Harrison County lease rates

What is the on average rate for mineral lease on property in Harrison County, WV?

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Permalink Reply by Robert Chiasson on May 4, 2011 at 3:36am

My wife was just called by a land-woman with an offer of $500 per acre bonus (No mention of royalty rate) for property in Harrison County.  The mineral rights are part of an inheritance and we still don't know the details.

Permalink Reply by scott jackovitch on May 4, 2011 at 12:07pm

That sounds like they are taking advantage of you in a bad way.  Property in Harrison county is going for at least 2000/acre and up with at least 15% in royalties. Please do some homework and join the Harrison county group I am sure it will help to lead you in the right direction. Be patient I believe things are going to get pretty interesting in our area. 

 

Permalink Reply by James Harber on May 4, 2011 at 2:49pm

Scott,

You are right about things going to get pretty interesting shortly. CHK has and is drilling several so called "test wells", and they are hitting very good pay zones as they knew that they would, because there is a whole lot more her ethan has be shared.

I was told todaay that CHK has finally gotten a permit to start drilling at the Jewet Sportsman Club. This well will be approx. 1 mile East of the Bueel Well drilled on Hanover Ridge Rd, just recently completed with pipeline already ran out on it.

/as a rule, it is seldom that a well is drilled and tthe pipeline ran, until several wells are drilled in a area, then the pipeline is ran and hooked up. But, not so with the Buell well, wyh, because this is a Utica well and the production rate on it exceeds what was orginally expected.

There may not be much activity in harrison County now, be patient, they are coming and you will see quite a change within the next 18-24 months.

For what is is worth, that's my take on it.you have a seat on the 50 yard line, ahng in there and wait for a TD. Just remeber a year ago, leasing was at $250. acre then by Nov. went up to$1,000.- $1,500. + 15%, then by Feb. 2011 the price was up to $2,000. + 15%.

As more energy companies come into the area, the price will go up and you may find better terms. It just depends if you are willing to wait or not.

Happy leasing and best wishes,

Jim Harber

Permalink Reply by scott jackovitch on May 4, 2011 at 3:08pm
Thanks James I agree with you.  I believe a lot of drilling lies ahead for us all. I can see the Buell well from my property and I believe the same minerals should be under my ground as well. How many wells do you believe we could  end up having in Harrison county ?
Permalink Reply by James Harber on May 4, 2011 at 3:23pm

Scott,

Way more that you could ever believe, ask me again in 120 days and I can give you a 'real" figure.

I have some good information on the subject, but I am still watching and waiting to see how things progress.

I know that Archer Twp and New Rumley Twp are in the zone, Utica is it and utica is from what I have been told 1/3 gas, 2/3 oil.

Utica is far better than the Marcellus in Eastern OH. I believe things are going to heat up in Harrison, Belmont and Carroll Counties first in this area and will progress out to the other surrounding counties within the next 2-5 years

i was told today that shallow wells that were drilled in Western Ohio in the 30's and 40's are now seeing energy companies going back in and drilling to tap into the oil that has always been there in those formations. We now have the technology to get into those zones and, take it from me, there is a "black gold rush" going on here in the Homeland.

That is why waiting on things to progress, it pays you first not take the first or second deal that comes down the pike. No matter what you hear or are told, "time is on your side".

I go back to the thinking of be willing to deal, but hold your ground on customizing a lease that works and benefits you and your family. because once the lease is signed, it is a done deal and for the most part that will end much further contact with the comapny. Get it right the first time!

Permalink Reply by Josh on May 4, 2011 at 4:40pm
James, you still backing this statement you made?  Sounds a little contradicting.  I wouldn't of brought it up but it was aimed towards me and what I have been trying to say.  I am still waiting didn't take "really very good," offer.  
You need to understand one thing concerning leasing in Harrison county and Eastern Ohio. You have no basis to get the pricing that you have heard is being offered in WV or NE PA. It will take from 2-3 years before anyone will know what production from wells being drilled will produce. One thing that you need to understand, you cannot pressure companies like CHK, Atlas, Range, EQT, etc, either they lease from you and other landowners, or they don't and if that happens then all your lawyers and their strategies go down the drain and you still get 100% of zero and you still owe the lawyers their fees. Take a reasonable offer for the lease and focas on the royalty. They may or may not drill on your property, don't let greed or the greed of others rob you a offers that are reasonable. I have been in the oil and gas business for more than 25 years and I have seen this same argument numerous times. The one thing you need to keep in mind, is if you do not lease, the energy companies will enforce the force pooling if they really want to lease your parcel, then you lose out on any original lease bonus per acre and receive a min of royalty. When that happens, you will think back on past actions and wish you had used more wisdom in making your decision to not take $1,500. per acre plus 15% royalty, which is really very good, since you are not investing one dime in the overall drilling process in the first place. Of course, that is just my opinion.
Permalink Reply by Josh on May 4, 2011 at 4:42pm
Buring the hatchet, that comment has been bothering me.
Permalink Reply by James Harber on May 5, 2011 at 3:11am

Josh,

The "key" is to get in with a landowner's group to craft the best deal for yourself. I have always stood by that for or working with energy companies to get a lease that you can live with, that is feel good about what you have agreed upon. This is not rocket science,

I am sure you follow GoMarcellusShale.com closely and you can find a wealth of information within to learn to make good decisions as to when to lease or not too.

 

I am not a landowner, and I cannot or would not try to make any decisions for anyone. What I am offering is "my take" on how I see it from my experience of being on the oil and gas business for more thn 25 years. Do I  know everything, no at all, but I do have a more secure grasp on the over situation than most folks do.

 

If what I offer helps you great, if not then just "86" and be done with it.

 

Thankls,

 

Jim Harber

Permalink Reply by scott jackovitch on May 4, 2011 at 10:56pm
Thanks again James I will get back in touch 120 days from now to pick your brain again. Hopefully by then we will all have some concrete info on our area.
Permalink Reply by cheliped on May 5, 2011 at 1:12am

Is there only a few places that have oil in the utica - or is it all?  The maps showing the thickness of the Utica shows parts of pa and ohio with 300-400 ft. - are these areas of interest?

Permalink Reply by James Harber on May 9, 2011 at 10:27am

Scott,

I was told today that CHK is going to start drilling at the Jewett Sportsman Club in 2 weeks, were you aware of that? It is another Utica and I can tell you one thing, the "test well" about a mile SW of their location, the Buell Well off Hanover Ridge Rd has become one of the best test wells that I have seen in awhile and for sure  probably top any in this area as of yet. Utica is 1/3 gas and 2/3 oil, and this well is producing 1,000 barrels of oil a day. That's a fair piece of change, and even a 15% royalty isn't too bad either.

Permalink Reply by Paul Martinelli on May 9, 2011 at 10:59am

WHOOOOOOHOOOOOO!!!!!!!!!!!!!!!

 

 

How do you know it is producing 1000 barrels a day?

 

 

Let's see.....

1000/day X $100= $100,000 

  Say a low royalty of   13%       $13,000........yea I can live with that!

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