Replies to This Discussion

Permalink Reply by sawtooth on August 22, 2011 at 9:51am

Kevin,

 

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.  

 

Thanks

Permalink Reply by Mark Curry on August 22, 2011 at 9:55am

Offered? Signed yet or been paid? Haven't heard numbers like that..who's the offeror? Sounds a bit too good from what we've been hearing!

Permalink Reply by George Smolinski on August 29, 2011 at 2:35pm

Mark see my post and feel free to contact me.

Permalink Reply by George Smolinski on August 29, 2011 at 2:07pm

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.

 

 

Permalink Reply by sawtooth on August 29, 2011 at 2:15pm

who is the broker or oil company?  We are seeing around 2500-2800 in our area and 16-17.5% net

Permalink Reply by George Smolinski on August 29, 2011 at 2:29pm

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?

 

 

Permalink Reply by Jon Henderson on August 29, 2011 at 2:38pm

Hey guys I'm in Guernsey, but we are seeing gross %. I would not take net, have been hearing of many deductions against that. I am in a large group here, but we are getting gross. Our lease is out for bids right now, so I'm not sure what we will get for the bonus or the royalty %. Will let you know when we can.

Permalink Reply by George Smolinski on August 29, 2011 at 2:43pm

Thank you John, I have been hesitant to join a group only because I do not like others dictating what I do on my property. Just a personal preference... Please stay in contact as all of us are learning and moving forward. Anything else I mentioned look likes it needs improved on?

Permalink Reply by Finnbear on August 29, 2011 at 3:04pm

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.

Finnbear

Permalink Reply by scott peterson on August 29, 2011 at 11:46pm

Very true!

Permalink Reply by George Smolinski on August 30, 2011 at 1:59pm

Hey Finnbear, Hope all is well. I do not believe I am misinformed.  I considered joining KWGD group however when a group hides behind a confidentiality clause it raises red flags for me personally. I am not trying to bad mouth or bash the group, but felt rushed or pushed to meet a deadline date of August 24th that did not provide me ample time to research and feel comfortable with rushing to sign up. I was provided no sample lease of what the group was considering, so other than EPA articles, and a power point presentation,  I had a very unclear picture of what the legal team had put together for the group, up to the point prior to closing the group. No mention was made of how many land owners were from what county, No mention of what terms the group had agreed to as the focal point of the lease. My impression was that without a sample lease or even a idea of what they negotiated for previously, I can approach the various companies myself, let my personal attorney check out the various contracts and inform me what the top three contracts are and why they are in the top three and let me make the final decision for myself on who to sign with.

Permalink Reply by Jon Henderson on August 30, 2011 at 2:16pm

George I understand that, but maybe you would have had a different opinion if you had been to one of the earlier meetings. I did not feel at all rushed, and I have seen no other lease that comes anywhere near as complete and landowner friendly as this group. I feel there is no way I could have gooten an oil company to give me a lease as friendly as this. We will let you know how it all turns out. But Gross is definitely the way to go.

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