Replies to This Discussion

Permalink Reply by richard campbell on February 27, 2012 at 2:02pm

well i signed with mason dix...also...i can say i have contact of a landman if you are interested...

i have heard all different prices...i do not understand the on surface lease...as for me i hope they would put a well on my property....

your property is not not big so i do not think any thing would happen on your property...

well troubles me is you are paying an atty...and still do not have all the answers...

 

 

 

Permalink Reply by Studer on February 28, 2012 at 2:11pm

Haven't paid the attorney a dime yet. But so far he hasn't given me any advice either.  I'm waiting to hear from him after he reviews the lease proposal. I've been contacted by two different landmen from M&D. The first passed me off after a week to the 2nd. He seems pretty pushy about getting me to sign, then turns around and says he doesn't need me and will go ahead without mine.   ????   My property is too small and oddly laid out, so I don't want to lose any land to a well or storage. 

Permalink Reply by richard campbell on February 27, 2012 at 2:06pm

i am sure you must have some neighbors that have received leases...ask around...what price did they get...?    also you did not mention the % ( oercent ) of royalities....thats very important..

 

Permalink Reply by Elwood Woolman on February 27, 2012 at 3:51pm

Part of the problem here is that most all the property is already leased and in production. That means there has been no offers for leasing. So it is hard to gain any info from neighbors. There just is not any. Other than the fact that the landmen are trying to increase acreage on old leases - they are just going to drill where they want.  They are welcome to move north 2 miles and drill on my farm ! 

Permalink Reply by richard campbell on February 27, 2012 at 6:12pm

ya lots of old leases...of which i know nothing about...as for the future..i believe once the infrastructure is well in place..pipe mill in full operation..the rate of drilling will pick up...esp...if its oil there are seeking...

do they drill vertical also seeking oil..or only hor...

 

Permalink Reply by Studer on February 28, 2012 at 2:16pm

Oh. There was a % stated, but I left the lease at my office and don't remember what it was. I believe the % wasn't bad, it was close to what my daughter got in Columbiana Cty and their group thought they did well.  I have gone to the two big parcels south and northeast of me, and both said they haven't been contacted at all.  But they both already have producing wells.  As do the farms due north and due east of me.  I don't know about due west across the railroad track; don't even know who to approach to find out on that land. 

Permalink Reply by Studer on March 2, 2012 at 8:11am

16% is the royalty offer, but the signing amount is too low.  My attorney advised that my acreage is too small to worry about a "pugh clause"  (no, I don't understand what that means) but that I should ask for a limit on the unitization, because that affects your percentage payment.  The two large properties to either side of me (57 and 80 acres) said they haven't been approached.  And one of them owns the shallow wells that the MD landman told me was going to be their new site soon by me.  Just makes me more confused.

Permalink Reply by 0i7okn54zwbdo on February 27, 2012 at 6:25pm

Chesapeake will no accept any no surface use leases over 10 acres. It sounds like you should be able to get one based on your property size. $3,500 isn't a great price, but you have little bargaining power. Mahoning County just isn't as valuable as Columbiana or Carroll counties. I don't have the time to get into the geology or the pipeline issues, but let your attorney deal with the landman. If you could use the money then go ahead and sign up. If you want to wait and see what happens and you can afford to be picky them sit back and watch.

Permalink Reply by richard campbell on February 27, 2012 at 6:34pm

o i have heard prices in south west mahoning co..i heard over 5,000.ac..

Permalink Reply by Calla on February 28, 2012 at 2:55am

Ruth,

I have looked at the map of your property. It's triangle shaped, and has the railroad tracks running along it. I have compared your location with Jarvis, Jems, Martig, and Hutcheson property. Those are the only permits that I know of near you. None of them are close enough, or at the right angle to have any affect on your property. I don't see any wells that would be in a pressing hurry to sign you.  That leads me to believe that the land man is trying to bully you into signing so he can flip your lease at a later date.

I wouldn't sign for anything less than $5800 per acre, and 20% gross royalty. The precedent has been set.

 

In other news.... I talked to a man on Calla Rd. near Duckcreek. Chesapeake wants to run a gas line through his property, all the way down to the transfer line that is close to route 45. He didn't give details on what they are offering.

 

It also looks like CNX has finally worked out its road problems with the County engineer. I say that because they are offering to buy water from a neighbor on Western Reserve Rd. They will eventually need that water to frac the Hendricks well in Ellsworth Township.

Permalink Reply by Studer on February 28, 2012 at 2:27pm

THANK YOU, Calla!! It is very helpful to hear some direct response to what I'm trying to figure out. Yes, I am the little triangle.  Because my property is small and oddly situated I don't want to lose any land, trees or anything to roads, drilling or storage tanks. And I don't see why they would need to do anything inside my little  patch of land.  But he said they WILL be pulling gas from underneath me whether I sign or not. 

He mentioned "Votaw well" (sp?) and said it was east of Beloit-Snodes, north of Middletown.   I found nothing like that on the Utica list on the ODNR website.  Where do you find your maps?  And I still wish I knew what was going on across the street... the hoe hasn't done anything all week since it cleared the trees but it's still setting there.

Permalink Reply by Studer on February 28, 2012 at 2:18pm

THANK YOU Marcus Grayson! At least this is a direct piece of advice.

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