Hey! lease offers something to keep in mind

Alot of people think the going rate in their area is say like $2000 and stuff like that...but you have to remember everybody doesnt post on here, there are lots that dont even know this website exsist.  Others maybe gun shy about posting they got lots of money.  You have to pull up new leases in your area... I did and found its more like $4000 to $4500.. I have seen the leases myself, not jsut taking word of mouth.  so the point is, look for yourself before you assume all offers are only what the people are posting for that area.

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Permalink Reply by Mike Knapp on January 27, 2011 at 2:18am

RFS,

 

Most of the time it doesn't have anything to do with a landman "lying".  Some companies have a wide window of what they can offer to landowners.   Maybe landman A talked to a few neighbors and got a few of them to sign at that $2,500-18% rate.  Landman A offered that same deal to neighbors he was dealing with to keep things fair.   Landman B may have no idea what landman A is offering people and his initial offer is lower.  We don't even know if these land men work for the same company!

Permalink Reply by Robin Fehrenbach Scala on January 27, 2011 at 2:28am

Yes, very true.

I forgot to mention that part, that there are very often multiple companies out doing the same thing in the same areas.

Not only that but sometimes different companies have landmen from different agencies working in the same place giving whatever offer they want, regardless of what the rest of the guys are doing.

(Chesapeake is notorious for this. They hire many landmen agencies and let them all loose to do whatever they want.)

Permalink Reply by monica chilcott on February 8, 2011 at 11:16am
who offered her that? and where does she live?
Permalink Reply by Sarah Violet on January 27, 2011 at 2:23pm

Mr. Knapp and rfs ,  Thank-you for your replies. I had a feeling this is what is going on. And " ALL " of your  comments have confirmed what was already going through my mind. I have been doing my research and home work, not relying on just one source, " Trust , but Verify . "  As for posting  " Offers " I always keep in mind that they are just that , " Offers "  nothing is written in stone.  I see the posting of " Offers " here as figures to work off of.  I don't think anyone will know what your final agreement is unless you tell them.

 

Monica , I would like to know  the good  verse the bad  Oil/Gas Companies too.  In my opinion ,  I'm  not so sure it would be a good idea to post that info.  I could have a horrible experience with the same company you have an excellent experience with.  Everyone's situation is different. For me I'm going to look at the whole picture not just at what dollar and royalty amount they are offering. I will also be looking at how well the Oil/Gas Company is willing to work with me regarding all the other details of the lease. And most important , are they going to treat me as  the  land owner, who has something they want, with respect. 

 

I'm so very Thankful for this site. Before I joined I felt like I was totally in the dark, now I'm beginning to see some light.     Thanks to everyone on the site for your input.

Permalink Reply by monica chilcott on January 27, 2011 at 6:15pm
If you try to get your own lease you need to know who is interested in your area...so far not much interest in northern Mckean county
0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on January 27, 2011 at 7:27pm

I am glad you brought this up about some don't post and some are not even aware of this site....

 

as far as the lease rates...shouldn't we consider it also has something to do with the density of the shale and their geological findings?...that is why some areas are offered more than others is what I was told....about how easy to obtain and transport?

Permalink Reply by Robin Fehrenbach Scala on January 28, 2011 at 2:32am
VG, yes, it has EVERYTHING to do with geological findings and lack of data and pipelines and wells already drilled vs. no wells drilled, and every other possible thing you can think of.
Permalink Reply by monica chilcott on February 8, 2011 at 7:16am
what area got offers of $4500  and from who?
Permalink Reply by Paul Martinelli on February 8, 2011 at 8:28am

I would like to see leases setup this way.

 

A set price per acre 1st year.    and the price goes up every year thereafter if not a producing well, until lease period expires.

Permalink Reply by Oil and Gas nightmare on May 14, 2011 at 2:51pm
 The leases I have SEEN with my on two eyes was Greene county PA.  Off the top of my head, as I have them on a seperate hard drive this is what I saw.  One guy 123 acres got $4500, plus 18%..he was super nice and I called him and got some more details.  1st they offered $1500... and less than a week later came back with the offer of $4500.00.  Another gentleman sent me his lease that had a signing bonus with $5000 an acre, i wanna say with 15% royality.  He told me valuable info that in his lease he agreed to allow them to pay the bonus over time, I think 3 payments and he regrets that very much.  He advised me , dont do it.  On 103 acres another family, that sent me their lease got $ 4200ish, however his was a little more confusing to me becasue it had to a lot more things in it, like I was say sotrage aggreements and  I think something to do with the fact that the well was going on his land. Sorry thats not very clear but as I said the lingo was just lawyer-nese, haha.   A gentleman on the same road as me got a lease for $4000 but his neighbor down the road a little farther accept $400 an acre and he was very disappointed.  AND it was with the same company.  the last the I did not see their lease
Permalink Reply by monica chilcott on May 15, 2011 at 2:21pm

still no mention of what companies are buying the leases

 

Permalink Reply by Oil and Gas nightmare on May 15, 2011 at 5:29pm
I mentioned up on the first page of the dicussion but here it is again.. Dominion has 2300acres in Greene county that I have seen so far.  They have the most of it, so i am sure they would like to get whatever eles is out there, tanglewood is getting an offer together for us right now and Chesapeak is also intrested in getting something together, they have to do all the research on the land before they give you an offerin writting.  I am hitting up smaller companies in the area that I think have more motivites to drill Like Rice Energy, or cheif oil I think it is. You have to rememeber, CNX partner with Dominion, so they are the same same if you will.  So if you pull info from the website for the county..I google it greene county pa land records.  You put in a name of either a company or a person, and you can find who has leases around you and for how much, if you contact the people on those leases.  You can also go to PA dep webpage and serach it by county and township and it will show you what you need to know as well.. Hopefully that helps you btter :)

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