Recent Offers in the Marcellus Shale

State your

1. State
2. County
2. Lease Bonus Offer
3. Royalty %
4. Terms (length of the lease)

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Permalink Reply by Joe Smith on December 2, 2010 at 8:42am
CONSOL Energy is working that area as of Nov 2010 and bragging to the share holders in their QTR report Nov 2010 about how they struck the Utika vein under the Marcellus. The first vertical well hit 1.5mmcf. CONSOL states they are moving another rig in that direction to develop. The Belmont land in Ohio is worth money!!!
Permalink Reply by Peter Pagano on November 17, 2010 at 9:23am
I had an offer from EXCO in N.E. Clearfield Co., PA, but just got a call from EXCOs landman telling me that they were withdrawing all offers in "that" area.
Permalink Reply by Kelly Fink on November 17, 2010 at 9:31am
They did the same thing to us back in late spring, early summer. I live in Armstrong County.
Permalink Reply by Daniel Rupert on November 17, 2010 at 12:49pm
There are many factors we must all look at. Please educate yourself and hire an attorney who has O&G lease experience. The Marcellus and Utica Shale plays are huge and will be affecting our states economy for decades and decades to come. The Utica may be more valuable than the Marcellus but it is too early to declare that with 100% confidence. I have a friend who is a geologist and he feels that an average acre in our Marcellus/Utica properties may be worth $100,000. to$150,000. per acre to a O&G company.Landmen have a job to sign landowners for the least amount of money possible...do not take it personally but be aware of this reality!I personally have 30 years experience in the large P&C commercial insurance market as an underwriter and broker. We need to uderwrite our properties and then underwrite the prospective O&G companies as they relate to our properties.1) Who is leasing in my neighborhood 2)Who is drilling in my neighborhood3)What is their reputation - check with people who have done business with them in the past 4)Are they a wholesaler or a retailer... most companies flip for a profit if they have no strategic plans to develop that area 5)Remember this is like playing monopoly...the O&G's are playing monopoly for strategic positioning in the shale plays6)Do not surrender your shallow rights...reserve these so the company will not be able to drill a shallow well and hold the lease forever as long as gas is being produced...the industry refers to this as HBP... and it stands for Held By Production7)Does the company have contigious property in a large area in your county?8) Is there pipeline infrastructure to transport the drilled/produced gas?9)Is there a competitive bonus being offered?10)Is there a competitive term being offered?11)Is there a competitive royalty being offered?TAKE YOUR TIME!!!
Permalink Reply by Sam Douglass on November 17, 2010 at 4:02pm
And in addition to the Utica, there are other shales with promise - and have your heard about the Onandaga. Consider what you want to lease: all the oil and gas or maybe just the Marcellus for now.
Permalink Reply by Craig on November 24, 2010 at 11:09am
The Onondago is, I believe, a limestone formation just below the Marcellus. Based on the geological information I have seen, nothing there - it is dry, except where the Marcellus or other source rock below it has fractured naturally and "bled" into it. This happens often in limestone formations over and under shale that it rich in bio material.

Is there something you have run across to the contrary? if so, I would be interested in the information.
Permalink Reply by Michael Mclaughlin on November 19, 2010 at 12:49pm
You can take care of your HBP issue with a well crafted vertical and horizontal PUGH clause. As a long time oil and gas lawyer, please consult your family attorney for direction before you make an error that could cost you literally millions of dollars.
Permalink Reply by Craig T. Pistner on November 24, 2010 at 11:26pm
Question ; If the gas companies are drilling about a mile down and 2.5 miles horizontal. They have to be going under somebodies land that they are not paying for. How do do you deal with this. I'm not an attorney but your property line is your property line no matter how deep? True or not. Thank You in Advance! Craig T. Pistner
Permalink Reply by Mike C. on November 24, 2010 at 11:45pm
unit declaration is of record. You can go to the Register and take a look at how the unit runs. They can not drill under someones property without being leased.
Permalink Reply by Craig T. Pistner on November 27, 2010 at 2:17am
I don't mean to be ignorant, but what register. And how do I get there.Thanks Craig
31u232c1dthmcPermalink Reply by 31u232c1dthmc on November 30, 2010 at 1:42pm
craig, did you get the email i sent to your web address with the contact info for ARS?
Permalink Reply by Sam Douglass on November 30, 2010 at 2:19pm
2.5 miles may be possible but it is at least unusual as far as I know.
Companies doing the drilling spend a lot on the wells and usually do not want trouble.

Possibly it is a rumor. Likely it is a rumor.

If not, somebody may have a dandy law suit.

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