Replies to This Discussion

Permalink Reply by craig on April 28, 2012 at 5:16pm

How many acres do you have?

If you have a fair amount of acreage I can see their position on the no surface activity, no pipeline clause could be a game changer depending upon the gathering system they need to build,extension clause they won't change, I'm pretty sure. You do need to stand your ground, especially if you have a good number of acres. If you have a  small parcel then you have less clout. At some point you will sign, pick the right time! 

Permalink Reply by mlb on April 28, 2012 at 5:39pm

Does anyone know what rate ckp pays for pipeline right of ways?  As my lease goes they have to pay for each thing they want but it does not necessarily say how much except for a well pad which is spelled out.  Other things are negotiable.  But I was just wondering what a fair value may be, ball park.  Is it by the linear foot or acerage disturbed?  Haven't been approached but like to keep ahead of things.

Tks.

Permalink Reply by craig on April 29, 2012 at 3:30am

My brother was initially offered $12 per linear foot for a single pipeline (not mutilples in one rightofway). Make sure you stipulate that the agreement is for ONE pipeline in the rightof way, or if it is multiples then bargain for each one. In the end they decided to go another route, but here is what happened. 

He countered with $30/ foot, a narrower ROW and a clause that the pipeline had to be removed when not being used for a certain period of time. He also added a few other things not real important. They appeared to be willing to accept his offer. Then they came back and said they were not paying by the foot, but by acreage used. Then the deal fell apart and my brother was out $1000+ in attorney's fees since they went another route. Just remember to read everything and understand it before you sign.

Permalink Reply by mlb on April 30, 2012 at 4:18am

If they go by acerage then of course that may be small which benefits them.  My point will be that with that line in there I can't do a, b or c so I want paid x to offset this.

If you say no to them is there eminent domain in PA for this?  I won't say no if its not a steal for them, that is I am not opposed but I want compensated.  My lease stipulates that I must agree and sign off on any pipelines and that they must be buried 48 in as I recall.

Thanks for any advice/input.

Permalink Reply by gary m on April 29, 2012 at 2:22am

only 2.75 acres but i am in between 3 pads the jenkins, berovich, and cody, just dont see how they can connect them through my property, i just wanted to throw out there my situation so others know what they are dealing with but everyones situation can be different.  

Permalink Reply by craig on April 29, 2012 at 3:40am

Looking at the google earth map, who's link is posted previously in this topic, and where your property is located....I'd say the future will bring them to your doorstep for sure. They may not have the $$'s to be leasing more right now is my guess on why they are doing what they are. I personally wouldn't be in a hurry to sign. Heck they may have you sign a pipeline ROW before they lease you and drill you into a unit. Patience is golden!

MarkO, here on gms, is in a similar boat, keep an eye on his posts. Just remember the upfront money is peanuts,  take a smaller signing bonus if you have to, but fight for well head price and 17% royalty, NO deductions. 

Unfortunately you will have to walk a fine line when the time comes to sign.

Forced pooling in the Utica/marcellus is not covered in Pa regulations, yet...so this may have to play out some before we know if they can avoid you and just pay you 12 1/2 royalty without a lease. Keep us up to date if you would.

Permalink Reply by Frank Nesmith on April 30, 2012 at 9:47am

I'd hold out for now if I were you. Wait until the price of gas comes back, or you will be kicking yourself later. They are giving $3,400 in Darlington Twp. near McRoberts well.

Permalink Reply by Chuck Veiock on May 4, 2012 at 12:51pm

I am in Darlington Twp (Cannelton).  They are going to put a well in a field across the road, we are within 1,000 feet of the site.  The landman came by today, again, to set up and appointment to "talk".  I hit him up with the price per acre and he mumbled about $1,275 and 12% but we would talk more about that later----not happening at that price!  Time is on our side.  Not in any hurry here.  I also mentioned a no surface clause, he stated that they really don't like to do that,  here again, not going to happen without one.

Permalink Reply by Frank Nesmith on May 7, 2012 at 12:54am

It's best to hold out until the prices climb up a bit. At these prices, and after expenses, you won't break even. That time is coming, but you have to be patient, no matter how much they push you....Waiting doesn't hurt.

Permalink Reply by Melissa on July 16, 2012 at 1:23am

We live right on the Oh / Pa line just minutes from you.......signed to early .  I'd wait.   I've not heard if it has been confirmed whether we are dry or wet gas.   It has been said it is wet over to Negley but honestly that is all speculation.   I've also heard it is wet all the way over to 79.   I'm sure they do not want to reveal their hand since they still have land in Pa to acquire.   If in fact they know for sure it is dry....the market is low for that and it would explain the low offer.   I know that the neighbor over the hill on the Pa side rec'd 3300 a few months ago.    A lot of these sites are being set up to hold land that is under lease already.   Will be interesting to see what truly is under us.

Permalink Reply by mkf on July 12, 2012 at 9:53pm

When do the file for a unit?  I don't see that one was filed for the Fedorchak unit.

Permalink Reply by craig on July 13, 2012 at 3:12am

I don't believe there is a requirement of when they have to file the unit at the courthouse. Some have been filed before the drill hits the dirt, others sometime after the well is drilled and fraced and everywhere inbetween.

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