Best-Worst Lease, Clause, Sale

We have more than quadrupled our understanding of the ins and outs in this industry thanks to this forum - we are as of yet un-leased, over 125 acres, Southern Tusc County -  (3 miles from new CHK Parker Well in Perry Township/Tusc) and I really want/need YOUR input on the following (thanks in advance!)"

  • Does anyone have a copy of the BEST (non-surface is our preference)  lease agreement they've read that we could access? Used to be ALOV's but we hear there were problems with that too!

 

  • What about a Sale of a % of the mineral rights Agreement? (we are tempted by offers but don't know enough) Anyone sell their rights or a percentage of them yet and how'd it go? Details?
  • And what price tag should we ask for selling  say a 20% interest in our Utica/Marcellus shales only with a non-surface lease as the only type?

 

  • What is/where is the BEST Pugh Clause anyone has read?

 

  • What's the best (as in lesser of all evils) Enhancement Clause you've ever read?

 

  • Any advice for what to hold out for regarding signing bonus $ and royalty % for southern Tusc, 3 miles from Harrison and Guernsey Counties? What time frame you sense we're waiting for?
  • Any other advice or links you think would benefit us old hold-outs (over the past 2+ years we were ready to sign more than once and CHK, Lario, and others either defaulted on neighboring leases or ran out of money, etc...)

 

  • whew....if only we had answers to all the above, we'd be ready to either accept an offer (from buyers, brokers, landmen,) or just keep sitting on it, growing older and ( hopefully) older....while waiting....
  • THANKS EVERYONE - hopefully enough great links and comments and examples will be posted here for EVERYONE to benefit!

 

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Replies to This Discussion

Permalink Reply by The Hiker on October 22, 2013 at 10:53am

Here's the best lease I've read so far;  the MCWD's lease with Antero.   Lot's of good stuff not normally found in other leases.   They had a real O/G guy sitting in on the preparation, so there are lots of technical specs and non-surface language I've not seen in other leases.   Enjoy.

http://www.mwcd.org/upload/documents/conservation/Seneca_Lake_Lease...

Permalink Reply by henry summers on October 22, 2013 at 11:10am

Very nice

Permalink Reply by al raptoria on October 22, 2013 at 12:02pm

oh thank you!!!!!!

Permalink Reply by Brian Delphia on October 22, 2013 at 12:35pm
My opinion, hire a very good attorney and get it leased. You are potentially talking 600k in lease bonus. Well worth spending $1000 to cover your investment. As far as selling royalties, investors are offering almost 8k an acre( northwest Harrison cnty). Due the math and add a financial advisor to the tab for another $1000. Invest a million $$$ correctly and your set for retirement
Permalink Reply by al raptoria on October 22, 2013 at 3:12pm

Thanks Brian!

Permalink Reply by Jim White on October 28, 2013 at 1:52pm

This link is no longer good. Could you post a copy of this lease? Thanks.

Permalink Reply by Kathi Albertson on October 22, 2013 at 1:09pm
Today I was fortunate enough to have a fly over tour of most of the wells in Guernsey county. One thing I decided is that if I am ever ask to have a drilling pad on my land, I will ask for a continuing land rental fee for the land occupied by the tanks and separators and anything else left behind. They take up a lot of space on some of the sites and will be there for a long time.
Permalink Reply by al raptoria on October 22, 2013 at 3:12pm

Exactly Kathi - just one more reason we'd only want a non-surface lease!

Permalink Reply by searcherone on October 22, 2013 at 4:07pm

In the lease Hiker posted there is the very troublesome word: however in the market enhancement clause. This clause also says "reasonable" costs and who decides what is a reasonable cost?

Permalink Reply by al raptoria on October 22, 2013 at 4:28pm

Good point! You've got an eagle eye there! Thanks!

Permalink Reply by Mossy Oak Properties on October 23, 2013 at 7:29am
Just remember that the sale of minerals is the sale of real estate in Ohio. It amazes me how many folks sell this real estate without the representation of a licensed qualified broker or better yet their attorney.
Permalink Reply by al raptoria on October 23, 2013 at 11:52am

 

Thanks Mossy Oak - We just talked with someone offering us less than down the road in Harrison County. They paid them around $8,000 an acre Mineral Rights Sale and are considering offering our area (Tusc County) under $6400.per acre SALE of rights, and doing so reluctantly...all that oil and not enough gas here...or so the paltry few tests done miles away from here may indicate....

Nice enough fellow - we contacted him first - saw his ad on this forum - off to the side. Says the investment group he reps out of Oklahoma has $20 million they want to invest in Ohio shale plays - just not thrilled with Perry Township/Tusc County.. He said he also heard a nearby well owned by CHK  is NOT going to be drilled after all. He didn't recall the name; I still think the Parker Well WILL be drilled....any other news out there? Thanks everyone.

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