Best-Worst Lease, Clause, Sale

We have more than quadrupled our understanding of the ins and outs in this industry thanks to this forum - we are as of yet un-leased, over 125 acres, Southern Tusc County -  (3 miles from new CHK Parker Well in Perry Township/Tusc) and I really want/need YOUR input on the following (thanks in advance!)"

  • Does anyone have a copy of the BEST (non-surface is our preference)  lease agreement they've read that we could access? Used to be ALOV's but we hear there were problems with that too!

 

  • What about a Sale of a % of the mineral rights Agreement? (we are tempted by offers but don't know enough) Anyone sell their rights or a percentage of them yet and how'd it go? Details?
  • And what price tag should we ask for selling  say a 20% interest in our Utica/Marcellus shales only with a non-surface lease as the only type?

 

  • What is/where is the BEST Pugh Clause anyone has read?

 

  • What's the best (as in lesser of all evils) Enhancement Clause you've ever read?

 

  • Any advice for what to hold out for regarding signing bonus $ and royalty % for southern Tusc, 3 miles from Harrison and Guernsey Counties? What time frame you sense we're waiting for?
  • Any other advice or links you think would benefit us old hold-outs (over the past 2+ years we were ready to sign more than once and CHK, Lario, and others either defaulted on neighboring leases or ran out of money, etc...)

 

  • whew....if only we had answers to all the above, we'd be ready to either accept an offer (from buyers, brokers, landmen,) or just keep sitting on it, growing older and ( hopefully) older....while waiting....
  • THANKS EVERYONE - hopefully enough great links and comments and examples will be posted here for EVERYONE to benefit!

 

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Replies to This Discussion

Permalink Reply by mark on October 24, 2013 at 6:35am

my neighbor got offered 800,000 for aprox 90 acres in beaver county Pa hanover twp. really don.t think he was pulling my leg either scary number but he has surface lease but would that matter?  a company from ga. made the offer unknown name will try to find out they have been working on him for a while offers have steadily gotten higher but from what I understand he has to inform range RRC so they can match the number first dibs if you will

Permalink Reply by al raptoria on October 24, 2013 at 7:10am

Hope he follows Mossy Oak's advice to have an attorney look over all paperwork carefully before signing anything....friends in Belmont County sold all their rights and I am not certain they understood exactly what that means to the land...not to mention the neighborhood.

Permalink Reply by Nancy LeNau on October 29, 2013 at 8:33pm

WOW...Mark !!   Good for Him !   What road does he live on ?   Thanks

Permalink Reply by Susquehanna Sally on October 27, 2013 at 11:32am

Interesting to see how leases have evolved over the past 7 years.  Thanks for posting!

Permalink Reply by cecily cox on October 29, 2013 at 2:21pm

This is from Dead Scout Cox.

     Here in N E GUERNSY Co.' I've seen 8 or 10 leases, I have 212 acers and join parents with 240 acres that ain't leased,some held in production( lawyer stuff) . Mossy Oak is right, ya  unfortunately need a lawyerwho knows gas/oil works as leases contain terms or words that only they can understand. Many friends did not,we sorry to say. MARKET ENHANCEMENT CLAUSE ? Sneaky way of going from "gross" to you pay all cost. Not you ,but they decide "what's reasonable". That's like I've heard "in good faith". Selling royalties ? Do what ya got to do, but if it's worth that much ta them, I figure it's worth us holding them. Like, we didn't have this money before and these rights are ours and our future. So fer what this is worth, good luck and peace. 

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