Replies to This Discussion

Permalink Reply by scott brion on August 19, 2013 at 4:38pm

Ok Got ya- I assume from your comment that their leasing rate is similar to what I have seen in the southern part of the county?  1/8th royalty and $300/acre paid up lease.  

Permalink Reply by paleface on August 19, 2013 at 5:12pm

 There is people who have done better,you can negotiate if they pursue you they need your land.I've heard a few people have agreed on $1000 an acre.

Permalink Reply by paleface on September 6, 2013 at 3:51pm

 Josie you nailed it.

Permalink Reply by Gringo on September 7, 2013 at 12:26pm

wishful thinking, but not the case. Tioga is marginal. Shell is getting better results but the shale is what it is. Having spoken to with Shell and Talisman well tenders there is very little of throttling back and not for the above mentioned reason, it is for technical issues.

Permalink Reply by paleface on September 7, 2013 at 12:51pm

 In  middlebury and Chatham I know of three people in production units that asked Shell why the the production dropped off and why the production is low they were told by Shell the wells are choked back or they shut down one or more wells in a unit.People are complaining to them and there telling the people to sit tight,Shell is not a small go getter company.I don't know in time if that will be good or bad for us.

Permalink Reply by Ann Ticopa on September 7, 2013 at 1:35pm

Why are (some) people eager to sell their gas at "the bottom of the market"?  It's (again) predicted that the price will pick up in two years ... at which point production on wells run full out now will have seriously declined. 

BTW, have you heard how much SWEPI is now deducting in post-production costs? 

Permalink Reply by paleface on September 7, 2013 at 3:01pm

 Ann I haven't heard any complaints about deductions so I have no info on that but the Shell lease I have in my file and I would imagine there is variations on leases says( RoyaltyPayment) - On oil and gas,along with all hydrocarbon substances produced in association herewith,(except storage gas) Lessee shall deliver to Lessor,as royalty fifteen percent of proceeds realized by Lessee for that produced and marketed off the leased premises. I would think that is wide open for deductions.This lease says East Resources on the top.  

Permalink Reply by Ann Ticopa on September 8, 2013 at 7:27am

Note: East Resources Inc is the original East and East Resources Management is the name Shell used initially.

According to a quote from a Shell rep, the ERI leases (also) allowed for deductions. I don't know what the wording would be for a lease clause/addendum that prohibits deductions. 

Permalink Reply by paleface on September 8, 2013 at 8:16am

 The lease I quoted was East Resources Inc. I don't have a Shell lease,maybe someone could post a Shell Royalty addendum ?

Permalink Reply by Ann Ticopa on September 8, 2013 at 8:57am

Paleface: Wording is the same in ERM lease Rev. 5.5.2010

Permalink Reply by Gringo on September 7, 2013 at 4:40pm

Around 2% for Shell. Ultra 12 %- 14% Price for June Shell $4.14 Ultra $3.81

Permalink Reply by Ann Ticopa on September 8, 2013 at 7:30am

Thanks.  So, it really does matter which company holds the lease. 

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