Has anyone gotten a call or otherwise been contacted to renew an expired lease or start a new lease in Tioga Co. ,PA ? If so, what was offered ? RE: bonus, royalties, length of contract, how many levels (Marcellus, Utica, Trenton/BR, etc.). Are they still offering Pugh clauses? Who was doing the offering? Any info appreciated...Thanks, Theresa
Thanks, Thomas...had a call yesterday, gentleman said he wanted to talk, but his schedule was full for a week...we'll see what he has to say :)
I received an offer of $2000/acre for 7 years, 14% with deductions and little in the way of good addendums. I don't think this is good enough with the deductions and little protection. We have until spring on our old "Root" lease with no deductions and great addendums. I see no reason to sigh up with a much poorer lease.
Thanks, Gary...May I ask where (which township) in Tioga Co. you are ? I'm in Liberty township as is Thomas, who answered earlier. Which company is making you offers? I am hearing from Southwestern. Again, thanks for the info... Theresa
offer by Shell. We are in Middlebury Twsp.
thanks again, Gary ..Theresa
From any of the neighbors I talk with, Shell's offers are in this range or lower. No one seams interested in the royalties with deductions and the overall lack of protection in these offers. To take a line from one of the lawyer's ads. It seams the land men are just picking the low hanging fruit, anyone that will sign cheap. If you ask many questions or want a fair price they don't come back.
Just my advice after 35 years of negotiating leases, but Shell is the only game in town in that area. No other company could possibly assemble the acreage needed to drill economically in Middlebury Township. If you hold out too long, they will drill around you. And that will hurt you and your neighbors for a long time. I missed the boat several times early in my career, and those wells still haven't been drilled. But I learned my lesson.
If Shell told me they were about to drill in a unit where I had acreage I wouldn't care if they paid me a penny up front - I'd do everything I could to get them in there. I can tell you from experience - Shell can't be backed into doing things they don't want to do. They are too big, and your lease/proposed well are rounding error to them. You take a big risk when you gamble a well on the exact terms of your lease and ask for more than anyone else has gotten in recent times. There won't be any more leases signed like those old Jackie Root leases - you need to move on and accept that 2016 is a different era.
Good luck with it. I just hope you don't overplay your hand.
Where do you feel the line is between too little and too much. With so many companies taking close to one half in deductions I feel quite strongly on no deductions or at least a cap on the deductions. If we are lucky enough to have house bill 1231 pass that may help.
that's what I worry about, if we get a decent offer, the deductions. I'm not trying to be a millionaire, but I also don't want to give everything back to the gas companies....
Shell has traditionally been better with royalty deductions than most companies. Unless the legislature gives landowners additional legal protection, only higher prices will make much of a difference to those signed with the worst offenders. I just don't put Shell in that category no matter what their lease says. Personally I'd rather have 2/3rds of a well than all of no well. And no bonus either if I don't lease.