Replies to This Discussion

Permalink Reply by James Young on December 4, 2015 at 7:50am

Hello,

Can't figure out what you're saying here $1500/15% royalties on a 5 year lease, correct? what is the 20% and 80% (they pay 20% now and 80% after old lease expiration date?) sounds pretty decent compared to what SWEPI has been offering.  We had a similar top lease deal with East Resources and they formed a unit and put in a pilot hole, BEFORE the expiration date, so our old lease took precedent, and the "80%" never happened.    Deductions are the killer in any lease.  we had an old one (12.5%) and are in a producing unit. In real terms we were getting 11 % when it started 3 years ago, and gas was $4.00, now we are getting 8-9% as gas is at $1.85. The first 2 years we were charged with "compression deductions" only, Then "transportation deductions" came along in 2015.... they are 5x higher than compression deductions...so good luck.  (You found competent and knowledgeable council in Tioga County?) 

Permalink Reply by Chris King on December 4, 2015 at 11:40am

You guys are doing a lot better than we are.  We're just north of Williamsport with several well sites under construction.  Inflection is offering $500 and 15% and they're not negotiating. Seems like they're the only game and town and they know it.  They're sending out letters saying if the offer isn't accepted by the end of the year, the offer will be withdrawn.

Permalink Reply by INVICTUS on December 4, 2015 at 11:50am

My advice (and it's with real experience in this area) is this:

"Thank you for the kind offer. And your offer is appreciated!

However, at this time I will decline the offer."

Unless you are in dire financial stress. Take the long view.

Again, I stress....experience tells me to tell them "no thank you".

(always be nice, until being nice doesn't work).

And don't sign anything with an arbitration clause it. Ever.

Permalink Reply by 0ym9x5ag7ury2 on December 4, 2015 at 2:22pm

INVICTUS

    Call or email me ASAP, we have a solution to the Arbitration Clause. In fact we probably have a Complaint that you can be added to. 

Permalink Reply by Thomas Lilli on December 4, 2015 at 1:50pm

$1500/acre. 15 % royalty. 20% now, the remainder if my current lease does not get developed in the next four months. Five year term. At the end of five years, I get $1500/acre immediately to hold for three more years.

My attorney is in Clarkes summit pa.

Permalink Reply by 0ym9x5ag7ury2 on December 4, 2015 at 11:42am

Talisman?

A $1,000 an acre lease will flip nicely to a drilling company for a real profit.

Permalink Reply by John F McClelland on December 4, 2015 at 1:40pm

I agree with Ron and Invictus. Don't rush to take an offer and instead look at the long term benefits of insisting on higher royalties and no deductions with bonus and lease length somewhat secondary. The gas companies already have a large investment in many areas and current wells are declining in production. Gas companies eventually will have to lease and drill more in order to sustain production. If all of us that can politely decline inequitable offers, landowners will significantly advance their interests. Keep in mind that if only for instance 20% of the acreage a company wants to develop will not lease, the gas company has a real problem. Also note that to fully realize their infrastructure investments, companies need to unitize all of the acreage within their region as has been done in some areas of Bradford County. In townships where significant areas have not yet been unitized, owners acting together are not at the mercy of the gas companies. With this in mind, the Mosherville Alliance landowners group was organized in Wells Township of Bradford County. The more township landowner groups that can organize and make their presence known, the better off we will all be in the long term. Unity is the key to realizing our fair share of our gas resources and without it we will be at risk of being exploited.

Permalink Reply by Thomas Lilli on December 4, 2015 at 4:40pm

Yes

Permalink Reply by Robert Amadio on December 8, 2015 at 10:38pm

Hello zip code 18829! We're in Orwell twp for the last 11 years no lease no interest of late.  

Permalink Reply by Barbara on January 12, 2016 at 11:02am

There does not seem to be any new leases being recorded in Bradford County for 2015, did you ever sign with Talisman and did they pay you?  I hope you don't mind me asking,  it is just that we signed with them in 2014  and right when then payment was due they returned the lease.  We were told it had to do with them being bought but who knows!  Thank you and I hope this lease worked out for you if that is what you wanted.

Permalink Reply by Ken Gibbs on January 12, 2016 at 12:43pm

Barbara, we did just sign the lease proposal. Payment is not due for a few months. If you like, you can send me a friend invite and I can let you know when and if they do.

Permalink Reply by John Pilkin on January 12, 2016 at 12:58pm

I am located in Orwell Township and we have not had any lease offers whatsoever....I believe there is some type of geology anomoly....very disappointing....

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