Are gross leases a thing of the past? - GoMarcellusShale.com2024-03-28T17:48:21Zhttps://gomarcellusshale.com/forum/topics/are-gross-leases-a-thing-of-the-past?feed=yes&xn_auth=noYou are fortunate. I wish fo…tag:gomarcellusshale.com,2014-03-30:2274639:Comment:5629292014-03-30T03:43:14.646ZJanice L. Hancharickhttps://gomarcellusshale.com/profile/JaniceLHancharick
<p>You are fortunate. I wish folks in PA had been so fore-sighted. MANY thought they had the clauses you obviously have, but companies found a way to back-door them that the state's Supreme Court agreed with. It happens.</p>
<p>You are fortunate. I wish folks in PA had been so fore-sighted. MANY thought they had the clauses you obviously have, but companies found a way to back-door them that the state's Supreme Court agreed with. It happens.</p> Our lease reads 18% no deduct…tag:gomarcellusshale.com,2014-03-29:2274639:Comment:5629162014-03-29T20:18:16.725Zdeer spotterhttps://gomarcellusshale.com/profile/deerspotter
<p>Our lease reads 18% no deductions what so ever whether directly or indirectly. Then goes on to spell out all pre and post production cost not allowed</p>
<p>Our lease reads 18% no deductions what so ever whether directly or indirectly. Then goes on to spell out all pre and post production cost not allowed</p> Try including wording that sa…tag:gomarcellusshale.com,2014-03-29:2274639:Comment:5626582014-03-29T19:11:39.071ZJanice L. Hancharickhttps://gomarcellusshale.com/profile/JaniceLHancharick
<p>Try including wording that says PRE- and POST productions costs will not be deducted from the royalty % ... be sure that marketing expenses aren't deducted either. W/O extensively explicit language (whatever your intention), companies will not recognize what's not in black and white.</p>
<p>PA is all in a turmoil now because a law written 30+ yrs. ago didn't have Marcellus in mind when it was passed. The language supplied "intention", but not specifics. Companies have taken advantage.</p>
<p>Try including wording that says PRE- and POST productions costs will not be deducted from the royalty % ... be sure that marketing expenses aren't deducted either. W/O extensively explicit language (whatever your intention), companies will not recognize what's not in black and white.</p>
<p>PA is all in a turmoil now because a law written 30+ yrs. ago didn't have Marcellus in mind when it was passed. The language supplied "intention", but not specifics. Companies have taken advantage.</p> Just think if you were an att…tag:gomarcellusshale.com,2014-03-28:2274639:Comment:5624872014-03-28T16:39:30.818ZBilly Park Whydehttps://gomarcellusshale.com/profile/BillyParkWhyde
<p>Just think if you were an attorney you don't do anything for less than 30% !</p>
<p>Just think if you were an attorney you don't do anything for less than 30% !</p> You may want to read this thr…tag:gomarcellusshale.com,2014-03-28:2274639:Comment:5624662014-03-28T15:34:44.507ZPhilip Brutzhttps://gomarcellusshale.com/profile/PhilipBrutz
<p>You may want to read this thread: <a href="http://gomarcellusshale.com/forum/topics/beware-of-all-the-gas-companies" target="_blank">http://gomarcellusshale.com/forum/topics/beware-of-all-the-gas-companies</a></p>
<p>You may want to read this thread: <a href="http://gomarcellusshale.com/forum/topics/beware-of-all-the-gas-companies" target="_blank">http://gomarcellusshale.com/forum/topics/beware-of-all-the-gas-companies</a></p> Not sure where your acreage i…tag:gomarcellusshale.com,2014-03-28:2274639:Comment:5625652014-03-28T15:30:26.208Zjetthttps://gomarcellusshale.com/profile/eJett
<p>Not sure where your acreage is but we're in the southern most tip of Jefferson County. Friends further north were not contacted. And we were not part of a group. It is be vital to really review your lease closely <strong>before</strong> signing. Look at the thread on GMS that discusses <strong>"If you could redo your lease..."</strong> for ideas to protect yourself <strong>before</strong> signing. <strong>Do not allow a "net back" clause</strong> - those are very bad for the landowner. And…</p>
<p>Not sure where your acreage is but we're in the southern most tip of Jefferson County. Friends further north were not contacted. And we were not part of a group. It is be vital to really review your lease closely <strong>before</strong> signing. Look at the thread on GMS that discusses <strong>"If you could redo your lease..."</strong> for ideas to protect yourself <strong>before</strong> signing. <strong>Do not allow a "net back" clause</strong> - those are very bad for the landowner. And remember the lawyer is being paid to work for your side of the deal. Unless he's the company's lawyer. Then get your own lawyer to be your advocate. It should be that if you ain't happy then he ain't happy!</p>
<p>These leases can basically tie you up forever to the Oil/Gas company.</p> Gross lease is obviously pref…tag:gomarcellusshale.com,2014-03-28:2274639:Comment:5624222014-03-28T13:57:38.178ZFrank Walkerhttps://gomarcellusshale.com/profile/FrankWalker
<p>Gross lease is obviously preferable. Negotiations with land men were never for me. With that much land your either need to be in a group or you need to be negotiating with the gas company's officer in charge of land procurement.</p>
<p>While I'd neither sign nor recommend others sign anything except a gross lease, I realize personal circumstances differ and we all face our individual situations. Still, signing of a net lease should not go forward without a stated numerical ceiling on…</p>
<p>Gross lease is obviously preferable. Negotiations with land men were never for me. With that much land your either need to be in a group or you need to be negotiating with the gas company's officer in charge of land procurement.</p>
<p>While I'd neither sign nor recommend others sign anything except a gross lease, I realize personal circumstances differ and we all face our individual situations. Still, signing of a net lease should not go forward without a stated numerical ceiling on deductions. </p> Thank you for the encourageme…tag:gomarcellusshale.com,2014-03-28:2274639:Comment:5621802014-03-28T12:46:01.002ZEWKhttps://gomarcellusshale.com/profile/EricK570
<p>Thank you for the encouragement! Was it recently you signed a gross lease? Have gotten gross lease offers in the past, but the rest of the terms were such as we did not feel comfortable signing the lease. After reading some of the thoughts here, I really think its worth holding out for a gross lease...might be why the one we're looking at now is so favorable with the bonus money amount and other terms, they plan on making up for it on the royalty end...</p>
<p>Thank you for the encouragement! Was it recently you signed a gross lease? Have gotten gross lease offers in the past, but the rest of the terms were such as we did not feel comfortable signing the lease. After reading some of the thoughts here, I really think its worth holding out for a gross lease...might be why the one we're looking at now is so favorable with the bonus money amount and other terms, they plan on making up for it on the royalty end...</p> We signed a gross lease and w…tag:gomarcellusshale.com,2014-03-28:2274639:Comment:5622812014-03-28T10:50:51.837ZGunner Ostergardhttps://gomarcellusshale.com/profile/NinaCatanzarite
<p>We signed a gross lease and we were not part of a land group. I just want to encourage you not to listen to the land man about what they can and can not do. Decuctions from royalties is opening up a can of worms. You need to mail down the certainty of your royalty payments with no decuctions. </p>
<p>We signed a gross lease and we were not part of a land group. I just want to encourage you not to listen to the land man about what they can and can not do. Decuctions from royalties is opening up a can of worms. You need to mail down the certainty of your royalty payments with no decuctions. </p> Thanks a million for the inpu…tag:gomarcellusshale.com,2014-03-28:2274639:Comment:5620052014-03-28T03:20:47.056ZEWKhttps://gomarcellusshale.com/profile/EricK570
<p>Thanks a million for the input and ideas its most appreciated, excellent thoughts!</p>
<p>We didn't join the Smith-Goshen group as at the time, things on our end would not allow it. For sure on the advantages of the being in a landowner group...however, on the flip side, I would say if someone would actually need the property to drill a well, that giving the same deal as the other landowners got would only be fair. </p>
<p>Very interesting on Jefferson county and that kind of number, own…</p>
<p>Thanks a million for the input and ideas its most appreciated, excellent thoughts!</p>
<p>We didn't join the Smith-Goshen group as at the time, things on our end would not allow it. For sure on the advantages of the being in a landowner group...however, on the flip side, I would say if someone would actually need the property to drill a well, that giving the same deal as the other landowners got would only be fair. </p>
<p>Very interesting on Jefferson county and that kind of number, own acreage up there too, and I thought leasing was pretty much dead at the moment, as have not gotten any offers recently. </p>