Replies to This Discussion

Permalink Reply by Edwin on June 21, 2014 at 4:27pm

There are three law firms working together on this. They have about 10,000 acres now and are talking with quite a few companies now. It is a great deal for mineral owners to get with a group to lease. Anyone with minerals to lease should call and talk to them about signing up. Ask about restrictions for getting out of the group, there are none!

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Permalink Reply by Billie Clay on June 21, 2014 at 5:58pm

Thanks Edwin. Sounds like a plan!

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Permalink Reply by jason irvine on June 21, 2014 at 11:13pm

I'm not sure about that. If you are in those two counties you have what they want and the prices are becoming a little more known. But they may have more pull to get them in there to drill after you sign. Good luck and may all you wells be monsters

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Permalink Reply by Billie Clay on June 22, 2014 at 1:20am

We already have a lease with Chevron with royalties at 18.75 gross at the well head that expires in 2015. We've not received any royalties yet. But about 6 months ago chevron wanted us to re-sign a new lease at 16%. Of course we didn't. Then they came back offering us 18% and $4000 an acre.
Everytime they approach us the royalty and upfront money is higher. But we don't trust them and figure they want to skin us alive with the wording in their contract. We are beginning to think we should hand it off to this to the lawyers with the landgroup. Also. There are powers in numbers..right??

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Permalink Reply by rmc on June 22, 2014 at 1:36am

Does anyone actually have a copy of the agreement for this law firms to represent us?

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Permalink Reply by rmc on June 22, 2014 at 1:36am

Wonder what the fees are?

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Permalink Reply by Edwin on June 22, 2014 at 2:02am

The fee is 6% of the bonus money only. I have signed a copy of the agreement and joined the group. Anyone interested should call the lawyers get a copy and join the group. The agreement basically says anytime you want out you can, if you don't like the lease they come back with you don't have to take it.

      I can tell you they are a ready looking at better offers than 4500 and 18%

      Also beware of wellhead price, that means that you pay all the cost from wellhead to point of sale. The company may sell it at the processing plant, then take cost of getting it there from the price and call it wellhead price.

      Eric Gordon's is also one of the firms with the land group, this is who I deal with. 304-845-2580

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Permalink Reply by Billie Clay on June 22, 2014 at 4:42am

You're right about that "gross at the wellhead" stuff.
I almost forgot about that. A lawyer didn't do our first lease. Another thing, our first lease doesn't say "marcellas only"..and were hearing we're setting on Utica and below that..oil. Shouldn't we have them separately in the contract? I figure since Chevron is bugging us..it must mean they are about to drill..somewhere around us!
Right..?

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Permalink Reply by Edwin on June 22, 2014 at 7:34am

Leasing together is ok if the deal good enough, but should be much better than offers now.  Chevron already has a Utica well in marshall county and rumors are that it is a very good well. So it seems everyone is getting interested in the Utica in marshall county. Marshall county also has some of the best marcellas (wet gas)

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Permalink Reply by rmc on June 22, 2014 at 8:31am

Don't get me wrong the money is nice but the terms in the lease will be the determining factor for me

Permalink Reply by rmc on June 22, 2014 at 8:30am

Thanks Edwin I believe I will give him a call Monday

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Permalink Reply by rmc on June 22, 2014 at 1:17pm

Edwin that 4500. Is that for the Utica only or Marcellus and Utica both?

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