holy cow batman theres a lot to learn...anybody want to share some recent offers, who offered and how much? If not then who should I avoid like the plague?
Replies to This Discussion
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Permalink Reply by Oil and Gas nightmare on
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hey thanks! thats awesome... ok I am in greene county...how many acres did you have and did you have a land unit or did you go at it alone? This helps just as much as the advice becasue as I stated on another blog, knowing the actual numbers helps us all maintian some level of a normality in what they are offereing all over the place does affect us all, if you are in a producing area...thats it, not a non producing area but a producing area. I know that different factors change things, with how they access it, pipes, land around you and ll those terms i dont understand yet...BUT why cant we just say ok we KNOW they are getting gas...we KNOW they can sell it for x amount of dollars, that will go up, and we KNOW, they are not going bust on these deals, but infact making money, so therefore could we not say ok we atleast should all not accept less than $2000(or something) AT THIS POINT, in the proven areas? And I know the objections of well thats not your property that prodced such and such, and so therfore keep in mind 3 equals 2 pie squared, and the the universe is infinite, so therefore there must be alien life, but instead of all of that can we not agree that at some point a bottom line minimal value should be ...?????? whatever?...ha sorry jim that part wasnt just for you, just putting that out there to everyone!!
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Permalink Reply by S Isiminger on -
Go to "Information" on this site and in the drop down menu select "Marcellus Lease Offers".
Also try http://www.wvsoro.org/resources/minerals_royalty/signing_bonus.html
And: http://extension.psu.edu/naturalgas/issues/leases
Best of Luck! Everything is negotiable.
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Permalink Reply by Tom on
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You are welcome Lynn, sounds like we have more in common than “common ground”
Presently I’m 4 hours behind you. Vacationing and working (one in the same for me) in Alaska I’m riding my Night Train in October. Soon I’ll be back in PA and have to ride my XR 1000! Good thing I don’t have a job so I can do my work!
You can’t beat fun for a good time. Helping folks in the Marcellus or any other arena is the most fun I ever had. The only thing I will get out of doing so is seeing the lasting joy of people getting what they want / need! The more a person helps others get what they want, the more a person gets what he needs.
My Charity involves the most valuable commodity any of us have known as TIME. I spent a lifetime of serving others coaching wrestling and helping kids and their families identify what makes them happy and successful.
Some argue that teaching and coaching is a paid profession, and I agree, but when you look at those paychecks, it’s charity work. Very gratifying charity work. Helping kids and their families identify how to be happy and successful and take advantage of equal opportunity, not equal or generational entitlement is a kick.
You asked for more advice and here ya go. Remember, I knew nothing about this a year ago. Guess I finally got paid for coaching because some of my advice came from a student wrestler that went to college and became an O&G professional and works for one of the larger O&G companies in a sky scraper out west. (We didn’t sign with his company) but he and his friends me. Cool.
I believe there are more good people than bad in any realm but one must use a certain amount of trust. “Speed of Trust”. Again I look for the winningest models in whatever arena. You need to trust the folks that have fun in their profession and in this instance it’s making money for all involved. Money for you, the gas company and anyone else in the process.
Luck is what happens when you work hard and smart. I lucked out and found a consultant in the field that knows how to identify the optimal performers both in gas companies and the action people in every step, eliminating stress and BS.
This is a major concern. When I have a major concern with my automobile or my Harley, I go to a reputable shop with a record of solution performance. I ask them to include me in the process as they diagnose to see what the cost will be and ask them to call me when the deal is finished with their guarantee.
5, 10, 15% of something is better than 95, 90, or 85% of nothing. I don’t care if a gas company or drilling operator is from PA, Texas, or Alaska, get a professional to represent you and don’t agree to pay them one dime until they perform by getting you all your lease agreement money up front, if that’s important to you. I gave my guy a year and he got it done in three months from signing on as my representative.
He allowed me to take the agreement to an attorney of my choice before we went forward.
Most importantly you need quality contract that protects you. Remember “LESS IS MORE” but written by wisdom from success, and gives you choices as you and the operator agree exactly where to prepare the pad, rig shows up, and then the champagne. There should be more to party about later. ;-)
I do not recommend calling or walking in on your own. You can choose to but that is usually (by watching other land owners) around SW PA, a sign of impatience and an expensive and lengthy education with marginal results.
I don’t think it would show much class or even be fair to share my family’s deal publicly, but one contract we turned down offered a similar bonus as up and over in NE PA and New York and a %20 royalty.
The contract was nearly 30 pages long and so in favor of the gas company it made me sick, that they would do that to folks. In reality it could have meant as little as 9% and a nightmare of legal problems.
It was like, “If ifs and buts were candy and nuts, we would all have a Merry Christmas!” Sad for the average person who has the confidence to go it alone. What if the deal was his or her everything?
Remember that this is business and some people are not true leaders. True leaders share your dream which led to your vision of getting this done correctly in a timely fashion.
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you should totally be a guru!!! I think you phrasing is brilliant, funny and wise "over analysis causes paralysis" love it!!! going to fit that in every conversation i have this week. Do you happen to know or anyone out there know...is their a title tracking company that you could recommend or a person that will do a kick butt job for a fee? I have a long huge family history there and need, some one who can go to the court house all day and connect the dots for me. I dont live in Green County, too far away to drive there everyday for the next two weeks. Or trust me I would have done it!!! and when you approach, gas company do you wait to see what they are offering or its it good to go , look I am excited to work with you and thanks for your intrest , I would like to tell you right ot the gate, I am not looking for a low ball offer or can you present it with an number you wan tot get , instead of ok they offer $1000, I say no, the offer $1500, I say no...and go at that all the do long day or do they respect a "look buddy I want $4000 an acre, get to that and we have a deal" or is the cat and mouse game part of what you have to do? Did any of that make any sense? I know I CAN do anything I want but do the gas companies appericate a cutting to the chase mentality, like I want $4000 and you better be damn close that if you want me to sign...AND people out there this is asking about attitude not wether or not the gas company has other chioces, I know the do. I am asking, is bold better?
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Permalink Reply by Two Dogs on -
Lynn, you like to gamble? You are surfing the wave coming into the beach. At some point you are going to hit the high point then ride the wave down, it will be exciting. With your land or mineral interest you are in control, just like the surf board, it is up to you to make the right decision. Sometimes you never catch the wave and are left way out from the beach to catch the next wave.
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Permalink Reply by Tom on
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A guru! Ha! I just know I don’t know everything. I love to win and help others do the same.
Back to the coaching aspect, when we would win state as a team or after a kid would win state, I always expressed that I knew it wouldn’t be the most important thing they ever did in their lives. At least that was my hope.
The point is what they learned in the process was way more important than the win. The lasting impact of helping each other is huge and everlasting.
I know a guy that would not charge you a fee for anything unless he won a top notch contract with one of the bigger top notch companies. He is a solution person in his own right, in Greene County, and that of others.
The comment below regarding $4,000 per acre and I’m not sure what was meant by 3/16 royalty but the front money is getting realistically closer to “what I’m a sayin”. You never know you may get more or a little less but the contract is where it is at regardless of the royalty amount however %16 would be excellent if the addendum was concisely in your favor. One of the most important is obtaining a gross versus net royalty. a “True Gross Royalty” not any other.
Heck, if they had promised in a contract to drill with in one year I would have given them our property! That just isn’t the norm. You have to work with people from reality. I’m sure it could be done but you would have to be a “Heavy” in big company probably.
I watched a person negotiate their own for 2500/20 and I felt so bad because he should have had, in my uneducated opinion more on the down and again, those 30 page contracts are like a bad insurance company where one page tells ya what you have and the others negate the initial language with the truth. Those people are bad. Like the contract I told you about with the $5,000 Plus down and 20% royalt that really could meanas little as 9%. So Sad!
I would love to accept your offer of working with me but that would be wrong. You need to have an experience like my family is experiencing without having to freak out about what might happen next. My guy over delivered and under promised for sure.
Cat and mouse, power and control over others, and I know so much, is where the majority spends too much time. (At their OWN EXPENSE up front and or later) I’m not sure bold is the correct term either. It has it’s place but I do like the “cutting through the chase mentality” statement you made, unlike my embellishing rants!
There are no old bold bush pilots (airplane) here in Alaska thats for sure.
So you know, the truth about taxes on your down money, they suck. Anyway the money you pay a consultant/attorney is NOT part of what you pay on your taxes. You pay and report only on the money you receive after as income. Roughly an ouch of 1/3 depending on the amount so don’t spend it! Remember, only worry about the things you can conrtol which includes your actions!
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Dont kill me here but when you say could be as low as 9% what do you mean? Like they got "20% but it was net or, there are protections they didnt get in the lease and reality is they are going to be losing most of that 20% in other palces? thanks agian, i love it...help me understand that part a little better... ANd yes any one you wan tot recommend I would LOVE to know about...I know its up to me to make the wisest decision I can but it doesnt hurt to talk to a million different people to figure out if thats the right way to go :)
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Permalink Reply by Tom on
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Yes they were not aware of transmission, processing, and other fees that the company forgot to write or explain in lay terms.
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