Just Signed with Antero - Noble County OH

I just signed with Antero Elk Twp Noble Co. Ohio & glad i did not sign with AEP.  They are not landowner friendly

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Permalink Reply by Jam on May 25, 2014 at 3:46pm

Larry, Could you explain to me what is so great about Antero, and what did they offer you.

Thanks

Permalink Reply by larry trotter on May 26, 2014 at 1:23am

A fair contract    $6500 per ac. / 20% gross   got paid in 40 days from time of verbal agreement  & when i signed  i got paid

Permalink Reply by Jam on May 26, 2014 at 1:57am

Larry,  Did your gross contract have an enhancement clause and a extension.

If you don't mind could you give me the land agents name & company, I also

have land in Elk township I would like to lease.

Thanks

Permalink Reply by Bill Barnaby on May 26, 2014 at 2:44am
This sounds like someone who works for antero .
Permalink Reply by Jam on May 26, 2014 at 10:53am

18 months ago Antero was signing leases in Noble county with a 21 % royalty.

In April Antero was paying 15,000 per acre at Piedmont lake.

They will not offer a lease without an enhancement clause or without an extension

This to me does not sound land owner friendly

What do you think 

Permalink Reply by adam sorell on May 26, 2014 at 12:20pm

No company  is going to offer lease without enhancement clause.

Permalink Reply by GW3 on May 26, 2014 at 1:01pm
Our leases were not with antero, but all our leases have 18% and 20% gross at wellhead with no enhancement clauses .. The attorneys even put in lease the definition of "gross at wellhead"in case they forgot what "gross" really means .. We do have an extension option .. We would not sign with enhancement clause .. Its ure ground , ure minerals ,if they want it , they will accept ure terms . After the thrill of the "sign on bonus" per acre, u are left with the lease u signed... For the rest of ure life .. And probably your childrens life ..choose wisely and good luck
Permalink Reply by adam sorell on May 26, 2014 at 3:38pm

GW3- No one offers lease without market enhancement. No one except AEP or it shell companies. All the money you get will be paying attorneys fighting them to honor the lease.

It's  Aubrey McClendon a tiger doesn't change it's stripes. This is a man who rather take on lawsuits than honor his contracts. Besides who would lease with MCClendon unless there were no deduction specifically in the lease. McCLendon will spin anything in his favor.

market enahncement wasn't a bad thing until McClendon CHK decided to use it to screw landowners out of their royalties.

Permalink Reply by adam sorell on May 26, 2014 at 4:02pm

here's what AEP  is probably going to do with their "no deductions at the well head"lease/

quote"

Now I'm concerned.   I met with Antero today and they made a starting offer that was better than average for Tyler/Wetzel.  While we discussed the terms among other things, I asked them about the enhancement clause.  I also told them that Chesapeake signed a gross lease with me.  They told me that Chspk doesn't sign gross leases and I showed it to them.  It reads, "GROSS ROYALTY; MARKET ENHANCEMENT:  The Lessee shall pay to the Lessor free of cost, a royalty equal to eighteen percent of all oil produced from the premises, etc... and shall pay lessor eighteen percent of the proceeds of all gas produced and saved from the leased premises.  Said royalty is to be computed at the wellhead.  It is agreed between the them that notwithstanding any language herein to the contrary, all oil, gas or other proceeds accruing to the lessor under the subject lease or by state law shall be without deduction, directly or indirectly, for the cost of producing, gathering, etc...hereunder to transform the product into marketable form."Now, the guys from Antero are telling me that this wording allows Chspk to seperate the wet gas byproducts(methane, ethane, etc...) and sell that without having to compensate me for that, because I'm getting paid at the wellhead based solely on volume.  I'm not in agreement with them because all those constituants are products of the gas but they did get me wondering.They then tried to justify Antero's "enhancement clause" and told me that it was a much better deal.  My response was, "Now that you've got me questioning the Chspk lease, I want the enhancement totally removed or explicitly saying that I will pay absolutely NO production costs and my 18% is to be calculated on oil, gas and ALL products thereof, or I will NOT sign any lease."  Clearly, to me, that enhancement clause is another way of them charging the royalty owner production costs and if the clause in the CHspk lease actually ends up meaning what they say, I'm gonna be pissed."
Permalink Reply by adam sorell on May 26, 2014 at 4:27pm
Reply by bungalow_steve on April 5, 2012 at 6:09pm

There is no absolute "wellhead" price. The way they compute it is they sell the post processed liquids at the market price, say $12, then they figure out how much it cost to process it, say $1, the wellhead price is then back calculated $12-$1 = $11.  So $11 is what the liquids where worth at the wellhead and that is what you get. This is called the net back method of calculating royalties.

Some gas companies would subtract another $1 from the $11 and give you $10, this is what the "no processing costs to you" prevents, it doesn't stop the gas company from computing royalties using the net back method.

Permalink Reply by Jam on May 28, 2014 at 2:09pm

I am not from the area, but I was wondering if there is any landowner groups

negotiating leases in Elk township. Where I live landowners join together in

all sizes of groups to get better offers.

Thanks

Permalink Reply by Tennessee on June 20, 2014 at 1:57am

Hello,

I live in Tennessee but have a small parcel in Elk Twp. 

Any activity there?

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