A guy from Halo Land approached me and said that they was working for Ascent. He offered me $700 per acre, each year up to 10 years, and said that they wouldn't pay it up front. I guess they pay me every year the $700 per acre, and they can cancel any time? He called it a delay rentals.
Is Ascent the only ones out here offering a crazy delay payment. I wanted to see if anyone else was getting approached with the same nonsense? This seems like a bad deal because the price could go up and I am stuck with the $700 for 10 years!!
Lance, Do you have any info on that legislation to allow drilling under interstates? That is big news to us in Guernsey co. Does this mean they no longer need to forcepool the state in order to drill ?
Yes, they no longer have to force pool.... They can include the ODOT acres into a unit.... That is right.... good news for me too. :) You may be able to find more info on this if you google it some how. I was told this by a good source who was on the phone with a state rep. So this is reliable info....
So what I'm hoping for is; now that the state of ohio will be collecting royalties on their minerals under their roads, and maybe state parks, that they will see to it that the deductions aren't allowed to dwindle their royalties down to about nothing. they've done nothing to stop the theft so far for landowners, but if their $ is at stake, We'll see how they like it. OR, maybe the O&G co.s wont do that to them?
I'm sure the State of Ohio will not let the O/G companies rip them off. Maybe it will be a good thing to be in a unit with the State. :)
Halo guy just offered me $1500 an acre for 3 years and I told him to come back to me with $2000/acre for one year and we can talk. It started with $700 an acre for 10 years, and now they are willing to do 3. Just letting y'all know.
Hi Brett, what area are you in?
Eclipse is doing the same thing. One way to look at it is you are getting $7000 an acre (potentially) I am not saying its a a good deal. i am just tring to figure this stuff out myself.
Of course the delayed lease rental is just one small piece of the contract. The devil is in the details of the rest of the lease language.
Yea; its a good deal if they don't drill! But what I've been seeing, is they have been making these offers only to the people who they plan on drilling on in the next couple years. which means they will pay the rental for one,maybe two years, then drill, then your payments stop. so you get a couple rental payments and that's it. that's what your bonus $ will amount to. then they will find a way to deduct this and that out of your royalties, and you wont see much there either. good luck!