New or renewal offers in Tioga county ???

     Has anyone gotten a call or otherwise been contacted to renew an expired lease or start a new lease in Tioga Co. ,PA ? If so, what was offered ? RE: bonus, royalties, length of contract, how many levels (Marcellus, Utica, Trenton/BR, etc.). Are they still offering Pugh clauses? Who was doing the offering? Any info appreciated...Thanks, Theresa

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Permalink Reply by Theresa Kolk on September 21, 2016 at 10:53pm

Thanks, Jack...what do you know of Southwestern? Seems like I never really see their name on here yet they have several wells and/or permits in the Liberty area...any thoughts?...thanks, Theresa

Permalink Reply by Jack Young on September 22, 2016 at 3:29am

Amazingly, we've never leased to Talisman or Southwestern - neither is active in areas where we have unleased oil and gas rights. I have a stake in a partnership with some involvement with Talisman and generally their reputation is pretty good, but I don't have any personal insights.

I don't think that anyone will be selling to bigger companies in the near future - if anything, they are more likely to sell to smaller groups with fresh funding who are trying to get into the market while prices are low. The gas market is still pretty bad in the northeast, and until more pipelines get built other parts of the country are going to get much of the attention.

We need to be patient and hope that the players still active in our area will keep things moving ahead even if progress is slow for the next couple years.

Permalink Reply by Thomas Lilli on September 22, 2016 at 9:11am
Agreed! my land appears to be in the most southern area of their current holdings.

Is it customary to be officially notified when you are officially in a unit?
Permalink Reply by Jack Young on September 22, 2016 at 1:11pm

Eventually, but not always before the well is drilled or put into production. The unit isn't official until it's been recorded at the courthouse. And plans sometimes change based on what they find and which neighbors eventually sign leases.

Permalink Reply by paleface on September 21, 2016 at 11:07pm

Good advice Jack.

Permalink Reply by Tom Brian on September 22, 2016 at 7:00am

Jack:

You nailed it, I know people in my area that have ask too much too long and have been shunned, (by Shell) or been put on the back burner likely for a long long time.  

Permalink Reply by Jesse V. on September 22, 2016 at 5:22am

I think in Tioga it's fair to say that Shell is the major player in most areas, but I know that Talisman, SWN, Seneca, Teneska and maybe a few others have had activities and in some cases are still trying to operate on a very trimmed down level as compared to recent years. Market dictates that. I think the best way to get a big picture would be if you could have a map of the county showing where these companies units and pipelines are located. This play in Tioga has been partially developed. Players have carved out their areas and those areas don't seem to have changed even over the past 3-4 years when acreage has come open. 

Like Jack said when a company is planning to invest millions into drilling a well and they end up being your only option for development they are not competing against anyone but themselves. I would definitely push for zero deductions but given what I've read about what Chesapeake is doing to people and the limited power the state apparently has to step in I'm really not sure what no deductions will do for you if they decide to "do what they want". I can't speak to Shell but so far from what I've been told Talisman (now owned by Repsol since 2015) and SWN seem to be true to their contracts in terms of fair payments. Good luck to all!

Permalink Reply by Gary Keeney on September 22, 2016 at 6:39am

It is a balancing act, trying to protect your rights and your land and yet work with them so they  drill and produce.  The worst part is on so many occasions the land men have just outright lied to us. It is hard to take what they say at face value.  I would agree that Shell is the only game here locally and I do want them to drill and produce, but I don,'t  want to give the farm away either.

Permalink Reply by Roy Siefert on September 22, 2016 at 1:58pm

Gary, I am in Chatham near the Middlebury line. I just got offer to renew at 1500/14%/7years. I too have Jackie Root addendums. I have until May on my present lease. I was somewhat surprised that I was approached by Southern Tier Acquisitions who said they represent Shell, but I have not been able to find any info on them. I haven't made direct contact with Shell yet because I have plenty of time.

Permalink Reply by Gary Keeney on September 23, 2016 at 1:18am

Roy

Southern Tier Acquisitions appear to be the main land men now. That is who is working with ( or against? ) me now and a different person from that company is trying to lease my neighbor.  There appears to be a rush on getting some areas leased again but I don't take what the land man says at face value.  Feel free to message me to talk about details.    Good luck.

Permalink Reply by Jesse V. on September 23, 2016 at 5:23am

From past experiences Landmen relay normally about 50-75% truth from what they are told further up the line. My guess would be that Shell has budgeted some money for acquisitions. That budgeted money comes and goes it seems quarterly. 

I've often tried to put myself in a companies shoes as I've spent a lot of time trying to figure out why they do things the way they do. I've looked over maps and listened to any bit of detail that is presented to me. I guess the only thing I've learned is that the driller and myself share in the same end goal and that is to have gas flowing from my property. We just differ on what is fair compensation for me to be paid upfront and from the royalties. One thing is for sure though. Once the ink is dry there's no going back. Well, almost no going back.

Permalink Reply by Brian Day on September 25, 2016 at 4:58am

As far as I am concerned, if a landowner agrees to deductions from his/her royalty percentage, they might just as well figure on nothing higher than the state minimum of 12.5%.  Less than a month ago, Shell offered me $1500.  Now I am hearing $2000.  All the while, Shell is scraping dirt and setting up pads.  the price of gas is creeping up.  An election (if you can call it that) is about to occur, so industry will have slightly better prediction of the future.  Take a look at what is going to happen on your land when Shell gets the go ahead.  Figure out what the loss is worth to you and wait a bit. 

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