Can anyone tell me recent amounts of $igning Bonus/Consideration per acre in Tioga County, PA?

I've been offered $500/acre + 15% royalty for a five (5) year lease on two parcels I own in Tioga County, PA. It seems low to me but I don't know the going rate of late and would love to. Can anyone share with me any recent amounts of $igning Bonus/Consideration rates per acre in Tioga County, PA? Thanks in advance.

Views: 11338

▶ Reply to This

Replies to This Discussion

Permalink Reply by Darrell Weaver on October 9, 2014 at 1:42pm

15% WITH OR WITHOUT DEDUCTIONS

SHELL (SWEPI)................? What township in Tioga county

Permalink Reply by Robin Jackson on October 9, 2014 at 3:21pm
I can share that my lease was signed almost three ago for 2,500 an acre.
Permalink Reply by Monte Zane on October 9, 2014 at 4:01pm

Thank you. That is very kind of you. I realize that markets fluctuate but that amount is more in keeping with I am going to hold out for.

Permalink Reply by Deb Reynolds on October 12, 2014 at 1:45am

State minimum percentage is 12.5%. Everyone has to get that. IF the well turns out to be a big producer, then that figure is far more important than the per acre fee. If, of course, the well isn't profitable, the per acre price is all we get. It's all a gamble. But there's more activity going on than most people realize. Quietly. 

Permalink Reply by Frank Walker on October 12, 2014 at 2:13am

Actually, in the wake of Kilmer, PA state minimum percentage is 12.5% before deductions.  So a lease specifying "no deductions" will net the Lessor 12.5%.  Leases allowing Lessee to make deductions might easily net the Lessor less than 12.5%.  

Permalink Reply by Deb Reynolds on October 13, 2014 at 2:28am

thanks, Frank, I should have mentioned that as well. 

Permalink Reply by Monte Zane on October 12, 2014 at 2:56am
Thank you.
Permalink Reply by elliemae82 on October 12, 2014 at 2:14am

Monte, If it were me I would start high. ($5000/acre 20% royalty for not more than 5 yrs if they don't drill) You can always settle for less. If they choose your area they must feel it has value. But you have to remember the terms in the lease are the most important. You should have a good O/G attorney advise you.

Permalink Reply by Monte Zane on October 12, 2014 at 3:03am
Thank you, great minds think alike! Both parcels have been litigated previously since 2010 and now this low ball offer, but their actions suggest special value. One a quiet claim against me that failed and the other a DOGA forced on us two years ago during No Leasing period, which we got out of. They obviously think there is special value in the unit they are trying to put together.
Permalink Reply by Kevin Howe on October 12, 2014 at 2:52am
$1500/13.5%/10years in Westfield Township
Permalink Reply by Monte Zane on October 12, 2014 at 3:05am
Thank you! If you don't mind, when was this?
Permalink Reply by Kevin Howe on October 12, 2014 at 3:15am
October 2014

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service