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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My opinion is way too low, I would wait.  $750 total for 5 years doesnt seem worth it unless you have a very strong opinion you will get a well with royalities.  Just my opinion......................

Hi Propector,

I am currently considering signing a lease.   Would you be willing to share the addendums that you wanted added.   I might want the same addendums!   Thanks

They were your basics, pugh clause, plow depth for pipeline, shut in clause, no deduction royalties clause, etc....  Those are the main ones and then there were about 20 more.  Each lease (sometimes) is specific to each property, and it should be.  Every property and property owners are different and some items are more important than other ones to each individual.  I paid $300 to have my lease reviewed by an attorney and then they gave me a list of 26 addendums for that specific lease.  However, they would all not be the same for your lease, b/c of the differences.  BUT I would always have the ones I have listed above in your lease b/c I personally think they are the most important ones.  Hope this helps.

Thanks Prospector,   What is the shut in clause?   Is the no deductions the same as a getting the gross royalty?  I mainly want to protect myself from being held by production by a non-producing or low output well.

FULL DISCLOSURE: FYI, my company is very actively leasing in Indiana County

Indiana county has very unfavorable geology.  It is very faulted there. We know, we drilled right into one.   Also, being a fairly developed county with smaller parcels, as well as the the most drilled county in the state (much land is HBP), it's going to be hard for any of the big players to get a large acreage position.  Right now, XTO has by far the largest acreage position.  Linn had a lot of stuff out there which became XTO's, and they got a boat load when they bought out Philips.  

Chevron/Atlas is only leasing in very southern Indiana from what I've heard.  My company had close to 10,000 Indiana county acres in the sale deal, and there was much more from other companies. We had no significant interest in the stuff in Indiana (and we had big blocks, all over the county). 

Chief drilled down in Brush Valley and out near Strongstown, EQT out by Diamondville, and XTO drilled the Airport and the power plant.  I think Atlas or somebody else is drilling out by Cookport/Comodore. 

Thats about it as far as horizontal wells.  MDS has drilled several vertical MS wells in Indiana and has plans to do a LOT of drilling in Indiana, as their vertical drilling is not encumbered by faulted conditions nearly as much as horizontal drillers. 

With the big oil and liquids plays popping up, increasing drilling costs/regulations, and lower gas prices, dry gas areas are now yesterday's news.  I'd put Indiana down as a 4th tier area.  1st being oil areas, 2nd being wet gas areas, 3rd being dry gas areas with good subsurface geology, and 4th being dry gas with tough conditions. 

This is NOT to say that Indiana is not worth drilling.  It definitely is.  You're just not going to be seeing huge up front money there anytime soon (if ever).  Indiana never got hot even when the rest of the oven was cooking at 400 degrees.  It's not going to get hot now, when all of the much better dry gas areas surrounding it are cold as ice.


Mike Knpp


Knapp Acquisitions & Production

Kittanning, PA

Member - Indiana County Natural Gas Task Force

Mike..I have always respected your viewpoints and contributions to these websites.  Thanks!   Sounds like Indiana County has some issues for successful drilling of horizontal wells.   What are your findings regarding northern Indiana County next to Jefferson County and into the SE corner of Jefferson County, are faults a problem here too?

There are faults there as well.  I spend a good bit of time talking with Dr. Joe Clark, as we sat together on a panel this summer.  He's a retired geologist from IUP.  Great guy.  Its not all doom and gloom.  There will be plenty of drillable areas in Indiana County, it's just that it will take a lot of money to figure out there they are, and companies would much rather drill where they can drill for cheap where they know they will hit good gas when the commodity price is down in the dumps. 

Here's a video of that panel from the PA Gas expo in Indiana this summer, when we were asked this very same question about Indiana's geology. I forgot to mention in my previous post that CNX (Consol) also has a big position in Indiana County, and their land manager sat on the panel as well. 


videos of the rest of the panel session can be found here: 




Thanks, Mike...I missed these discussions when I visited the Gas Expo last summer.   I did see some seismic work later during the summer in Indiana County, but not as much as in other counties.   Hopefully, more will occur next spring.   Consol seems to be most active in the northern section of Indiana County, and particularly, in southern Jefferson County.   I think the problem with faults represents the greatest threat to development for a landowner.  It`s the "big unknown factor" for us!!


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