Wide Spread Leasing About to Commence in the Northern Utica

Once the leasing begins, here are some questions:

      What will be the amount of the up front, per acre, bonus money?

      Will the companies accept landowner friendly leases ?

      What will be the royalty percentage, and the terms?

Views: 3741

▶ Reply to This

Replies to This Discussion

Permalink Reply by Joseph-Ohio on August 27, 2014 at 12:22am

Exactly - thinking ahead is always best.

Watch out for the pitfalls.

Look alive !

Permalink Reply by Barry D on August 27, 2014 at 12:39am

Sage,

Another person who posts on this site continually makes this statement or something similar. So I borrowed the idea and just paraphrased it for my title.

I asked the exact question you posed about some time frame because that person claims to have inside information. But the question was never answered.

My title assumes that other person is correct, the title is not a definitive statement. So, assuming that person is correct I posed my questions.

Permalink Reply by MJ on August 27, 2014 at 1:13am

Barry,  Sage,

I think we both know that "this other person" is never going to directly answer these questions, so I am hoping someone out there among can - or at least speculate with some credibility.  Your posts are appreciated, have been informative and well stated thus far - thanks.

Permalink Reply by Barry D on August 27, 2014 at 2:16am

Sage,

You are correct; we must think ahead, stay one step ahead.

The main reason I have posed these questions was to encourage people to begin thinking about these issues.

Permalink Reply by Barry D on August 27, 2014 at 2:12am

Jesse,

There may not be a need for large groups to represent landowners, if people communicate through this site .

Permalink Reply by Barry D on August 27, 2014 at 3:02am

Jesse,

Again I agree with your analysis.

Word of mouth will be key to landowner success. The information for that word of mouth campaign could start here on GMS. From there people can work together in small groups, perhaps coordinating with others. Just like the Granges as you point out.

$1,500/15% is probably close to where these companies will begin.

Permalink Reply by Barry D on August 27, 2014 at 3:27am

Jesse,

A great resource for landowners is the lease on the ODNR web site.

It will be smoother if the landmen have learned their lesson and do not attempt to mislead, or bully landowners.

Permalink Reply by Craig Stull on August 27, 2014 at 5:18am

Barry,  I know some would disagree with me but I believe people should start a land group !!

Permalink Reply by James Foster on August 27, 2014 at 5:49am

Curious how "wide spread leasing" could commence in "Northern Utica" (not sure exactly what that means  because the Utica runs from NE NY to SE OH and WV but I am assuming we are talking about Trumbull and Mahoning counties and even possibly Columbiana) when most of this land is already leased or held by production.  

Permalink Reply by Joseph-Ohio on August 27, 2014 at 6:03am
Let's not forget to make mention of the Utica Point Pleasant traversing also Ashtabula County, Ohio James.
Permalink Reply by Barry D on August 27, 2014 at 6:41am

James,

As I explained above, I borrowed the term from another person who keeps using it. I happen to agree with you.

I do think there will be some clean up leasing in order to develop drilling units. Therefore, the questions will be pertinent to those landowners.

Permalink Reply by Mike h on August 28, 2014 at 4:28am

Based on my experience in Carroll County (I was a member of the SURE group):

Start speaking with your neighbors sooner rather than later - form your own landowner group. There were a number of companies interested in the ~10k acres of the SURE group and the deal was struck with Rex Energy. My wife and I knew our lease would get traded/sold to CHK but we wanted the more landowner friendly lease than if we had cut a deal with CHK directly (and we gave up a lot of money on the signing bonus in doing this).

Don't trust landsmen, their job is to get you signed, preferably at the lowest cost to the company they represent. They are not your friend - if it isn't in writing as part of the lease agreement then it doesn't exist as far as contractual obligations.

Don't allow anyone to pressure you.

Just a few thoughts.

Mike

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service