Jefferson County, OH leasing

According to Marcellus Drilling News, people in Jefferson County, OH are getting offers as high as $6000/acre and 20% for leases with Ascent and Gulfport.  These numbers are impressive and reminiscent of offers in the sweet spot during the boom.  Hopefully this is a good indicator of what's to come in the near future.  Thoughts?  Anyone who can confirm these numbers?

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Permalink Reply by jett on September 8, 2017 at 5:02am

Nettie,

No, You are not at all alone in this type of offer.  It is not unusual for them to offer low-ball deals - in fact it's very common! Also, they would like to make you doubt the value of what you own. Don't buy it

With us they started with an offer that was utterly ridiculous - in the $200. dollar range and a low royalty % 5 years ago. The terms of the lease were awful, too. This was before people realized what they had here. Fortunately, we told them hit the bricks.

They need to get real and quit wasting your time. These guys hope they can find someone who is unaware of what's going on in area. Good for you for coming on here and getting the information you need to make a good decision. As the other posts show, leases are coming in for 6,000 to 7,000 an acre and 20% gross royalties. What you own is valuable.

By the way, more pipelines are getting the final okay to start shipping natural gas to other regions so the demand is going up

Sometimes, it's hard to believe that this is really happening in our area but it is and hooray for us!

Permalink Reply by NETTIE b on September 8, 2017 at 6:13am

I cant tell you how much I appreciate your help. We are in the dark on this! Think we are also sort of innately trusting. If it weren't for this website, think we would have settled. Funny thing is, if he had offered 4000, we would have taken it. Think the low-balling works against them. 

Permalink Reply by Shahrokh Parhizgar on November 4, 2017 at 12:57pm

Martin, would you please provide me with the name and number of person offered you 20% gross and 7K acres,

Best Regards,

Shawn

sparhiz@aol.com 

Permalink Reply by Dott on September 8, 2017 at 6:38am

Nettie,

Don't just get hung up with the bonus and royalty amount because you also need a good strong lease to protect you in other ways.  You can Google  O& G lease and see all of the points that are important to have in your lease.  You may not think these points are important to you now because you see dollars and cents but down the road problems can arise and you may find the lease you signed does not protect you. For example if you want to audit the O & G company to be sure they are not cheating you  can you? If you find they owe you do they pay an interest penalty? If they drill one well  then want to hold off for years without compensating you can they? What if they want to change the Unit size or if they do not drill within 5 years can they extend the lease? Will they pay you the same amount? Did they stick in a " Market Enhancement" clause which is the same thing as allowing them to take ALL the deductions they want?  Please see an OIL AND GAS attorney.  They also will know what the going price is for your area.

Permalink Reply by jett on September 8, 2017 at 7:53am

Dott is absolutely right.

The terms of your lease may tie you up literally forever. These corporations/companies have their own oil and gas lawyers draw up extremely lopsided leases so you need your own lawyer in your side of the bargaining. 

They will also try to itimidate you with "we'll take it anyway or we'll force-pool you or if you don't sign now it'll be your last chance or anything else they think will work. One is "hey, all your neighbors signed already for less - we're doing you a favor".

It can take time and effort to get a proper lease but you will be glad you did. Continue to educate yourself before taking such a huge step.

Permalink Reply by NETTIE b on September 8, 2017 at 7:58am

Thanks Dott and Jett!

Permalink Reply by Robert Matthews on September 11, 2017 at 11:18am
I'm hearing a lot of people talking about Ascent resources Utica LLC being active in Jefferson County. I just received a letter from CHK telling me my lease has been assigned to Ascent. I was just wondering if anyone had experience in dealing with this company? Hopefully they will be a little better than Chesapeake.
Permalink Reply by Renee E. Dorsey on September 11, 2017 at 11:44am
Ascent is The company that Aubrey McClendon started. RIP
Permalink Reply by NETTIE b on September 15, 2017 at 11:04am

Thank you!

Permalink Reply by Darlene Nelson on September 13, 2017 at 11:31am

  4 more permits issued for Jefferson County last week...that's got to be a good sign..

Permalink Reply by Robert Matthews on September 14, 2017 at 12:47am

Darlene, Do you know where in Jefferson the permits were issued ?

Permalink Reply by Darlene Nelson on September 14, 2017 at 1:26am

Smithfield

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