great river royalties section good or bad??

 is this a bad royalty deal??

for all oil and gas substances that are produced and sold from the lease premises Lessor shall receive 20% of the sales proceeds actually received by Lessee from the sale of such production, less the same percentage share of all production, severance and ad valorem taxes.  As used in this provision,post production costs shall mean all losses of produced volumes(whether by use as fuel, line loss,flaring,venting or otherwise and all  costs actually incurred by Lessee from and after  the wellhead to the point of sale ,including,without limitation,all gathering, dehydration,compression,treatment,processing marketing and transportation costs incurred in connection with the sale of such production. For royalty calculation purposes, Lessee shall never be required to adjust the sales proceeds to account for the purchaser's cost or charges downstream from the point of sale. Lessee may withhold royalty payment until such time as the total witheld exceeds fifty dollars ($50)

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Replies to This Discussion

Permalink Reply by Jam on February 12, 2014 at 12:39pm

What county and townships is Paloma leasing in? I have acreage to lease in Noble county Elk township.

Thank you in advance, Jay

Permalink Reply by adam sorell on February 12, 2014 at 8:38pm

Martin-Let me know if you get paid

Renee-How much was your offer?? No it isn't Jonathan

Ryan C- They are offering $7000 not $7800

Paloma also wasn't interested in anything plots under 5 acres.

Permalink Reply by Terry giuliani on February 13, 2014 at 4:14am

Adam

My lease with Paloma was for $7200 but $200 went to lawyer in Jefferson county, Steubenville township.  Paloma also paid in about 70 days

Permalink Reply by Renee E. Dorsey on February 13, 2014 at 4:49am

7100/acre + 20 % - my lease was checked out by Craig Sweeney.  Woodsfield, Ohio - Yoss Law Office.  

Permalink Reply by Zack Lantz on March 9, 2014 at 4:12am

I just signed in the last week of last month (Feb) with Paloma on 27 acres, they tapped out at $8000 / acre + 20%, 5 years @ 110%, 30k spud fee + 5k each additional. 

Permalink Reply by scott peterson on March 9, 2014 at 6:23am

Where is your land Zack?

Permalink Reply by Zack Lantz on March 9, 2014 at 6:33am

Belmont county, Richland Twp.

The original offer was $7300 / acre but my lawyer negotiated a higher rate.  And had to be singed & returned before the end of last month.  It was pretty much last minute.

Permalink Reply by scott peterson on March 9, 2014 at 11:07am

Nice job...good luck!

Permalink Reply by Renee E. Dorsey on February 13, 2014 at 8:03am

They may be here to make a quick buck but their history shows that they tend to buy acreage, drill, get production going and then sell it off to someone else to make a profit.   ~gasp~ - that evil word, PROFIT.     Hey, more power to them - that is why most people get into business, to make money!   Maybe the play just got too crazy with all the players and they decided to make an offer to AEP and see if they'd take it.    

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