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 Thomas Lilli on October 12, 2014 at 8:12pm
Your doing well to ask questions here but, from my(bad) experience, get a competent, experienced O&G attorney.

They would have a lot of background knowing how far you can go in the current market conditions because they most likely are dealing with them every day.

The very last thing you want to do is sign a lease that could outlive you without having all the legal protections a competent lawyer can afford you. The lease presented to you was written by lawyers after a hundred years of experience by O&G companies maximizing their interests at the behest of land owners.
Permalink Reply by Jack Young on October 13, 2014 at 9:41am

I believe that drilling activity in Tioga County will be slow until there's more pipeline capacity available and prices are stronger. Right now when a new well gets drilled the operator often has to shut-in almost as much old production to make room for it. If you look at the Marcellus wells near Shell's recent Utica tests, for instance, you'll see that many of them produced very little this year. They had to make space for the new wells.

Unless I missed it, we don't even know where Monte's oil and gas rights are. There are plenty of places where the price he's been offered may be top dollar. Having to defend a quiet title action doesn't mean that the oil and gas rights involved have any special value - it just means that someone was contesting a person's title to them. So I think it's very premature to assume that this property has some special value that's not reflected in the offers to date. It may be, but I don't see any firm evidence for that yet.

Permalink Reply by Thomas Lilli on October 13, 2014 at 9:48am
Jack,

I got a call the other day from South Western Energy for a feeder pipeline right of way.

I suspect more will be called in that area.
Permalink Reply by Jack Young on October 13, 2014 at 11:14am

But that doesn't matter if the main lines are full too - which they've been all summer. Demand isn't growing fast enough to solve the problem in any case. We've been getting $1.60/dth below NYMEX going into Columbia most of the summer, and we're doing better than lots of people. There is just too much gas available right now, and that's going to slow down both drilling and leasing for at least the next several years. The gas companies are very much aware of this - anything but the best acreage isn't going to see significant activity in Tioga County. So unless the property we've been discussing is right next to the Neal well, I'd be careful asking for too much.

Permalink Reply by Thomas Lilli on October 13, 2014 at 12:02pm
In that case on leases approaches their ten year term, do you see HBP activity? What contisitutes production in this case?
Permalink Reply by George Donovan on October 13, 2014 at 12:46pm
Permalink Reply by Charles Randolph on October 17, 2014 at 3:39pm

Thanks for the post, George !!

Permalink Reply by Jack Young on October 13, 2014 at 2:51pm

They won't drill vertical wells like East. Shell will just be patient. Pipeline capacity will catch up eventually, but demand for natural gas will grow slowly unless the US really pushes LNG and tries to grow its gas-dependent industries. But by definition these markets only work at low to moderate prices, so you can hope for higher volumes or prices, but you can't have both. Folks will say you can, of course - they always do!

Permalink Reply by Thomas Lilli on October 17, 2014 at 10:13pm
So Jack, when you say they will be patient, are you saying if they have not drilled in by the end of my lease they will let it expire and renegotiate, or just renegotiate prior to the end rather than pounding the proverbial stale in the ground and calling it production?
Permalink Reply by wyalusing jim on October 17, 2014 at 10:52am

" So unless the property we've been discussing is right next to the Neal well, I'd be careful asking for too much."

jack, how much should someone with around a hundred acres right next to the neal unit expect?

wj

Permalink Reply by Janice L. Hancharick on October 17, 2014 at 5:50am

$1500/15%  in Tioga's northwest region with a 5 and 5 lease

All counties have seen wild fluctuations ... beginning this yr @ $300 AC/ 12.5%.  Ridiculous as those #'s are a few loners signed!

Hang on!

Permalink Reply by Kevin Howe on October 17, 2014 at 10:33am
$2000/15%/5 years in northwest Tioga County PA

RSS

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

Badges  |  Report an Issue  |  Terms of Service