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.

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Permalink Reply by Jesse V. on October 19, 2014 at 2:37pm

I find it very hard to believe that anyone in Tioga County would group up with Jackie Root again. Doesn't anyone recall her signing thousands of acres in Tioga Co. and then going and working for the company she handed all those leases to. Not to mention some people are still trapped by those leases to this day. That was nearly 10 years ago.

That said. Tioga County has been under Shell's stranglehold since East Resources sold to them. They have done next to nothing and because they have such a strong Lease hold have no reason to pay a fair rate. This is a second chance for Tioga Co. At least for the few that have broken from their old East Resources Leases of $50/5/12.5%. Shell has ignored big chunks of these folks for a long time now. Well, there is interest again. Create a bidding war. Wait for some other companies to react to the Utica News. Wait at least until after the 2015 acquisition budgets come out for these companies. That is when you will see some real bids here. As always be aware of your surroundings. Speak with anyone and everyone about offers and interest. Know where your neighbors stand. Leased, not leased, about to expire, Getting offers. This is a true second chance for many. Take it slow.

At this point I'd say a fair lease rate should be $2500/5/15%-18%. If you are under 20 acres a non-surface is something to fight for. And fight for those addendums. They don't want to give them but they will if you don't give in. If Shell won't tell them someone else will if they want your lease that bad they can buy it from who you sign with. They've done it before.

Permalink Reply by Landowner on October 19, 2014 at 11:39pm

What company is this that you are referring to?  If she got people better numbers and they agreed to them I don't see a problem.  We are in "the group" but not under any obligation to go with what she comes up with. 

Permalink Reply by Jesse V. on October 20, 2014 at 2:55am

I believe it was Long Consulting Group. If Jackie isn't going purely off her "vast experience and knowledge" and has put a competent Oil and Gas Attorney on her staff then sure. Join up. I just recall Jackie's "50 point addendum" that she and everyone in the County kept talking about back in the day. It was fluff. 90% of the clauses are givens in any contract and certainly made little difference to anyone. Plus, the one lease fits all format of these groups is ridiculous if you actually care about your property in anyway. 

Permalink Reply by paleface on October 21, 2014 at 5:47am

 There is a presentation from her group at the Lawrenceville fire hall on Oct. 29th at 6:30 open to the public.

Permalink Reply by Janice L. Hancharick on October 20, 2014 at 3:55am

Hi Barb!

That's exactly how 4-County has worked w/members too.  Don't like what you see for Pete's sake  (& your own) ... DON'T sign.  I'm aware of the increase in activity to lease for drilling purposes, for pipeline right-of-ways, and for increase in buffer zones around storage areas.  The latter puts more AC under the control of existing storage/pipeline companies even when the geology of the region doesn't allow  for it.  That's 3 different documents folks are having put in front of them to sign all across this region.  If they haven't done their homework the land agents win again. 

All the meetings, all the pamphlets and webinars from Penn State's MCOR, county resource organizations, and local landowner groups  have made available since the first "gas rush" to educate the public ... all will have been for nothing if folks didn't process the info and learn how they can be affected.

For ANYONE whose lease has expired or will soon, PLEASE get a Lease Release document for your records and request the company send a copy to the county records office. 

Permalink Reply by Jackie Root-CMM on October 22, 2014 at 5:39am

I feel the need to reply to this post. Yes we are working on a landowner group once again in Tioga and Potter Counties, I do not know if you, Jesse V, . participated in one of our previous groups but I would be glad to address your concerns if you were a client. All group deals were voted on by participating landowners and no participant was ever obligated to sign if they chose not to, they could simply walk away owing R&R Energy Consulting nothing. Having said that I will also note that in all groups 95 to 100% signed because they were happy with the deal. The current group is working within the same format and I believe that it will take collective bargaining to recieve offers that better reflect the potential value of the Utica, Marcellus and Burket reserves under Tioga County. We have completed deals with 9 different companies, ERI was one and we did at least 4 deals with them. I have never worked for ERI or any other gas company, I work for landowners exclusively. We organize landowners, bid for competitive offers, lay out the choice for landowners and facilitate the lease signing for those who wish to participate. And yes I am in it for the money! I get paid when the landowner gets paid, I have not taken any overrides or any % of the royalty in previous deals nor am I in the present group. I post under my name and respond when attacked with incorrect information.  Hopefully this clears up any misinformation. Jackie Root

Permalink Reply by Gary Keeney on October 23, 2014 at 2:47am

My Wife and I both had properties in the original "Root Group"   and received more than any of the offers that were available at that time.   We have always been able to call or e-mail and get answers to questions.   We currently have one property in this new group.  Just our opinion but I think the groups are the way to go and we have been very happy with Jackie

Permalink Reply by Peggy A Murray on October 20, 2014 at 12:41pm

Is this your first signing of a lease? Where in Tioga County. Who with?

Permalink Reply by Monte Zane on October 20, 2014 at 6:26pm

It's not the first signing of a lease for me. It's in southern Tioga County and it's not with SWEPI. I am not sure what I am and am not supposed to say about anything but I can say that.

Permalink Reply by Peggy A Murray on October 21, 2014 at 2:37am

I am not sure about public disclosure either but here in Northern Tioga the offers are coming in before the 5 year lease is up and are not only for a 10 year lease but considerably less than what was paid 4 years ago.

Permalink Reply by Monte Zane on October 22, 2014 at 8:19am

Thank you. Rightly or wrongly, based on what I consider to be the special circumstances of these two parcels of ours, and for the good of my family and future generations, I am going to hold out for what I consider to be a fair deal.

Permalink Reply by Janice L. Hancharick on October 23, 2014 at 8:54am

Monte, I wish nothing but the best for you and others who believe they can do just fine on their own.  Your intentions are the best ... in fact the same ones group members have. 

Be extremely cautious.  Jackie and I each have groups in this region, and they will succeed not just because of  #'s, but even more importantly because of the clauses included in our final leases  that protect our members' well-being and the company clauses we are able to re-word to level the playing field.

Again ... good luck!

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