Any Lease Offers in Indiana County from Chevron?

We just received one for $750/year or 5 years or $1500/yr for 10 years.  Is this is a little low?

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Permalink Reply by Patrick DeBerry on September 2, 2011 at 12:02pm
Depends. I have no knowledge of bonus rates in Indiana Co. but, the REAL money is in the royalities. You didn't mention royalty percentage. Also, don't forget about addendums. Those can affect your monthly check as well. In short there is way more to this game than up front money. OBTW that does sound a little low for all except marginal areas. Maybe others in your area will respond.
Permalink Reply by Prospector on September 2, 2011 at 2:44pm
Sorry, the royalty is 15%.
Permalink Reply by Jim Litwinowicz on September 2, 2011 at 2:53pm

Most leases now are paid up leases. meaning that they will the full five year total, $3750, as soon as the deed clears. If you take this $750/yr keep in mind that those payments end as soon as they commence drilling a well so you may lose some substantial money.  But since the payments may be spread out over five years, your taxes will be substantially lower.

 

I would also assume that a company may be more motivated to drill quicker so they can stop the yearly rental fees.

 

And I don't have a clue what the going rate is in your area.  You would have to talk to as many of your neighbors as possible to find that out.

Permalink Reply by DEER HUNTER on September 7, 2011 at 3:19am

What twp is that in ? I am in armstrong county not far from indiana county line. I also signed with chevron and recieved 2000 an acre signing bonus. That is 5 yr with 5 yr option 15 % royalty I think there is a formula that they use to determine this. i can't remember it now but will give it to you when i find it. Don't quote me on this but i am pretty sure that's how they determne it

Permalink Reply by Prospector on September 7, 2011 at 1:49pm

It is in East Wheatfield Twp.

I AM SORRY, I just re-read my post and noticed I made a typo.....

Our offer is a PAID UP LEASE with $750/acre for 5 years or $1500/acre for a 10 year lease. 

So, our offer is a one time payment, not payments made every year.  So, when Jim L. said we would be getting a total of $3750 after 5 years, that is not so.  It is a straight one time payment of $750/acre.

 

Again, sorry for the confusion.  That is why I said I think this is a little low.

Permalink Reply by DEER HUNTER on September 8, 2011 at 2:25am
I know there is alot of difference in bonus payments from 1 county to the other. I am not sure why that is maybe because they don't really need properties like they did in the beginning ...? don't know. earlier i couldn't remember how they figured bonus payments... i did remember a while ago. they base it on what my landmen said is The Matrix Economic Evaluation....? you might be able to find out more about this if you research this on line. iv'e never heard of this before. Like Jim said you need to do some leg work and find out what everyone else is getting around you for bonus. try to stick together their is a little bit more power with numbers. Hope everything goes well for you.
Permalink Reply by Prospector on December 14, 2011 at 4:20pm

I just wanted to "renew/update" this posting to see if anyone out there has any activity going on in Indiana County?  Still messing around with Chevron's lease, but haven;t heard from any other companies in this area?  Please let me know if anyone has any activity, especially in Eastern Indiana, right around Route 22 area.

 

Thanks.

Permalink Reply by Jack Straw on December 14, 2011 at 5:55pm

Check out this site: http://www.marcellusgas.org/

Choose "Indiana" County

The map will show the industry activity in Indiana County: well permits, wells drilling, wells drilled and producing.

Click on the various symbols to learn more.

 

JS

 

Permalink Reply by Larry Manges on December 15, 2011 at 3:09am

I'm in Eastwheatfield twp and am currently unleased.  Had the same offer from Atlas/Chevron and would sign with them, but they refuse to even consider any part of my addendum.  Its their boiler plate lease or nothing.

Also talked with EQT and they are interested, but no offer on their part.  They have a pipeline butted up against my northern property line. 

I believe with the MDS/Snyder auction over, things might start moving along.  Between myself and my two neighbors, we have a total of 450 acres that are unleased

Permalink Reply by Prospector on December 15, 2011 at 3:21am

Larry,

 

  I am in the same boat.  Chevron had me send them my addendum list and then rejected EVERYTHING I had in there, except for one which was a 3 year shut in Clause.  I don't even know why they wasted my time having me get addendums drawn up?  Now I am in it for $300 after getting those drawn up by an attorney and still can't use them. 

I also agree, let's see what happens now that the whole MDS thing is over.  I heard EQT was moving into the area, but haven't heard from them yet.

 

Thank you and to everyone for the info.

Permalink Reply by greg secorie on December 27, 2011 at 7:52am

prospector, Im in west wheatfied twp. We have been trying to find a phone number for chevron.  I was wondering if I could get it from you.  I have 186 ac that is surrounded by atlas.  thanks 

Permalink Reply by Prospector on December 27, 2011 at 2:41pm

No problem, the gentleman I have been dealing with is Mark Yingling 814-932-3475.

Things are still tight, no neg. really.  They are offering $750/acre for 5 yr. or $1500/acre for 10 yr.  And won't really look at any riders (addendums) to their lease.  It is basically a "take it or leave it" attitude.  Mr. Yingling is very nice and helpful, but I guess the desicion makers at Chevron have tightened the reins quite a bit. 

 

Please keep in touch and let me know how you make out. 

Thanks.

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