We are due for lease renewal NEXT MAY not the current one coming up.
Our property lies mostly in Beaver County (near airport).
Went to a meeting maybe a month ago. Range offered all of us $3500/acre signing bonus and 17% royalty. They said they are offering us more than last lease so they could sign us up early as they are attempting to show a pipeline company that they have all the leases so that the pipeline company will put the infrastructure in place.
The kicker is they will only pay the signing bonus spread over the 5 year timeframe (1/5 a year) do to he fact of them being land rich and cash poor right now- can't sell gas till infrastructure in place to transport. ALSO if they drill at year 2 you would not receive the 1/5 of your signing bonus PLUS the royalty, you would only be guaranteed your royalty with a guarantee of $100,000 paid to you within that year. So if I was supposed to receive a $100,000 (1/5 of signing bonus) that year plus $20,000 in royalty for a total of 120,000 that year I would only be paid $100,000! So essentially they would short me for that year alone the $20,000 of signing bonus! ALOT of us were up in arms but they said they have a ton of people signed so if we don't agree then they will essentially drill around us and not renew a lease...mind you we have well over 100 acres.
The other thing that has happened is Range Resources has contacted a ton of attorneys in the area and Range will be paying them $50 acre to get the paperwork done so now the landowner will not have to pay out of pocket. They presented it as if they were doing everyone a favor! This includes the lawyer many of us used in years past who we really trusted! Can you say CONFLICT OF INTEREST!?
Not sure how to handle this...Range has essentially gotten rid of all the competition since they have virtually all the land locked up.
Well said, Todd !
I suspect this property is near the Pittsburgh Airport.... no Range leases I know of North of the Ohio river.
Terri, PLEASE..... Listen to Todd's advice ! He knows what he is talking about ! God Bless, Nancy
I wanted to message you privately concerning a question concerning lease...would that be ok?