Current Westmoreland county bonus $ and royalty percentage? - GoMarcellusShale.com2024-03-29T13:33:29Zhttps://gomarcellusshale.com/forum/topics/current-westmoreland-county-bonus-and-royalty-percentage?commentId=2274639%3AComment%3A786222&x=1&feed=yes&xn_auth=noGetting a gross lease (no pos…tag:gomarcellusshale.com,2018-09-18:2274639:Comment:7862222018-09-18T11:05:16.840ZBW_Appalachiahttps://gomarcellusshale.com/profile/BWAppalachia
<p>Getting a gross lease (no post-production deducts) is more important than the actual royalty percentage. Consult an oil and gas attorney, and explain that you would only agree to 15% on a gross lease. He/she should understand your stance, as this is a common negotiating chip.</p>
<p>Getting a gross lease (no post-production deducts) is more important than the actual royalty percentage. Consult an oil and gas attorney, and explain that you would only agree to 15% on a gross lease. He/she should understand your stance, as this is a common negotiating chip.</p> I'm sorry, but you're not goi…tag:gomarcellusshale.com,2018-09-18:2274639:Comment:7862182018-09-18T11:00:55.205ZBW_Appalachiahttps://gomarcellusshale.com/profile/BWAppalachia
<p>I'm sorry, but you're not going to get anything near $7,500/acre in this current environment. Ten years ago, sure. Today in the heart of Greene County, possibly. </p>
<p>I'm sorry, but you're not going to get anything near $7,500/acre in this current environment. Ten years ago, sure. Today in the heart of Greene County, possibly. </p> Thank youtag:gomarcellusshale.com,2018-09-17:2274639:Comment:7859972018-09-17T01:36:42.974ZJames willIamshttps://gomarcellusshale.com/profile/JameswillIams
Thank you
Thank you Chevron...and I’m in Rostrave…tag:gomarcellusshale.com,2018-09-17:2274639:Comment:7858962018-09-17T01:35:12.868ZJames willIamshttps://gomarcellusshale.com/profile/JameswillIams
Chevron...and I’m in Rostraver township, about 1/2 to 1 mike from the Fayette County line.
Chevron...and I’m in Rostraver township, about 1/2 to 1 mike from the Fayette County line. James, which gas company are…tag:gomarcellusshale.com,2018-09-12:2274639:Comment:7859582018-09-12T18:34:33.613Zfarmgashttps://gomarcellusshale.com/profile/farmgas
James, which gas company are you working with and where is your location?
James, which gas company are you working with and where is your location? I'm in northern westmoreland…tag:gomarcellusshale.com,2018-09-11:2274639:Comment:7859462018-09-11T15:43:42.075ZReservoir doghttps://gomarcellusshale.com/profile/Reservoirdog
I'm in northern westmoreland county, near beaver run, and leasing rates from CNX start at $500/ac/year with 15% gross. The leases are structured so that CNX has the option to extend the lease for 9 one year renewals at the bonus rate of $500/ac. By way of example if your property doesn't get added to a drilling unit until year 6 then the effective bonis rate would be $3000/ac for a 6-year primary term. Keep in mind CNX is drilling the Utica up here.<br />
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I've been holding out since the early days…
I'm in northern westmoreland county, near beaver run, and leasing rates from CNX start at $500/ac/year with 15% gross. The leases are structured so that CNX has the option to extend the lease for 9 one year renewals at the bonus rate of $500/ac. By way of example if your property doesn't get added to a drilling unit until year 6 then the effective bonis rate would be $3000/ac for a 6-year primary term. Keep in mind CNX is drilling the Utica up here.<br />
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I've been holding out since the early days (2010) of the marcellus drilling for good leasing terms. What i have learned is that your bargining power comes down to timing and location. Both need to align to get the best deal.<br />
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I suggest you access the westmoreland county office of deeds website and do a search on the gas company making you this offer to learn who else they have leased around you and if there are any unit declarations near you.<br />
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Good luck! Thank you for the advice. I s…tag:gomarcellusshale.com,2018-09-11:2274639:Comment:7858532018-09-11T13:50:20.759ZJames willIamshttps://gomarcellusshale.com/profile/JameswillIams
Thank you for the advice. I still have yet to sign but, the landman I have been dealing with has still only offered $1000 and acre bonus and swears that “they” won’t agree to offer more than 15% royalties. He also balked at my suggestion that the post production costs being capped and acted as though he has never heard of such a thing.
Thank you for the advice. I still have yet to sign but, the landman I have been dealing with has still only offered $1000 and acre bonus and swears that “they” won’t agree to offer more than 15% royalties. He also balked at my suggestion that the post production costs being capped and acted as though he has never heard of such a thing. Good advice. I know of a coup…tag:gomarcellusshale.com,2018-09-09:2274639:Comment:7857282018-09-09T01:12:24.118ZMarki Robert ONeillhttps://gomarcellusshale.com/profile/MarkiRobertONeill
Good advice. I know of a couple cases where they offer you same deal as neighbor providing you request same. But get with other landowners as a negotiating unit if possible. Signing bonus of $7500+/acre if leasing both Marcellus and Utica+ $0.80 MMBTU cap on deductions with 18% royalties is good target.
Good advice. I know of a couple cases where they offer you same deal as neighbor providing you request same. But get with other landowners as a negotiating unit if possible. Signing bonus of $7500+/acre if leasing both Marcellus and Utica+ $0.80 MMBTU cap on deductions with 18% royalties is good target. Thank you very much for the a…tag:gomarcellusshale.com,2018-07-31:2274639:Comment:7835602018-07-31T18:51:39.686ZJames willIamshttps://gomarcellusshale.com/profile/JameswillIams
Thank you very much for the advice. We do have an attorney friend who’s looking the agreement over, and, who is also somewhat familiar with the leasing process. The Landman is pressuring us as we wait to hear back from our attorney friend. I finally called the guy back yesterday and told him that one of the things that I’m not comfortable with, is signing away surface rights. His reply was that, the surface rights paragraph won’t pertain to us because the drill site is 2 miles south of us so I…
Thank you very much for the advice. We do have an attorney friend who’s looking the agreement over, and, who is also somewhat familiar with the leasing process. The Landman is pressuring us as we wait to hear back from our attorney friend. I finally called the guy back yesterday and told him that one of the things that I’m not comfortable with, is signing away surface rights. His reply was that, the surface rights paragraph won’t pertain to us because the drill site is 2 miles south of us so I shouldn’t worry about it. The guy refused to tell us where exactly the drill site will be but claimed that the pad was allready in place. I thought that was rather odd, but maybe he was “hush hush” about the location for other reasons. Either way, there is zero chance I will sign anything in which would give them all surface rights. With my luck, they would put a gas line directly up through our property. Also, I know we aren’t going to get rich but, with the “Rule of capture” legal battle in Pa not decided on, wouldn’t you think that they would be inclined to give us a more fair contract, rather than have us hold out? I have no idea...just a thought. Thanks again The cost of legal fees would…tag:gomarcellusshale.com,2018-07-30:2274639:Comment:7835202018-07-30T16:54:12.197ZJamesGhttps://gomarcellusshale.com/profile/JamesGillett
<p>The cost of legal fees would likely consume a good portion of the the royalty and bonus payment on 1.4 acres .</p>
<p>1.4 acres can easily be drilled around. Many examples are documented on well permits on the PA DEP web site. There is no set back requirement for the Marcellus layer since it does fall under the conservation law. (above the Onondaga layer)</p>
<p>I would ask for a no surface agreement. </p>
<p>These is no state minimum in PA. The existing law did not define royalty and…</p>
<p>The cost of legal fees would likely consume a good portion of the the royalty and bonus payment on 1.4 acres .</p>
<p>1.4 acres can easily be drilled around. Many examples are documented on well permits on the PA DEP web site. There is no set back requirement for the Marcellus layer since it does fall under the conservation law. (above the Onondaga layer)</p>
<p>I would ask for a no surface agreement. </p>
<p>These is no state minimum in PA. The existing law did not define royalty and hence the court throw it out. The legislature has not bothered to amend the law. It is probably most important to have a cap on deductions of $0.80 MMBTU. Without a cap the royalty rate is somewhat meaningless. There were situations in mid 2016 where landowners were actually paying to have the gas removed.</p>
<p>A reasonable agreement would be 18% royalty with $0.80 MMBTU cap on deductions. In practice this might yield 10% on the point of first sale. </p>
<p>But again 1.4 acres has no bargaining power. Probably most important to get a no surface agreement. </p>
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<p>Hopefully your neighbors with more land are savvy enough to talk among themselves and get a bundle of property of 640 acres or more.</p>
<p>Be careful many attorneys are willing to help but know very little. </p>
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<p>This is based on first hand knowledge of thousands of acres and many leases.</p>