We are new to this gas and oil leasing siutation and had a few questions on how to figure out if we are getting the most we can out of our lease before we sign anything.

Located in Belmont County, Ohio Zip code is 43950. We only own 2 acres in a little cul-de-sac area. They have recently established a well pad about 1 mile from our home and are expected to go directly underneath our house.  The name of the wells (that i can see they have permits for on the GIS map) are they SKYHAWK 2,4,6,8,10 and 12 wells. 

Rice Energy orginially offered us 3500 and acre and we didn't really get back to them after they mailed us that lease document. They called us back this week and offered 4500 an acre.  He was a little pushy about us agreeing this time around because he said Rice Energy is merging with another company next month and he is concerned they are going to stop leasing new land and because we are in this wells path they may just force us to sign something.  Also sounded like he was worried he may not have a job after this merger so maybe he just trying to get everything wrapped up so they don't get rid of him after the merger?

Does this seem like a reasonable offer considering we are directly in the path and they are going under us? As far as we know, the neighbors beside us have not signed anything and have no plans on signing anything so it is hard to us to get comps....This land was previously leased for around the same amount. I know prices are down but i also know things are supposed to be picking back up around here

any and all help is appreciated!

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Who is the landman?   And the language of the lease is more important than the money per acre.   


I'll start with the "threat" of forcing you to sign. That's nonsense, and the use of this threat appears to me to be the action of a desperate person.

Next, I'm curious about the claim of the well going under your property. If true, that actually could place you in a strong position. I have seen landowners owning small tracts, such as yours, paid much higher bonus payments. If you are familiar with the ODNR site, you can find out if your property is included in a well unit or near a well unit.

If you are not familiar with the site I can find out for you. All I need to know is the township and section in which your property is located

i am somewhat familiar with that site but they havent started drilling anything yet so i am not sure it is going to show what i need to look for yet.

We are in richland township..i attached a picture from the ODNR site that shows us in relation to where the well permits are. I am not sure if its helpful to you or not. Right now all they have is a place for the pad to go and they widened the bridge to accomodate well traffic but no drilling has happened yet



Renee is correct the value of the lease bonus may in the long run pale in comparison to the value of the lease terms that you can negotiate.  The reality is that under Ohio law you can be "force pooled" or "unitized" see this link for more information:  


This is actually a good law as it keeps the lone wolf in the pack from screwing it up for everyone else.  One tree-hugger should not be allowed to stand in the way of 99 other persons rights to monetize the value of the minerals under their property.  This is common sense legislation and protects your rights.  Don't hate it.... just educate yourself about it so you understand the process and can then weigh the decision that is before you.  Sometimes people who are force pooled get a better deal than some who negotiated their own lease but still I'd rather be in control.

By being proactive and working constructively with the landman and or Rice Energy direct you can secure the best deal for you and your family.  With only 2 acres it is hard to advocate spending a lot of money on legal fees but you might take the approach of visiting with your neighbors and consider the idea of going together to share the costs.  Don't listen to people who say you cannot be forced as this is wrong information.  In the end be glad someone is offering to give you value for something you never counted on but just be smart and do your homework to ensure you're getting the best deal possible.  Again with only 2 acres you're not likely to make a mistake that destroys your financial future.  Lighten up and smile and be glad you're in Belmont  County OH.  It's a great place to be!!!

so because i asked a question and am seeking more infomation from people who have more experience than i do, i need to lighten up and smile? lol

thanks for your input.

Nah I'm just kidding you.  Some people on this site get so uptight and stressed it makes me laugh.  It's like suddenly a great thing is happening for them and the old greed factor kicks in and everyone is out to screw them and take advantage of them.  Don't be like them!!!  lol

Educating yourself and asking questions is always a good thing Samantha.  You're a smart cookie!   I have a feeling you're going to make the right decision here.  

i am more than thrilled to get anything i can...we desperately need new bedroom furniture and my husand is addicted to tools and jeeps so anything helps! lol I just don't want to be uninformed and make a stupid decision because i am too greedy and want money right now versus waiting it out just to see what the best plan of action could be.

i honestly never thought anyone would put a wellpad this close to our house or the ritzy houses on the next street over but they are.  We asked our neighbor what he thought about it ( he is an older retired gentleman) and he said he will never sell his no matter what they do so that was really no help there.

Exactly, you have the 100% correct attitude.  You live longer when you're thankful and happy too!!! 

I inherited some minerals after my parents passed and shortly after a company came in to drill a well and we all signed a lease (siblings aunts and uncles) and it was a successful well and everyone was happy.  We got a great deal and I did some counselling and educating them all regarding decline rates and realistic expectations so when it was all said and done no one did anything crazy (like buying a new house or exotic sports car) and in the end we all counted it a good experience.  

I hope it turns out the same for you and you get that new bedroom furniture and maybe a few other things you need.  It truly is like found money and that is always a good thing.  

Best wishes to you

  I would take the last offer, good lease if you are in a unit more money will come along, it won't get much better. lock it in and enjoy.......

thanks my husband agrees with you on that lol

So I checked USLANDRECORDS and cannot find the name "Samantha Paglialunga"  under the property owners.  Are the 2 acres owned under a different name?    I want to check to see exactly where you are in relation to the well.  If the name is Skyhawk, I assume it's Rice Energy.   I can check permits and see what stage they are in currently.   Rice is being bought by EQT and when that happens, many things might change.    I have a pipeline ROW with Rice and a well lease with XTO.   I am not an attorney, but I have learned a bunch about leasing and language over the last 4 to 5 years.   $4500 is not chump change given the market right now; in 2013 it was higher but many operators and tightened down with the market and you might not see those prices again for awhile.  The royalty percentage, deductions and the gross vs. net are more important than the amount, IMO.     Also, with 2 acres don't get too excited unless you are in more than one unit on the pad.   I consider our royalties a gift but since they have varied considerably since last year we have never based ANY future purchases on what may come in.   

Added:  I found the property.  Found your wedding notice and husband name and the property.   (I am very very good at data mining...)   :)  I will look in a bit - have to run some errands this morning.   

lol wow you are good at data mining. I know its not chump change and really all we expect to get is the bonus payment...we arent planning any purchases around royalties etc because we know those could vary and could be nonexistent. My mom barelly gets 50 bucks of month while we know others who are getting probably 50,000 or more a month (they have a lot of land and a lot of wells on the land lol)

i appreciate your help though...i read over the contract and wasn't sure at the time what exactly i was even reading or what i should be looking for


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