I was offered an Eclipse lease the other day.

They have changed their offering to an 8 year lease with a bonus of 1k per acre per year.

18 percent royalty with about a 60 percent pugh clause.

I am not interested in a lease with those terms but I thought someone might be interested to hear the offer dejour.

This was for unleased acreage in Monroe county Ohio

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Interesting that they are going 8 years.

How would you feel if instead it was a paid-up lease (you get all 8 years at signing - i. e. $8000/acre signing bonus)?  Just curious.  That, to me, seems like a good deal, if it was an option... although I am guessing your area is good.  But when they pay per year then they can stop paying if they start producing, usually.  8 years is also a long time.

I would feel great about an 8k per acre bonus.

That was not an option they talked about.

They want to lock up the acreage as cheap as they can imo

In Guernsey , Eclipse offered a 5 yr lease with 1100/acre I know they will drill before 5 yrs  they have already drilled 20 acres last yr when we under Gulfport. Don't know what to do

If you can afford to pass. Run as fast as you can!!
Never believe the money is in the royalties. Time they deduct from a no deduction lease.. The real money appeared to be the bonus money. If they want you sister ... Make them get out the checkbook!!

It is hard to decipher your comment.

Are you saying that the money isn't in the royalties, because if this is your contention it is absolutely false and I don't know how you could possibly so incorrect.

Also, are you saying that a no deduction lease will have deductions ?

I get tired of saying this, I have a no deduct lease and Chesapeake has not deducted a penny from my royalties, ever.

Peggy Richardson,

You are only as good as your options and your situation dictates. With almost no information available of your situation it is hard to say what you should do.

One general rule of thumb is that the first pass from the producer is not the best you can do by them. Other than that, if you are not really sure of what you are doing you should hire someone to assist you. 

I am not comfortable with advice from folks who don't use their real name on their account, and even if they do I want to know who I am dealing with and how they came by the knowledge of their advice.

I have some family that leased with PDC the other day. Actually, it was western land services who work for them they said. They did better than what you posted. Not sure where what township they are in, near Sarahsville (sp?) I think. Maybe try calling Western Land?

Eclipse Resources is asking for an 8 year lease so they can get more value when they flip the lease, no other reason.

If the mineral owners want to get rid of the garbage exploration and production companies and the Bozos who run them-- they should never sign more than a 3 year lease and I mean never.

In addition, mineral owners should never accept a draft in payment.  Demand a certified bank check at closing.

I just read the Eclipse SEC 10Q for 1q 2016 and 10K for 2015. 

Eclipse has done nothing but lose other peoples' money. The incompetence chronicled in their reports is truly staggering.

Don't take my word for it.  Read the reports for yourselves:


Do you know for certain that Eclipse is only interested in flipping ? Who has drilled in the area where this land is, Eclipse or Antero, and what difference does it really make ?

My lease was originally with Antero, they traded it to Eclipse who traded some to Chesapeake and continue to hold the balance. None of that matters to me, the lease terms are what they are and in spite of the dire warnings I was barraged with regarding Chesapeake, they have dealt as fairly with me as I could have hoped for.

Regarding drafts, I believe SWEPI just lost a case involving them. http://www.pennlive.com/news/2016/07/ruling_in_natural_gas_lease_ca...

A copy of the decision is attached hereto.

See page 30 of the decision. 

Shell's prior stated legal theory that it can reject drafts for any reason and for no reason at all is discussed.

The lesson is simple: never take a draft folks.


I could be wrong here, but I think a big part of the reason they use drafts is so that in the case of bad title (person who leased doesn't actually own the property/minerals) they don't have to try to recover the funds because they haven't actually been paid yet.  It seems in this case SWEPI just decided they weren't interested anymore because they messed up and leased the wrong area, it had nothing to do with title, which doesn't seem like the right thing to do.  Could be off base here but maybe someone else can chime in.


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