized and offers are much better.Wishguard offered $1,000 and acre and the Waterford reps were offered 3xs this amount .Beware of out of towner landsmen.

Meeting Oct 19,2011 @ 6:30pm

Permalink Reply by Matt Kiggans on July 11, 2011 at 12:07pm

Hi Tim, I live in lawrence township,12 miles north of Marietta on St. rt. 26.  There is a nice block of unleased land here and im trying to get everyone on board to hold out for a while. Hoping someone starts a Washington county landowner group soon.

Permalink Reply by Angela Smith on July 11, 2011 at 1:14pm

There is a group forming - Southeast Ohio Landowners Assoc.  330-328-5944.

Permalink Reply by Matt Kiggans on July 11, 2011 at 12:13pm

Angela, How high was the "offer" ?  Washington county is definitely just getting started. I don't see myself signing anything until next year. I think we will be seeing $2k an acre before too long.

Permalink Reply by Angela Smith on July 11, 2011 at 1:19pm

I agree.  The offer was $1,600/5 yr./15% gross.  See reply to Matt for another land group possibility. 

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