I have been reading the old posts on here and I noticed phrases like, "waiting for my ship to come in", "waiting for the big day", and "my share". The tone of the older discussions seem to be ones of anticipation and excitement. So tell me, did your "ship come in"? How do you feel about the choices you made with the proceeds? Was it life changing for you? Looking back, do you wish you would have done something differently either with the money or with the lease? Are royalties everything the landman promised?
Personally, I inherited mineral rights from my grandparents that I didn't know about until the landman contacted me - so it is basically snowflake money. I have less than 10 net acres total over a couple of different counties but the bonus I received for leased acres alone was a life changer for me. With it I was able to pay off debt (and some bad decisions :) ), put some away in an emergency fund and take a little (much needed) vacation. I think I have made the right choices so far but only time will tell. None of my leases have turned into wells yet, and I am ok if they don't because if they are going to be drilled, I'd rather wait until prices come up.
I hope this isn't too personal or intrusive, I just like hearing other people's stories.
You asked if my ship came in. I guess the answer would have to be, A few lifeboats have gathered around and maybe I could say that a flotation device has been thrown my way. A few sharks have been circling me for a few years but I am determined not to let them gobble me up. At first it looked as if our troubles might be over. We almost had to post a traffic cop at the end of our driveway because of so many landmen coming in. Upon investigation we were told our land was not open for leasing discussion. A few years later it was discovered we had been tricked as many of our neighbors had been tricked too. So we had to turn all of the landmen away. But since the first of the year the tricksters were put in their place. And now we are leased and expect to receive a few royalties. Not a big amount but enough that we can live a better and more comfortable life! Oh yes and keep the sharks away too.
The first Royalty Check will be for 4 to 5 months of production. Expect the 2nd Check to be 1/4 of the first.
Everyone that has a Chesapeake well has said the same thing: "The royalties were good at first then dropped to nothing". Nothing is close to the $15 per acre per month everyone at Buck Well 1H is receiving. Buck well is the National Norm, not the exception.
Take a look at what we found when we looked closely at Chesapeake.
Slightly too early to tell if mine was a ship or a smaller troller. I signed on with the only company I could sign on with (I'm in Greene Co, PA), that being the Coal Company who extracted under our land 20 years ago nd so is the only ones able to get under there. The signing bonus wasn't great compared to others since they pretty much are the only game in town and they know it. But it wasn't horrible ($2750/acre), and the deal isn't bad (15% royalties with no deductions). I only own 12.4 acres back there that my mother deeded to me when she sold the farm I grew up on (If she'd have let me buy the farm which was 91 acres, I'd be sitting really pretty right now). I had no idea that I the mineral rights were still with the property, as I assumed, like the coal rights, they were gone long ago, so the fact that I got anything was a nice surprise. They are putting the pads in and there are supposed to be 2 of the 6 going in that will tap my property. I'm happy to wait until gas prices come up and that is what they are waiting on too, though they are moving forward with putting in the first pad.
I would love to know if the Utica is under my property and if it is, that could prove to be a bigger ship than I thought. I'm not sure if the lease agreement I have covers only the Marcellus or deeper shales. I need to check it. If it includes deeper shales, then that forgoes my ability to negotiate a bigger lease/signing price later on. Overall, I'm not unhappy as, like I said, I never thought the property was worth anything and had plans to sell it.