Approached to Lease Land We Didn't know We Owned - GoMarcellusShale.com2024-03-28T23:51:55Zhttps://gomarcellusshale.com/forum/topics/lessee-payments?commentId=2274639%3AComment%3A773714&feed=yes&xn_auth=noBradford Co, PA? You want to…tag:gomarcellusshale.com,2018-03-30:2274639:Comment:7757292018-03-30T21:21:55.166ZSpike's Kinhttps://gomarcellusshale.com/profile/SpikesKin
Bradford Co, PA? You want to be sure the operator you choose to lease with is drilling and completing wells in the Marcellus and Utica shales. Most standard leases are worded greatly to the advantage of the exploration co. Any well drilled and completed, even a low-producing shallow well, could lock up your gas and oil rights essentially forever, so choose wisely.<br />
If you negotiate carefully and if it comes to fruition, 173 acres in a Utica or Marcellus shale natural gas well could make you a…
Bradford Co, PA? You want to be sure the operator you choose to lease with is drilling and completing wells in the Marcellus and Utica shales. Most standard leases are worded greatly to the advantage of the exploration co. Any well drilled and completed, even a low-producing shallow well, could lock up your gas and oil rights essentially forever, so choose wisely.<br />
If you negotiate carefully and if it comes to fruition, 173 acres in a Utica or Marcellus shale natural gas well could make you a millionaire several times over. Donald, my two cents worth fr…tag:gomarcellusshale.com,2018-03-22:2274639:Comment:7753132018-03-22T23:47:46.168ZBullfrexhttps://gomarcellusshale.com/profile/delmardave
<p>Donald, my two cents worth from someone who has been in a VERY similar situation.</p>
<p>Get a KNOWLEDGEABLE O&G attorney before you do anything else. 157 acres is a sizable chunk of rights, and you will only get one chance to get it right. A good attorney will cost a bunch, but NEVER pledge any proceeds from the rights. Pay your attorney an hourly rate. If you can get all parties on board, the cost will be more manageable.</p>
<p>Sorry....going to repeat myself here.....get a GOOD…</p>
<p>Donald, my two cents worth from someone who has been in a VERY similar situation.</p>
<p>Get a KNOWLEDGEABLE O&G attorney before you do anything else. 157 acres is a sizable chunk of rights, and you will only get one chance to get it right. A good attorney will cost a bunch, but NEVER pledge any proceeds from the rights. Pay your attorney an hourly rate. If you can get all parties on board, the cost will be more manageable.</p>
<p>Sorry....going to repeat myself here.....get a GOOD attorney. Ask around and find one with extensive O&G experience. Then, ask him the questions associated with the info you have received from all the good folks on this site.</p>
<p>I think Bradford Co. is the #2 NG producer in NEPA, and the monies possible with this scenario can be life-changing to a degree, so treat it as an asset, a really valuable asset, and ACTIVELY manage it.</p>
<p>Best of luck to you!</p>
<p></p> Well production will vary gre…tag:gomarcellusshale.com,2018-03-22:2274639:Comment:7750872018-03-22T20:08:34.314Zjustin clousehttps://gomarcellusshale.com/profile/justinclouse
Well production will vary greatly depending on area, completion and need for gas in any given pipeline. I would not lease below the Onadoga formation without a set the family for life lease bonus. The Marcellus( upper and lower, 2 separate formations) and the Utica is just the beginning in NEPA. Companies are currently working to delineate the Rome Trough below the Onadoga which contains many Oil and gas bearing formations, some of which will likely become commercially viable. A good Oil and…
Well production will vary greatly depending on area, completion and need for gas in any given pipeline. I would not lease below the Onadoga formation without a set the family for life lease bonus. The Marcellus( upper and lower, 2 separate formations) and the Utica is just the beginning in NEPA. Companies are currently working to delineate the Rome Trough below the Onadoga which contains many Oil and gas bearing formations, some of which will likely become commercially viable. A good Oil and Gas attorney is a must, preferablely from Pittsburgh or Houston( it will be worth it). Don't sign on the dotted line until it sits well with you.<br />
I have seen estimates of Total Gas In Place as high as 175 BCF per square mile/ times 2 where upper and lower are present.<br />
At 2.50 per mcf that is 1,367,000 per acre of recoverable gas in place, so the percentages and lease language matter. Good Luck and God bless, feel free to contact me if you need any more information. Dave: How old is your lease?…tag:gomarcellusshale.com,2018-03-07:2274639:Comment:7736292018-03-07T02:45:18.484ZDonald K. Taberhttps://gomarcellusshale.com/profile/DonaldKTaber
<p>Dave: How old is your lease? My understanding is that there's a "glut" of gas in the country now and the price of gas has gone down, so companies are not paying what they used to. 'Course, this info came from the prospective lessee, so not sure it's true, but it is true that we're awash in natural gas and have become an energy exporter, when for most of my life we've been a importer.</p>
<p>Dave: How old is your lease? My understanding is that there's a "glut" of gas in the country now and the price of gas has gone down, so companies are not paying what they used to. 'Course, this info came from the prospective lessee, so not sure it's true, but it is true that we're awash in natural gas and have become an energy exporter, when for most of my life we've been a importer.</p> I have often heard the horror…tag:gomarcellusshale.com,2018-03-07:2274639:Comment:7737252018-03-07T01:54:24.813ZDavid Allen Lillyhttps://gomarcellusshale.com/profile/DavidAllenLilly
<p>I have often heard the horror stories associated with the market enhancement clause. My lease has one and it hasn't hurt me, but it is all in the wording.</p>
<p>My lease states that in no way am I to get less with market enhancements than I would have received without (paraphrasing).</p>
<p>My lease is a 20% gross with no deductions.</p>
<p>I have often heard the horror stories associated with the market enhancement clause. My lease has one and it hasn't hurt me, but it is all in the wording.</p>
<p>My lease states that in no way am I to get less with market enhancements than I would have received without (paraphrasing).</p>
<p>My lease is a 20% gross with no deductions.</p> The oil & gas co usually…tag:gomarcellusshale.com,2018-03-06:2274639:Comment:7734832018-03-06T22:38:16.421Zjetthttps://gomarcellusshale.com/profile/jett215
<p>The oil & gas co usually offer a very low upfront payment and royalty %. Royalties are now regularly negotiated to 1/5 or 20% of the gross productions.</p>
<p>I strongly suggest <strong>not</strong> to accept a Market Enhancement clause because this is a way for massive deductions to be taken off of your royalty payments. With this type of clause the co deducts expenses they paid to get the oil/gas sold. Sounds fair but how it sounds is not how it plays out.</p>
<p>The upfront bonus…</p>
<p>The oil & gas co usually offer a very low upfront payment and royalty %. Royalties are now regularly negotiated to 1/5 or 20% of the gross productions.</p>
<p>I strongly suggest <strong>not</strong> to accept a Market Enhancement clause because this is a way for massive deductions to be taken off of your royalty payments. With this type of clause the co deducts expenses they paid to get the oil/gas sold. Sounds fair but how it sounds is not how it plays out.</p>
<p>The upfront bonus payment can be negotiated up, up. Many mineral rights owners have signed for a <strong>whole lot less</strong> than they could have gotten. 173 acres is a great amount to have for negotiating! We had good results from hiring a good oil/gas attorney. We also found that being patient and not wanting to rush into an agreement paid off.</p>
<p>I agree that a paid up lease is much better for the reasons Donald K. states.</p>
<p>Hoping for the best for you!</p>
<p></p> Do not do anything until you…tag:gomarcellusshale.com,2018-03-06:2274639:Comment:7736252018-03-06T22:20:10.904ZFreestarhttps://gomarcellusshale.com/profile/Freestar
<p>Do not do anything until you have found an oil and gas attorney to work with Chief. You have way too much acreage to work with them directly. An oil and gas attorney will get you the highest royalty and bonus Chief will pay. Could amount to the difference of hundreds of thousands over the life of the lease.</p>
<p>Do not do anything until you have found an oil and gas attorney to work with Chief. You have way too much acreage to work with them directly. An oil and gas attorney will get you the highest royalty and bonus Chief will pay. Could amount to the difference of hundreds of thousands over the life of the lease.</p> I"d say at this point, just l…tag:gomarcellusshale.com,2018-03-06:2274639:Comment:7737222018-03-06T20:29:13.380Zbo boboskihttps://gomarcellusshale.com/profile/boboboski
<p>I"d say at this point, just laughing out loud at them, then hanging up ,or walking away would be best. that would show them how ridiculous their offer sounds to you. It would show them that you are not ignorant on the subject.Trust me, they will come back with a better offer. I'm not an attorney,or landman,. but I did stay at a Holiday Inn Express last night.</p>
<p>I"d say at this point, just laughing out loud at them, then hanging up ,or walking away would be best. that would show them how ridiculous their offer sounds to you. It would show them that you are not ignorant on the subject.Trust me, they will come back with a better offer. I'm not an attorney,or landman,. but I did stay at a Holiday Inn Express last night.</p> As I say, the 1/8 is a non-en…tag:gomarcellusshale.com,2018-03-06:2274639:Comment:7737192018-03-06T19:30:03.290ZDonald K. Taberhttps://gomarcellusshale.com/profile/DonaldKTaber
<p>As I say, the 1/8 is a non-entity because of the addendum that says, "<strong>ROYALTY INTEREST:</strong> Notwithstanding anything to the contrary contained herein, every place in the Lease where the phrase 'one-eighth (1/8th)' appears shall be changed to read “FIFTEEN PERCENT (15%)”. As G. H. says above, the "1/8" appears in most agreements because it's the default and instead of changing it to some percentage, they leave it as the default and change it one time in the addendum. So the…</p>
<p>As I say, the 1/8 is a non-entity because of the addendum that says, "<strong>ROYALTY INTEREST:</strong> Notwithstanding anything to the contrary contained herein, every place in the Lease where the phrase 'one-eighth (1/8th)' appears shall be changed to read “FIFTEEN PERCENT (15%)”. As G. H. says above, the "1/8" appears in most agreements because it's the default and instead of changing it to some percentage, they leave it as the default and change it one time in the addendum. So the agreement is not 12.5%, it's 15% throughout.</p>
<p></p> To all who have responded: MA…tag:gomarcellusshale.com,2018-03-06:2274639:Comment:7735692018-03-06T19:23:13.072ZDonald K. Taberhttps://gomarcellusshale.com/profile/DonaldKTaber
<p>To all who have responded: MANY thanks. It is rare to get knowledgeable responses so quickly on a lot of forums. This is obviously are really good forum.</p>
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<p>To all who have responded: MANY thanks. It is rare to get knowledgeable responses so quickly on a lot of forums. This is obviously are really good forum.</p>
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