Is this a good offer

I have an offer of 5,500 per acre and 20% royalty for 45 acres in Elk township Noble county.

Its a five year lease with a five year extension under the same terms.

Is this a good lease.  Thank you.

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Permalink Reply by JK on December 13, 2013 at 2:50pm

Is it a gross no deductions lease?

If so then it sounds great.

Of course negotiations can be in order.

Do you have an attorney to help you?

Permalink Reply by Jam on December 13, 2013 at 3:33pm

its gross less the proportionate share of all production ,petroleum excise and severance taxes.

No I do not have an attorney.

What percent amount would the deductions end up being?

Permalink Reply by bo boboski on December 14, 2013 at 12:17am

Looks like your question amounts to:  How much will be deducted for taxes. my lease is like that. No deductions except for my share of severance taxes. Cant figure out what that will be either. Surely someone on here is knowledgeable enough to figure it out? I figure if you own 50 acres in a 500 acre unit,you would pay 10% of the severance tax?

Permalink Reply by Philip Brutz on December 13, 2013 at 4:15pm
Permalink Reply by searcherone on December 13, 2013 at 4:33pm

Perhaps you also want to read this discussion:

http://gomarcellusshale.com/forum/topics/good-o-g-lawyers

Permalink Reply by The Hiker on December 14, 2013 at 2:45am

What company is making the offer?  Magnum Hunter?   PDC?  Whatever you do, read the thread Searcherone quoted above and get an O/G attorney......not the mom/pop divorces, wills, real estate transfer kind of lawyer.   Get a real one that knows oil and gas leases.

Permalink Reply by Philip Brutz on December 14, 2013 at 4:02am

Dick Yoss is a good oil and gas lawyer in your area.

Permalink Reply by Jam on December 14, 2013 at 10:43am

Thanks everybody for the information.

The offer is from Antero sent to me by Turner oil & gas.

I saw higher offers from Antero a year ago in Noble county. I was contacted

and offered more last year, I could not lease at that time, I was in a lease.

 

Permalink Reply by Den on December 14, 2013 at 4:28pm

Not sure he was good for the landowners in Monroe Co.

Permalink Reply by Jam on December 15, 2013 at 3:54am

Den, Which attorney are you referring to

Permalink Reply by The Hiker on December 15, 2013 at 12:01pm

If it is the same one mentioned above....I would suggest you look around a bit further.

Permalink Reply by Jam on December 15, 2013 at 12:40pm

Thank you Hiker, I emailed Flite Freimann to see if he negotiates leases. I live in Pa. so I don't know what current offers are in this area.

My neighbors here in Pa are being offered between 6,800 to 7,300 for a five year lease. 18 to 18 1/2 % royalty with limited cost.

 

 

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