Replies to This Discussion

Permalink Reply by Al Cramblett on November 10, 2011 at 4:26am

Finnbear's post is correct but there is the potential for forced pooling. One must make their own decisions regarding when to lease. I will only share my personal strategy which is: for acreage that is less than 100 acres go with a landowner's group: for 200 acres and above negotiate on your own.

Permalink Reply by Finnbear on November 10, 2011 at 5:44am

I will share a communication I have from ODNR re: Forced Pooling that should ease some concerns.

See the attachment

Attachments:

• Horiz Well Forced Pooling information.pdf, 42 KB

Permalink Reply by SA Frank on December 1, 2011 at 9:46am

my understanding on forced pooling is that they will have to show that they have made a reasonable attempt to lease your property for a fair value.  i don't think that they will be able to come back and claim forced pooling without making an offer that would reasonably match other royalty percentages already offered to your neighbors.  I would also say that forced pooling is probably rarely used.  It is easier to go around you than force pool.

Permalink Reply by sspoon on November 30, 2011 at 10:04am

on shale biz its 5250 and 20% as of 10/15.

 

Permalink Reply by Mark Allen on December 1, 2011 at 8:49am

depends who you talk to..I have heard $5350 from Gulfport, $5800 from Chesepeake.

 

if we think about it,the bonus consideration might as well be $6000 as the title folks and attorneys take their cut,the leasee is already paying in excess of 6k...more for the landowner.

 

Permalink Reply by Al Cramblett on December 24, 2011 at 4:14pm

A  lease signing on December 14 was reported at $5800, 20% gross royalty.

Permalink Reply by Finnbear on December 28, 2011 at 7:03am

KWGD is a law firm out of Canton OH who has successfully negotiated leases for some landgroups in SE OH in the past year.
w***********

Permalink Reply by Shower Bath on December 28, 2011 at 7:56am

Earlier in the year Kenyon was leasing for Chesapeake. I am not sure if they are a contractor, or just one of Chesapeake's shell companies. If you contacted Chesapeake, they most likely handed you off to the Kenyon landman.

Randy

Permalink Reply by Finnbear on December 27, 2011 at 6:26pm

Was that a Chesapeake lease via ALOV/Buckeye Mineral Development/Bob Rea?

Permalink Reply by Al Cramblett on December 28, 2011 at 3:50am

The lease was through KWGD with Cheasapeake. 

Permalink Reply by Al Cramblett on November 28, 2012 at 1:56pm

A phenomenon is occurring which surprises me.  Some of the five-year-old leases due for renewal are not being renewed! I know a  landowner in western Harrison County who took advantage of this by leasing his 275 acres last week for a signing bonus of $5600 per acre with an 18 1/2% royalty. This is a little lower than the peak earlier this year but still not bad. Congratulations to all of those  able to get out of the old leases.

Permalink Reply by jerry allen on November 28, 2012 at 2:08pm

Do you know who the original and new lease are with?

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