Replies to This Discussion

Permalink Reply by Kristie on August 19, 2011 at 12:54am

someone had given me a contact for CHK a while ago by the name of Chase 814-720-4252 but I do not know if it is correct.

Permalink Reply by AT on August 19, 2011 at 12:59am

Thank you William

Permalink Reply by Enzo on September 15, 2011 at 6:47am

William do you have Exxon's number?  Please send to rsi1943@yahoo.com

 

Thanks!

Permalink Reply by John & Paula Bostrom on August 28, 2011 at 11:56am

We have been offered $3500.00/17.5 per acre for our little 2 acre plot by CHK. We have not signed with a group yet. We are right next to the Dominion pipeline so maybe that makes it more interesting. We are in Franklin Twp.

Permalink Reply by Jim Harber on August 29, 2011 at 3:23am

The rule of thumb is the closer that you are to a pipeline the higher the lease bonus and royalty will Always be. That is a great offer on just 2 acres, that means that they really want it, pretty bad. You are still in the drivers seat, since you are right next to that pipeline. If you wanted more $$, by next Spring prices should easily be up to another thousand a acre with royalty to 20%., but all in all that is a good offer.

Permalink Reply by Peter Schueler on August 29, 2011 at 4:52am

One concern for a lease location near a pipeline will be the potential for a compressor or other gathering/separating surface equipment. If you don't want any surface installations on your property the lease should clearly have that provision.

Permalink Reply by FXEF on August 29, 2011 at 6:38am

John & Paula,

 

The O&G companies usually have the boundaries of the drilling unit defined, and lease land to fill the unit. It is common practice to lease the larger tracts first, then later come back and fill in the smaller tracts, sometimes with a higher bonus to entice the owner to lease, therefore eliminating a hole in the unit. This method of leasing is common to areas with small tracts, as apposed to rural areas with mostly large land tracts where the O&G company may lease a large land block, then draw the the unit lines. There is not much way to second guess the O&G company. At any rate with only a 2 acre tract, it would be advisable to include a "no surface activity" clause to the lease. 

 

Permalink Reply by Shower Bath on September 7, 2011 at 9:13am

I had a call from a young landman from Kenyon Resources (leasing for Chesapeak) today. His offer was for $3,800 signing bonus and 18% royalty with a market enhancement clause. I told him that his offer was not compelling, and I wished him well.

Randy

Permalink Reply by Kristie on September 7, 2011 at 12:45pm

gotta love it! It does pay to stay informed especially when you can play

 with the big dogs!

 

Permalink Reply by Al Cramblett on September 7, 2011 at 4:19pm

Good for you Randy!

Permalink Reply by Josh on September 9, 2011 at 3:58am

We may have reached an apex or close to it with lease offers and terms, I would hate for anyone to miss out on a good deal.  At some point the pendulum is going to swing the other way...

Permalink Reply by Jim Harber on September 9, 2011 at 6:29pm

Maybe and maybe not Josh, since my predictions have come true as I stated over a year ago, if you remember. I was told today that there were offers in Jefferson County for $4,000. plus per acre. You may have forgotten that Eastern OH is sitting on top of the Utica Shale which is at least 5 times more valuable than the Marcellus Shale. You as a Landowner have to decide what is fair for you, then go with it, so if $4,000. is your number that's fine, sign up, just make sure you get some good addendum's into your lease.

Did you know it was close to 4 years before those kind of prices were paid in Northern PA in the heart of the Marcellus Shale play? Doesn't it seem odd that right now, less than 2 years after leasing got going in Harrison County, that lease offers have spiked into the $4,000. price range?

 

I've heard some say that Chesapeake is moving out of the area, don't you believe it, not yet. Even if it were so, and it is not, well there are a half dozen or more other drillers coming into the area.

 

The key has always been and always will be, is getting a good royalty percentage, because when everything is said and done at the end of the day, that royalty check will be in your P O Box once a month every month for the next 40-50 years. Now that is what I call security, and something that will change your life, your children lives and leave a family legacy. That is the key here, or should be right?

• ‹ Previous
• 1
• …
• 33
• 34
• 35
• 36
• 37
• …
• 39
• Next ›
• Page