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Permalink Reply by 0ym9x5ag7ury2 on May 21, 2016 at 10:19am

Michael,

     Ask for both,  20% Gross Royalty and $6,000 per acre Bonus. That's what Ohioans got in 2011 & 2012, before the scope of the Utica was fully known.

I've read that you can expect 2 gallons of NGLs per MCF of natural gas produced. That number has been as high as 5 gallons per MCF.

Read Range Resources past Quarterly Reports for the 3rd & 4th Qtr of 2015 for SW PA NGL production. They brag about NGLs in PA but very few landowners are being paid for them.

NGLs don't always exist per landowner Royalty Statements.

The Buck 6H Well in Carroll County Ohio, has "BAD" NGLs, so Chesapeake is taking them free. That's going to be difficult to explain to the Court, but I'm sure the Producers lawyers will have to tell some tales to avoid indictments for Fraud.

Ohio's Favored Producer has admitted there are NGLs (except maybe on Dairy Farmers lands) but have used fraud to take them without payment of a royalty. You can expect the same from most domestic O&G companies. They're here for NGLs but not willing to pay a Royalty for taking them.

No ones watching, so why worry about a little FRAUD.

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Permalink Reply by Tim Tarr on May 21, 2016 at 2:32pm

I wasn't going to post on here again but I can not stand for some Anti-Drilling Hack posting his Bulvine Excrement .

Read Range Resources past Quarterly Reports for the 3rd & 4th Qtr of 2015 for SW PA NGL production. They brag about NGLs in PA but very few landowners are being paid for them.

Ron, Unless you can give me "many" names (Royalty owners or Parcel numbers) in SW PA in the wet or Super Rich not receiving payment from Range for NGL's     YOUR A LIAR !!   

 Reply by Ron Hale3 hours ago

Michael,

     Ask for both,  20% Gross Royalty and $6,000 per acre Bonus. That's what Ohioans got in 2011 & 2012, before the scope of the Utica was fully known.

I've read that you can expect 2 gallons of NGLs per MCF of natural gas produced. That number has been as high as 5 gallons per MCF.

Read Range Resources past Quarterly Reports for the 3rd & 4th Qtr of 2015 for SW PA NGL production. They brag about NGLs in PA but very few landowners are being paid for them.

NGLs don't always exist per landowner Royalty Statements.

The Buck 6H Well in Carroll County Ohio, has "BAD" NGLs, so Chesapeake is taking them free. That's going to be difficult to explain to the Court, but I'm sure the Producers lawyers will have to tell some tales to avoid indictments for Fraud.

Ohio's Favored Producer has admitted there are NGLs (except maybe on Dairy Farmers lands) but have used fraud to take them without payment of a royalty. You can expect the same from most domestic O&G companies. They're here for NGLs but not willing to pay a Royalty for taking them.

No ones watching, so why worry about a little FRAUD.

We're receiving Condensate and NGL payments on our statement from Range.

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Permalink Reply by Bob Shaw on May 22, 2016 at 1:39am

Traditional rationale has been to focus on royalty as a priority, less so the one or two time bonus. The thought is that a royalty is for the life of the well when/if it goes into production. Traditional owners share is 12.5%, but many have negotiated over 17%-20%. A well's production life is uncertain, but some last 20-50 years, possibly more. Bonus's tend to be very low these days. Bonus and Royalty are the top of the 'iceberg', but there are many other critical aspects of a lease that can negate both, making a lease not a good value for land owner.

At minimum, you should join or investigate a landowners group in your area. Typically they have a lease example that is going to be much more fair to a land owner than anything an O&G Developer will present to you. If this is a larger piece of real estate, you need to have an experienced O&G Attorney involved.

If you feel pressured by developer to take it or leave it, my advice is to leave it and wait for market conditions to improve.

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