HELP- new renewal Range Resource lease offered

We are due for lease renewal NEXT MAY not the current one coming up. 

Our property lies mostly in Beaver County (near airport). 

Went to a meeting maybe a month ago. Range offered all of us $3500/acre signing bonus and 17% royalty. They said they are offering us more than last lease so they could sign us up early as they are attempting to show a pipeline company that they have all the leases so that the pipeline company will put the infrastructure in place.

The kicker is they will only pay the signing bonus spread over the 5 year timeframe (1/5 a year) do to he fact of them being land rich and cash poor right now- can't sell gas till infrastructure in place to transport. ALSO if they drill at year 2 you would not receive the 1/5 of your signing bonus PLUS the royalty, you would only be guaranteed your royalty with a guarantee of $100,000 paid to you within that year. So if I was supposed to receive a $100,000 (1/5 of signing bonus) that year plus $20,000 in royalty for a total of 120,000 that year I would only be paid $100,000! So essentially they would short me for that year alone the $20,000 of signing bonus!  ALOT of us were up in arms but they said they have a ton of people signed so if we don't agree then they will essentially drill around us and not renew a lease...mind you we have well over 100 acres.

The other thing that has happened is Range Resources has contacted a ton of attorneys in the area and Range will be paying them $50 acre to get the paperwork done so now the landowner will not have to pay out of pocket. They presented it as if they were doing everyone a favor! This includes the lawyer many of us used in years past who we really trusted! Can you say CONFLICT OF INTEREST!?

Not sure how to handle this...Range has essentially gotten rid of all the competition since they have virtually all the land locked up.

THOUGHTS?

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Replies to This Discussion

Permalink Reply by Nancy LeNau on April 16, 2015 at 3:21pm

Well said, Todd !

Permalink Reply by Brad on April 16, 2015 at 12:50pm
Terri, Is your property by Pittsburgh International or Beaver County Airport ? Like Gary said Chesapeake has leases near Beaver County Airport and I know Range Resorces has leases from Allegheny county line to Ohio river.
Permalink Reply by craig on April 16, 2015 at 12:57pm

I suspect this property is near the Pittsburgh Airport.... no Range leases I know of North of the Ohio river.

Permalink Reply by A. Betz on April 16, 2015 at 1:56pm
Sorry everyone had a tough time getting online...Our property is near international airport. I had no issues with range paying the lease bonus over 5 years. I just had a big issue with them saying if they drilled you would only be guaranteed the 1/5 amount a year that INCLUDED ROYALTY so they would be shorting u tremendously if $80,000 of it was royalty.
Permalink Reply by A. Betz on April 16, 2015 at 2:02pm
I think it is too late to form a land... not enough time. The attorney we used last time and who we had trusted (now unsure because receiving payment from RR) said many in area had already signed the leases. We know our neighbor across street who has a lot more acreage than us has not signed yet but we are being told we will be left behind if don't sign. Ugh!
Permalink Reply by Todd on April 17, 2015 at 2:34pm
Terri,
Join together with your neighbor across the street so that you can hopefully get better lease terms and get a good oil and gas attorney. If you need a reference for one, friend me and I'll send you a recommendation.
Permalink Reply by Todd on April 17, 2015 at 2:36pm
Whatever you do, DO NOT sign a lease without an experienced oil and gas attorney's review.
Permalink Reply by Nancy LeNau on April 17, 2015 at 2:53pm

Terri, PLEASE..... Listen to Todd's advice !   He knows what he is talking about !   God Bless, Nancy

Permalink Reply by A. Betz on April 18, 2015 at 11:31am
Thanks so much for the advice...I do appreciate it!!
Permalink Reply by Todd on April 18, 2015 at 11:34am
You're quite welcome Terri.
Good Luck with everything!
Permalink Reply by A. Betz on April 26, 2015 at 9:07am

Todd-

I wanted to message you privately concerning a question concerning lease...would that be ok?

Permalink Reply by Brad on April 16, 2015 at 2:57pm
Terri, Is your property by the Boggs farm or are you on the other side of 376 by storage units.

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