My family was presented with an offer last week for a parcel in Morris township.  This coming a day before Shell announced their impressive initial results with the Utica drilling in neighboring townships.  It was rather underwhelming based on bonuses and royalty rates in Southwestern PA and Eastern Ohio which seemed to be in the $6-8,000/acre range and up to 20%.  The recent announcement regarding Shell's success in Tioga county indicated the production was as fruitful as the best wells in Eastern Ohio.  The offer was $500/acre for 5 years @ 15%.  Am inquiring if anyone else has received recent offers in the area and if you are inclined to sit this seemingly low-ball offer out and wait...

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Good day, Jack!  I knew I'd hear from you

.  My only negative thoughts on T.P.'s JKLM company is that I believe his $300 AC @ 12.5% was and is way too low for what the resources in this area warrant.  With his business acumen he'll do well when larger companies come in to rev up production on the AC he's acquired.  Believe me I have great respect for smart businessmen, and from those who know T. P. well he's all that.

 Drilling shallow wells holds AC and can show some profit, but it doesn't  bode well for landowners who sign and believe its their Marcellus/Utica layers that will bring in great royalties when actually those layers are leased off to other companies ... meaning a lovely margin of profit for the "man in the middle".  Profit margins are what keeps companies in business and jobs available throughout the world.  Everyone knows that.  It's when profit margins tip the scale heavily in favor of the middleman and keeps the resource owner on the short end of the stick that negativity enters the picture.

I am partial to the best interests of 4-County Landowners Group. I'm one of them!  As one of the largest landowners in the area and totally "pro" this region I'm surprised you haven't placed AC in the Group.  Please tell me you didn't settle for $300 AC etc., or did you?  

Run Jack Run....the vortex is sucking you in :)

Don't worry - I've given up on trying to educate her. She's always way behind the curve with her information and biased towards her own self-interest. She'll post and post until everyone else gives up, then start up again on some other thread. And it's all self-promotion.

we have a good bingo...you win jack!

You've got to be kidding!  Starting on some other thread ... hopping around?  How would anyone know about that unless he/she was doing it too?  Who CARES??

This site is for sharing facts as we get them, offers as we get them, and additional sources for related O&G issues.

If Jack has a problem w/speed then he needs to take it up with the professionals sharing info like Penn Energy, PSU's webinar leaders, Jim Willis' Marcellus Drilling News, PIOGA, NARO, Oil and Gas Journal and the countless other "in-the-know" sources I use when sharing info. If they aren't working fast enough to suit him that's his problem.

Those folks get their information second hand and can't share much of what they do know, so your information is third hand and incomplete at best. Which is exactly what I was saying.

I try to be helpful when people ask a question that's in my area of expertise, you're here looking for business. It's that simple. You're not happy because I point out your mistakes, but that goes with the territory.

 

There was a meeting last evening in Lawrenceville, about the current leasing and the opportunities to get a better lease. There is a group forming to try for better terms.  With the multiple layers of shale and the excitement of the Utica. it looks like a chance to upgrade. I am not sure if I am allowed to add this here but Jackie Root ( R&R energy) is forming the group.  We had good results with her in the past leases.  

I'm familiar w/the area, and there is NO WAY Shell's offer should be considered.  As for Seneca, as good as their lease offer is in comparison advise your parents to hold off.  Regardless of what the landman has told them about neighbors' actions, disappearing opportunities, etc., they do have time to learn more.  Going through my files I came across a multi-page pamphlet      '   ''Checklist for Leasing"    put out by Penn State Extension.  You can contact the university's MCOR  or provide your address and I'll copy and mail what I have.

Clevelands are related to Goodalls in your area. Correct?? jlhanch@nc.rr.com

Not sure why the Royalties are so low  ?    Royal Dutch is coming since the results from the Neal and Gee Exploration wells  is Fantastic !  Good Luck to all of you !  

Sorry, I meant to use the word Bonus $$...... Not...  Royalties.

Groups are definitely the way to go whether its Jackie's  or the 4-County Group.  There is strength in numbers and if you don't believe it, ask your self why the companies are putting on a big push now to make individual deals BEFORE their lease signing events w/groups.

#'s  and %'s are always used to take focus away from the fine print in the dozen or more pages that come next.  Individuals get overwhelmed trying to understand the terminology, and companies count on it.  Taking leases to an O&G attorney is the thing to do, but Group expense on that one vs an individual's ... share the cost or open your own wallet .

Several companies are prowling throughout this region now.  Pipeline companies want to expand and we know this because landowners are being approached.  Storage facilities want bigger buffer zones even though the geology won't allow fields to expand. All it took for Shell's success on the GEE and NEAL wellpads and suddenly Potter and Tioga are being smiled upon again.

Whoever and wherever you are, get thee to a Group.  Being in one does not mean you have to sign a lease deal you don't like.  That's part of the beauty!

Hi Janice

Just wanted to offer you a bit of input regarding groups, and why I went it alone some years back.  I hope this is helpful.  I'd have been happy to join a group, but those operating where I live never offered a NSD lease.  The only option was FSD and I did NOT want that!  So I really had no alternative other than to go it alone.

Most people here did end up signing FSD leases, regardless the threat to their (surface) properties.  Some did this with the (verbal only) assurance that the well(s) would be drilled elsewhere.

A key reason for my stubbornness on this issue was thought of what might happen when time comes, and it will, to sell my land.   Regardless my personal opinion that leasing for natural gas development is just fine, I realize many prospective buyers of my land do not hold that view.  Some people do not want to awaken one morning surprised to find a drilling rig setting up on their south field.  Nor do they want even the possibility of such a thing happening.  Only a NSD lease can deal with that contingency, so I went it alone as there was no other choice available to me.   Ended up with a very nice NSD lease which made both myself and the gas company quite happy.  They honestly never intended to drill my land anyway.  I just wanted that in writing.

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