Union Land Services has been approaching Clarion County Landowners for a few months now attempting to lease the shallow potentially oil rich shales above Marcellus. Another firm has been leasing under a different name in Venango. They are both working direclty for Cheseapeake. It appears that Cheseapeake does not lease directly. Offers have ranged from 250 to 750 an acre at 12.5 to 15% royaklties minus decuctions for production. The terms of th draft lease are not very landowner friendly. Their offers seem a bit low for a potentially oil rich formation where the  return on the investment can be 3 times that of a dry gas formations. However, while the formations have a proven track record from coventional drilling of the sandstone units the  enhanced recovery techniquies from the shales are somewhat un-proven so it may be dificult to expect a high offer this early in the play.

Any feedback is welcome.