Elderly mom w/ lease

mother lives in Fla. & has lease now with Triad Hunter ( was Virco )for her property in Ritchie Co. W. Va. Recently contacted by Triad asking to sign a lease modification which would allow them to horizontally drill one "leg" into our two currently producing wells. The "pad" will be on another's property. I want to ask for some flat "bonus" for allowing the Horizontal drilling. They are saying for us to throw out a figure. any idea how much to ask per acre? Don't want my Mom to be taken advantage of. Thsnks.

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Permalink Reply by Alan Bowers on March 26, 2014 at 1:08pm

You can get not only a "Bonus Payment" but also get better terms into your Oil and Gas Lease.  As an example Attorney Jesko, who had been working with landowners that had tried to get into the ALOV group but were Held By Production, was able to obtain better terms in an existing lease and a bonus payment.  Unfortunately for landowners, after doing this many times so successfully, it was reported back that he took a position with a firm that represents Oil and Gas companies.  They couldn't beat him so they hired him. A better royalty %age, Bonus Money, and better terms such as protections for water have been obtained in the past.

Would suggest you consult an Oil and Gas attorney with experience to assist in the negotiation.

NARO might also be able to give you some leads, http://www.naro-us.org/Appalachia .

Another source for info would be Robert Hart out of Charleston WV.  He was a speaker to members of ALOV at some of the meetings before the lease signing with CHK.

Permalink Reply by Land & Mineral Management of App on March 26, 2014 at 1:40pm
You could also call or email Land & Mineral Management at 3045457644 or tim@lmma.com
Permalink Reply by The Hiker on March 27, 2014 at 1:08am

Susanne:   Beware of "Land and Mineral Management" Companies advertising their services to "elderly" people on this forum.   Oh boy!   (and especially when GoMarcellusShale prohibits this type of behavior!)  Get Mom a reputable oil/gas attorney who will work for a fee and not try to get a piece of the hen house lol.

Her problem is a very common one in the area, and Alan is entirely correct when he says there are better terms, bonus money and royalties on the table.

Permalink Reply by Nancy Mosley on March 27, 2014 at 3:02am

How many acres? The larger the acreage the more they are willing to pay. I guess this is in Clay or Union districts where all the activity is. A few years ago I was advised to ask for $400 an acre to modify a lease to allow pooling. If you need the name of an attorney, I have used Kyle Nuttall on this forum. He practices law in the northern WV area. You can find him on this forum or Google Kyle Nuttall attorney to find him. 

Permalink Reply by The Hiker on March 27, 2014 at 8:31am

Just to give you an idea of what some o/g companies are willing to pay to correct this.....although it depends on where the acreage is, how large, and how "hot" the area is, etc....Antero paid $3000/acre to many folks in NE Noble County/Ohio to fix the pooling issue, and Eclipse/Oxford is offering $1500/acre to do the same.   It is a hot area, but this should give you some scale to consider. 

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