My deceased father had mineral rights to a parcel of land in Bradford County. . . about which he told us (kids) nothing. We have just been approached by Chief Exploration and Development to lease the property. They propose to pay us 1/8 of the revenues from the sale of either gas or oil. My questions about this proposal are:
I realize question 2. is hard to answer, but we'd like to have some indication of the averages in Bradford County.
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.
Donald, my two cents worth from someone who has been in a VERY similar situation.
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.
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.
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.
Best of luck to you!