Newbie,please help! Just offered lease for gas rights, Clearfield County, have questions

Hi all,

I will apologize right up front for sounding like a dummy about this! I am just now learning so please bear with me! That being said...

My family knew we had mineral rights (only...someone else owns the land) on roughly 80 acres in Clearfield County that family had left us.

We recently had a landman find us (we live in another state) and offer a deal ... 5 yr lease, $1500 per acre, 15% royalty.

Now, I have to say I am confused about the 15% and how/when that would come into play since we don't own the surface rights. Supposedly they are ready to drill in the area before winter and next summer. I am wondering if the 15% will ever come to fruition in the area? As i said, I havent been in the area for ten years now. Can someone explain to me more about the royalty and if it is likely I would even get that?

As I said, we really know nothing about how all of this works and I am in the learning stages and very overwhelmed.

Can those of you who have expereince with this answer a few questions:

1. who are honest, reputable attorneys in the area

2. Does that sound like a good deal? Is that typical in the area? Supposedly they have acquired many many acres in the area and are all ready drilling in Clarion County.

3. Is it typical in that area for a landman to track you down and offer you a deal over the phone (lease obviously would be sent to me). It just all seems odd to me. What should I be asking. How do I know he's reputable. I have gotten his name, who whe works for, the gas company, address.

Any light you can shed, advice, etc, would be much appreciated!! I will not be making a decision until I have researched & spoken to an attorney but wanted to ask others that have experience w/it as an owner.


Thanks so much!!

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Replies to This Discussion

Permalink Reply by Mike C. on September 26, 2011 at 11:36am
where is it located?  Do you have mineral rights or oil, gas and mineral?
Permalink Reply by ajn on September 26, 2011 at 12:34pm

Hi,

 

Kylertown.  Oil and gas.

Thanks.

Permalink Reply by Mike C. on September 26, 2011 at 12:37pm
the highest I have heard in that area is in the $2,000 and 15% range.  Depending on how large of a parcel you have is how I would proceed.  The larger the parcel the more I would barter.  The smaller the parcel the less I would negotiate.  There are so many title issues in Clearfield that I would move faster than usual.  Try to cap them on a 60 day payment.
Permalink Reply by ajn on September 26, 2011 at 12:50pm

Thanks.

 

It is around 80 acres.  Supposedly they are ready to begin drilling before winter.  Do you know how I would find out what companies are active in that area and what properties are leased or where drilling is taking place in that area? 

Do you know of any reputable attorneys in that area that are familiar with o&g leases?

Thanks!

Permalink Reply by Mike C. on September 26, 2011 at 12:58pm
Mike Yeager is in downtown Clearfield. He does a nice job.
Permalink Reply by ajn on September 26, 2011 at 1:54pm
thanks.

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