$14,500.00 an acre

Hello folks I'am posting this to give folks a ideal of the value of their mineral rights here in Greene County.
I leased my Marcellus shale five years ago for five thousand dollars an acre recently the company elected to extend the lease for another five years paying the oringal bonus money again.
So that equals 10 thousand an acre.
I recently signed a lease with a land group out of WV for 4500.00 an acre for the Utica. Only the Utica.
All that togther equals 14500.00 an acre in the last five years and I still have everything between the Utica and Marcellus still unleased along with everything beneath the Utica still unleased.
Iam posting this for all the people contemplating selling their mineral rights here in Greene County PA DONT!!!!!!!!
There worth way more then you will ever get paid for them upfront.

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Permalink Reply by S S C on December 11, 2014 at 10:26am
Kevin, i am not in greene county but near by. Part of my acreage is in a producing unit and part is not. I do have a pugh clause. Several times, landmen have to,d me i must give them a change in a lease that they desired or i must sign affadavits swearing to things i could not know or i would be left behind. But i never did and i was not left behind. I have recently had an unsolicited offer for the utica. The companies want leases that are valuable to them, period. Sometimes you may have to go around the landman to the company itself to get the consideration you want. I did to get a no surface lease and i know others who did go to the company directly for other reasons. Not including you, Kevin, but i have had more than one landman just flat out make up stuff about why i had to give them what they wanted. And they did sound convincing. When in doubt see a lawyer who deals in oil and gas leases in your locality to have him review it. If he is active in the area, he will not only know what the terms mean but know what the going rate is. You do not have to pay a fortune or give them a %, you can have such a lawyer read the lease with you for a few hundred dollars. Ask around among your friends and neighbors.
Permalink Reply by rmc on December 11, 2014 at 12:45pm
Hello Kevin I am the oringal poster of this thread.
As I matter of fact all my leases on separate properties have the depth restriction spelled out clearly.
The lease I signed recently for the Utica has not been paid yet as you probably know the Marshall Ohio county group just started signing leases with Tug Hill and they have 120 days to pay the bonus.
Permalink Reply by rmc on December 11, 2014 at 12:55pm
Oh and yes the second bonus payment for five thousand an acre was paid and in the bank.
Permalink Reply by Kevin M. Yeckley on December 12, 2014 at 3:19am

Hello rmc,

Could you give me a call? My cell is 412-651-3736.  Thanks in advance for your time and attention.

Kevin M. Yeckley

Yeckley Business Ventures LLC

412-651-3736

Permalink Reply by Kevin M. Yeckley on December 12, 2014 at 3:14am

Hello rmc and all,

Great discussion and wonderful contributions from everybody! This is the first time that I've gotten "involved" in this type of thing.  Lots of good information and it's a good feeling to share any knowledge and current trends in hopes that people will make more informed decisions on leasing their Oil, Gas, and Minerals (OGM's) to a drilling company and/or selling outright part of or all of their OGM's to a long term Oil & Gas Investment Fund/Company.  Best Wishes to Everybody and May God Bless You and Yours.

Kevin Yeckley

412-651-3736

Permalink Reply by Nancy LeNau on December 11, 2014 at 2:50pm

Kevin,   Thank you for this information and your post.   Have a Blessed Merry  " Christ " Mas !   Nancy LeNau

Permalink Reply by rmc on April 20, 2015 at 11:23pm
Second bonus check received and deposited
Permalink Reply by S S C on December 11, 2014 at 6:15am
^^ correction, typo above

You do not want to sign anything that says you warrant the title. Many leases written by gas companies do say that the landowner warrants the title. You want to cross that out.
Permalink Reply by S S C on December 11, 2014 at 6:57am
My 2010 lease does not warrant the title. It was a lease used by a large group of landowners. It does not mean they have to pay me if i dont have title. That is why they hold back the check til they finish the title work. Talk to a lawyer about that concept, not a landman. Warranting the title may mean more than you think it does and the companies are quite happy to sign without it. They just always ask for the moon on principle.
Permalink Reply by Lynn mudder on December 11, 2014 at 9:40am
Our leases specifically say we do not warrant title. That puts the burden on the gas and oil company to do a thorough search, they do it anyway
Permalink Reply by rmc on December 11, 2014 at 12:48pm
Jesse I will simply not sign any agreement dealing with natural gas or oil where I have to warrant the title. That includes a lease or right a way etc.
Permalink Reply by James Foster on December 12, 2014 at 6:54am

I am negotiating a lease and requesting that a depth severance clause spells out that the lease is for the Marcellus only. The O&G company has come back with language that spells it out but adds a comment about the Onondaga Formation which I have never heard of before. Does anyone know anything about this?

 

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