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Permalink Reply by Keith on April 14, 2014 at 5:22am

Brian,

I left you a comment that you may not have noticed.

I've got 74 acres over on Pew Road in Delaware Twp. between the Jefferson McGee and Delaware McCullough pads.  I used Ron McCall out of Ekker, Kuster, McCall & Epstein 724 981 2000.  He was prompt and responsive and seemed very knowledgable. 

I've been trying to get Hilcorp to agree to a total surface exclusion but no luck so far.  My neighbors got $3250 about a year ago.  Hilcorp was later trying to low-ball at at $1200/acre so your offer is probably not to far off.  I can send you the addendem list I had McCall make up if you would "friend" me on this siten and send me your email. I would really think about a surface exclusion if I were you. Owners of smaller parcels get an exclusion due to the size of their parcels so I requeted the same. The McGee pad is very large and is probably going to be there for a long time.  My land is all woods and I really didn't want a 20+ acre hole in the middle of it. 

May I ask you you've been working with at Hilcorp?  I'm guessing it's actually someone with "Western Land Services" and not directly with Hilcorp.

Thanks

 

Keith

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Permalink Reply by Tim Tarr on April 14, 2014 at 12:23pm

 First I'll say I'm in Washington County and You are way out of my comfort zone geology wise.

Try for minimum of 18%. Get a no surface rights clause or at a minimum get a no foreign gas clause along with location agreement clause. Many many things to get, but first agree to $/acre and royalties %.

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Permalink Reply by Brian Maj on April 15, 2014 at 12:26am

Thanks Tim!

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Permalink Reply by james on April 14, 2014 at 2:58pm

I talked to Western Land services today and they said they aren't paying $3000 and 17%, they said these numbers are made up? I also wonder who made the offer. Hilcorp directly or Western Land services?

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Permalink Reply by Brian Maj on April 15, 2014 at 12:25am

James:
I think it's important not to mention the specifics of a deal of another land owner. You can use this information for your own benefit knowing that we are sharing it to help each other and not the company we are negotiating with. I've been advised to use an attorney when speaking with Land Service Companies, perhaps you should consider the same. In conclusion, I assure you the terms I mentioned are accurate.

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Permalink Reply by james on April 15, 2014 at 1:29am

Brian, I'm not saying your offer isn't legit. I'm just saying that you can't trust anything these companies tell you, I have seen a couple other people mention this same offer recently in the same area, so I believe this offer is 100% true. I hope you weren't reading my post the wrong way, I was just ondering if Hilcorp made the offer or Western Land made the offer, we have over 1000 acres of unleased land in Mercer County so updated offers mean a lot to us. Hilcorp is going to be drilling 2 wells accross the road from our property and they haven't even offered us a lease yet? They will have trouble drilling a north lateral since we own almost the entire block north of both well sites.

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Permalink Reply by james on April 15, 2014 at 1:39am

Also, Western Land services has been very unprofessional over the past year or so to us, they made an offer to us of $3000 and 17% last year and before I had a chance to talk it over with my family they pulled the offer. Now they have been saying Mercer county has no other competition and they can lease at any price and term because you either take it or leave it. We will see what happens if another company moves back in the area, I would love to sign a lease with another company just to screw them over for messing us around for over a year, the 2 well sites they have in Sandy Lake township would be very limited in where they could drill if we signed with another ompany.

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