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Permalink Reply by Kathleen on April 29, 2012 at 4:23am

The last I heard was 2500-3000 with 15-17 net. I wish I knew of a group for you to attach too. Did you try buckeye mineral. Everyone is going to take a bonus % percentage I think at this point so don't let that chase you away from them, there is also private consultants you could look into. If you could at least get that net to a real gross with a decent lease than its worth it. I wonder though if you can't would it be better to hold out? Did you by chance get any water testing papers? I think most have gone out for our area (I'm in center township) and the company handling the water told me they were asked to be done by early July. I do not know if that's just my section though. They will be out in a few weeks so I'll ask more than.

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Permalink Reply by H. Allison on April 29, 2012 at 4:44am

Thanks Kathleen, Yes I did have my water tested. DPS calls every week and it appears I am in a drilling unit. So far I haven't liked what they offer.

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Permalink Reply by Clinton44 on April 29, 2012 at 7:02am

Do you know how many acres of yours are going to be inculded in the unit??

My advice is don't be to concerned with trying to get a big signing bonus get a decent royalty percentage. That is where the majority of your money will come from.

Yes a big signing bonus is nice but don't let that cloud your judgement signing bonuses are usually once and done royalties will go on for years!!

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Permalink Reply by Chartist on April 29, 2012 at 7:10am

the signing bonus is the only guaranteed money. 

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Permalink Reply by Clinton44 on April 29, 2012 at 7:22am

I was providing advice on the basis of the fact that H. Allison stated that they were already in a unit and still trying to negotiate terms.

There have been cases where they will only negotiate so long then they will just reconfigure the drilling unit.

That happenened in one of the units we are in there was a party that was strongly opposed to drilling of any kind they refused to sign and I heard they were basically offered the world on a silver platter and they still refused so the unit was reconfigured withou them ( as well as some very upset neighbors on either side of them that got cut out as well!!)

 That is why there are only five out of the six wells on the one unit in production at this time. the last horizontal was delayed due to the reconfiguration.

So sometimes holding out does not work out to your benefit, and if you are in a unit it will be drilled at somepoint maybe not right away but it will be drilled  

 

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Permalink Reply by Kathleen on April 29, 2012 at 8:38am

Just for your own curiosity find out how much you are in. Just call the Chesapeake 877 number listed on the water papers. The people who answer are very nice and do not know from what I can tell if you are leased or not. All you need is your parcel ID number and be general asking "so how much do you see of my property in the unit". They can see a drawing with only parcel numbers, no names. They say if you're in the end, half in, all in, etc. if they say all in ask where your placement is. Wow if your in the middle since I think the offer will improve. If they ask for a lease number just say you never seen it. I have a lease and honestly don't have one. As ask if they don't volunteer the drill date. It seems a bunch of drill dates are way off and that's why IMO they are still playing with you. I would find out all I could and use it if possible. If the first rep on the phone doesn't seem to know much call back. I've called a couple of times and who you get seems to make a difference.
If you are in the middle call DPS Penn and ask to speak to the regional/district manager or just ask what his name is than call him directly. Tell them what you know and if there is a lease you have seen around ask them to offer you that one. Be fair and not greedy and this could work! Have fun and please post back.
If you are on the end I think Eric could be right and they could change the unit, but I also think the ball is now in your park a little.

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Permalink Reply by Clinton44 on April 29, 2012 at 9:11am

Our driller Anadarko, has always very helpful when I contacted them and always directed me to the right person to answer my questions.

Told me right from the start how many acres we had in the first unit as well as the units total acreage, could not provide the declaration of pooled unit paperwork had to get that myself from the courthouse.

The second unit that we are in I found while reasearching bottom well hole locations using drilling plat GPS coordinates. Found some about 500 feet from property line called them regarding this and then they gave the acreage that we had in that unit. Then I found that DPU in courthouse as well.

You just have to find the correct person within the company that handles the land issues in your particular area.

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