Leases Offered in Noble County

I'm new to "gomarcellusshale", as well as new to this business.  We have a 152 acre farm with "Clinton" gas wells which supply our needs.

We've been approached by Fossil Creek Energy Corp (FCEC) for $50/acre, 12.5% Royalty, and $10,000 if a well is drilled.  We are sitting on the Utica Strata.  I've carefully read the lease and am very suspicious of the terms.  We are consulting attorneys.  I don't see any members from Noble County..and some interesting notes from Guernsey which lead me to suspect the FCEC lease.  Can they broker a lease after signing "cheap"?

We have news of ARTEX Oil offering leases in our County, they're out of Marietta.  Any comment on FCEC, ARTEX, and my suspicions would be welcomed!

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Replies to This Discussion

Permalink Reply by RobertS on September 23, 2011 at 1:47pm

Is there a list with contact info of the companies leasing in the area, on this site?

 

I've only talked to Eclipse and Chesapeake. Chesapeake says they are not leasing in Noble Co.

 

Permalink Reply by Christiane Marshall on September 26, 2011 at 8:11am
If you're in Noble County and you haven't signed a lease yet, you owe it to yourself to at least check out the KWGD group. A new package goes out to bid possibly on Wednesday. If you want in, now's your chance, but you need to let them know ASAP. Not sure if I should insert their contact info here. If it's okay and you know it, please reply with the info. Otherwise, message me and I'll send it to you.
09bp5t05myjl3Permalink Reply by 09bp5t05myjl3 on September 26, 2011 at 11:07am
What happened to the last KWGD Noble county group, There were an awful lot if angry members on here that couldn't discuss due to the confidentiality agreement????? Doesn't sound like a group I want anything to do with!! No Thank You!
Permalink Reply by Christiane Marshall on September 26, 2011 at 4:02pm
Tom, Although people were angry, the lawyers listened to what everyone wanted and made swift changes! They listen! It's a great opportunity for anyone who wants to get on board now!
09bp5t05myjl3Permalink Reply by 09bp5t05myjl3 on September 26, 2011 at 1:25pm
What is the fee
Permalink Reply by sawtooth on September 26, 2011 at 1:34pm

Hello Tom,

 

The fee is a 1 time payment of 5% for your total signing bonus.  So if you receive 100,000 then they get paid $5,000.  From what i understand the last groups fees were paid by Chesapeake which is probably what will happen here again.  The law firm does not touch your royalty payment.

Permalink Reply by Christiane Marshall on September 26, 2011 at 4:00pm
Yes, and there's a possibility it will go out to bid Wednesday. They said if they have strong verbal agreements by phone before they send it out, they will include you in the group. I think at that point, it would put sending the package out until they have your paperwork, etc. If anyone is interested, call ASAP if you want in!
Permalink Reply by Judy Woodard on September 27, 2011 at 1:04pm
What is your group leaders rationale for confidentiality? Isn't it to everyone's advantage, including the leaders who will get more in payments, to represent as many landowners and as many acres as possible? That's what our group is based on--the more the merrier-take this info to as many people and you can and get them to come to the next meeting! The more land they pull together to offer the drillers, the more leverage in negotiating because they want to put blocks together to put wells on. The only person to whom confidentiality would be useful is the leader who thinks that if you tell others what terms you're going for, he's afraid you'll find out others are getting more and leave his group. In other words, with confidentiality, you'll probably get less. Open meetings have always meant you can't hide things-regardless of what kind of group it is.
Permalink Reply by Nelson Roe on September 27, 2011 at 5:18pm

A lot of things are easier to say than act upon.  In any group, there will probably be some individuals that will be disappointed for one reason or another.  I guess what I am trying to say is that the group ideology is great, but when it comes down to it, the big boys will only negotiate so far regardless of who you have representing you.  They will tolerate some changes & negotiations, but if you push to hard, they have the opportunity to push back & their pushback could leave you setting high & dry.  Not saying point blank that it WILL, but it very easily could.

As far as the rationale for confidentiality... Have you ever played poker before?  If you want to win the pot, do you let the other players at the table know what you are holding in your hand?  I think not...  Same rationale applies here. 

Another point of discussion here is a major difference in group strategy.  You stated that "The only person to whom confidentiality would be useful is the leader who thinks that if you tell others what terms you're going for, he's afraid you'll find out others are getting more and leave his group."  With the group that I believe you are a part of... You do not have this option to leave.  You are locked in for a year with that group.  So, I can see where confidentiality may not be as large of an issue if you are under a binding contract to allow said company the exclusive rights to negotiate for you for a year & you do not have the option to look elsewhere.  Whereas the other group that seems to be a major discussion point on this thread does not bind you to them.  If an individual does not agree with the way the negotiations are heading, they are free to walk at any point up until they sign the lease.

Permalink Reply by DON B on September 26, 2011 at 4:42pm
It's my opinion the Kwgd bid package would have been accepted
Permalink Reply by DON B on September 26, 2011 at 5:05pm
It is my opinion the kwgd bid package would have been accepted the first try, except the contract was actually too landowner friendly for most of the larger drillers, and the deal for the group was to be that the Oil co. must accept all of the landowners who were signed up with Kwgd. They have since added more acerage and are preparing another bid to send out to more drillers. They have drawn up a superior contract and it would be beneficial to making a deal if more owners signed up with them. If you sign with them, you are not signing a lease, but simply a negotiating aggreement and can back out whenever you want until a deal is accepted and signed.
Permalink Reply by Lane Mitchell on September 27, 2011 at 2:06am
This is true, you can back out whenever you want.  I did, last Thursday, and so did others in Noble County.  Must have been more sign on in Noble County.  The last I knew Noble and Monroe was together in their acreage.  This must have all changed based on the posts here... unless someone isn't telling all... Good luck to all those invovled. 

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