Recent Offers in the Marcellus Shale
1. State
2. County
2. Lease Bonus Offer
3. Royalty %
4. Terms (length of the lease)
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Replies to This Discussion
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Permalink Reply by tacoma7583 on
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1. OH
2. Columbiana-Knox twp.
3. $2,000 per acre
4. 15%
5. 5 years
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Permalink Reply by tacoma7583 on
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I cant be specific on who I might sign with. Trinity, cavalier and DPSpenn/Chesapeake have all made similar offers in the area.
It started 6 months ago with a $500 acre. and kept getting unsolicited offers in the mail.
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Permalink Reply by Sam Douglass on
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Keep in mind that an "optimim" offer [a few higher] would be $5000/acre for a 5 year lease ($1000/acre per year) and a royalty of 20 % based on what is being paid for shales in other areas. Offers will not bet higher as long as people sign up. As the time approaches when real drilling is to occur the offers go up.
Other areas seem to have just one shale strata to offer. In the Marcellus shale area there are other strata available. I wonder if the Bonus should double if the Utica shale is included - maybe triple if upper devonian (Ohio) shale is included. And the Onandaga formation just below the Marcellus - should it not be worth something if it is included.
You do not hear about these multiple strata in some other shale areas.
Can you lease just the marcellus?
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Permalink Reply by 015334grltd9m on
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Creating legal language in multiple shale minerals is at its infancy but will be attended to by savy landowners. In regards to old leases that only targeted and drilled for the Clinton, may have a chance of reorganization thru a bankruptcy court .
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Actually the leasing of a particular strata has been around for ... Well, once again, check with the folks in Texas and Oklahoma. It is at least common for smaller shallow well operators who have operated in PA for years to keep their shallow stuff and only convey some of the deeper strata to the richer folks coming into drill the marcellus. And by the way, since most of those old wells have only a 1/8 royalty, you can bet they pocket the difference between the 12.5% and say 20% as part of the deal.
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Permalink Reply by tacoma7583 on
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Copied from one of the emailed leases for my area .
GAS: To pay Lessor an amount equal to fifteen percent (15%) of the net revenue realized by Lessee for all gas and the constituents thereof produced and marketed from the Leasehold, less the cost to transport, gather, dehydrate, compress, market, meter, treat and process the gas and any losses in volumes to point of measurement that determines the revenue realized by Lessee.
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Permalink Reply by Joe Smith on
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Jefferson area, we were able to get well head price without those added costs which add up and take a chunk out of your royalties.
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Permalink Reply by Dee on
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Thanks Ryan and Joe, Our present lease with Talisman expires next October. (originally with Beldan and Blake for 5 yrs, then Fortuna purchased and renegotiated a 5 yr extension - the original formation target was the Trenton Black River) It is gross wellhead for all hydrocarbons. We will be holding out for gross in any renegotiations. If the company that just bought the lease from Talisman wants to drill before next October, that would be fine with us.
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I do not quite understand. The word "gross" suggesting no deductions to the point of sale seems inconsistent with "wellhead" suggesting a so called wellhead price calculated by deducting costs to the point of sale. Hopefully you have a knowledgeable lawyer. Probably missing something.
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Is "net marketed revenue" the opposite of "ORRI"?
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