Hello to all! Much thanks for this site and all the information. I have an offer, live in southern butler county and have a copy of the lease. I have set up an appointment with an attorney. I have 3 basic questions -- Is this a good time to execute with gas prices low? What is a good deal as far as up front money/royalty %? What is common as far as compensation for the attorney? Thanks in advance!
I got $3250/acre bonus, 18% royalty from Shell in southern Venango county (Irwin Township). Not sure about the attorney fees. Natural gas prices seem to continue to fall for the time being, but see what you can get.
Thanks -- my offer is 3000 and 18%. I have heard that some have leased at a shorter term than 5 years. So I guess there is alot to consider. Thanks again.
How many acres do you have ?
John, it just isn't the upfront bonus and the royalty...it is about the clauses and how they affect the lease term and what is used to extend the lease beyond 5 years. Welcome to the forum and pls take the time to search the lease terms in the search engine here and review some discussions. Even doing that first will help you to determine if you found the right gas/oil lawyer to hire so that you understand what he/she is saying to you also.
And pls do watch a video of the gas production including any diagrams of the flow of the NG from wellhead to point(s) of sale ...that you should do first to get familiar with the process. there are some videos here at gomarcellusshale but I am sure that some here could provide you with some. I know of a link I just posted...I will go look for it.
We got $3250.00-ACRE 18% with no deductions for 5 years and we seen an attorney which cost us $250.00 an hour and it is worth every penny. I THINK ITS A GOOD IDEA TO GET AN ATTORNEY.
Definitely speak with an attorney. Don't go with an attorney that takes a percentage of your lease payment or royalty payment. Go with an attorney that has Oil & gas lease experience and preferably one that has already dealt with the company you are dealing with. $250 per hour seems to be pretty standard for most attorneys out there. We got $3250 per acre, 18% gross royalties, 5 year lease in northern Butler Co.
Thank you for the advice -- attorney retained, knowledge increasing daily. And I feel less and less pressure to sign as a result. Walk to success, don't run to ruin. And my numbers match yours FYI.
Sounds like you are on the right road John! You are proof that this site has much value and can definitely help a person out! Best wishes to you.