Got an offer from Rice Energy to Lease Wayne Twp Greene County, which I am sure is motivated by their acquiring of bankrupt Alpha Leases. Anyone else getting offers from Rice? Anyone know if they actually did acquire the 27,000 acres of Alpha leases?
Read the following Post, on the Alpha Deal: Sureties File Objection to Rice/Alpha Plan for Rice to Purchase Alpha Minerals; Feds call re-organization a sham
Let me correct you on the Triple Play. Greene County is in the heart of the Rome Trough, which means they have 16 oil and gas plays.
How do you say that, maybe a Quad Quad Play or Deuce Oct-something Play. Here in Ohio we are on the Beach compared to Greene County.
Hopefully landowners in AL, TN, KY, WV, PA, NY, and Canada know where the Rome Trough is, and where they're located in relation to Center. The Oil and Gas companies know where the goods are located. They won't be telling you what you have when the "landman Comes A Knocking".
One more thing. You'll want to read that Rice Lease very closely. They have at least one very ugly version of a lease they have handed out in the past year.
Sign your lawyers lease, never an O&G company lease. Sign and O&G companies lease and I can guarantee that you will "Hate Yourself In The Morning".
Guy, Would you mind sharing your lease offer with us. My lease like many others has expired and I am wondering what amount people are being offered. Thanks
JAM - At this time the offer from RICE's "Landman" sorry I don't have which company he is actually with) and the offer on the Boiler plate lease, which is currently being amended by my attorney. Is on 50 acres $1000 per acre delay per year for 5 years, Which would come to $5000 an acre for a 5 year lease. That is if it were to run its course. The tricky part is what wording in the lease ties up the lease or constitutes "start of production". I am not really sure what legally can tie up a lease? Being put into a unit? What good is that if that unit doesn't produce $ for years? In the ideal world I would like to have the yearly bonus until I cash my first Royalty check. At this time I am not sure what would terminate the yearly bonus, sorry have not gotten that far with my attorney yet. I did however ask the "landman" about only leasing Marcellus or having a depth clause for Marcellus only, which is what I had in a previous lease. He said RICE would agree to a Marcellus and Utica Depth clause. I have not yet countered with a higher amount for both, so don't know if they will go higher for both or not. Sorry for the long version of an answer to your question, but just trying to give as many details that I can think of. Which is ONE of the biggest issues I have with this site or the individuals on here. When it comes to sharing $ amounts no one wants to give out information or they will PM it to each other. SHARE IT with all landowners so everyone can have some idea of what's going on out there.
JAM - How were you lucky enough to get a lease to expire?
keep in mind the above was an initial offer, so I don't know if they are willing to go any higher. I will counter with a much Higher $ amount per acre and see what they come back with. I will post it here when I find out.
This was my second lease that expired the first was a five year with Range then five
years with Chesapeake. They can't drill everywhere at once. It takes time. Thank you for the
detailed information. Rice called me last week to let me know they received my email for a lease and are mapping it out.
Looks like the Rice Lease offers are a cart before the horse situation and a HUGE waste of my time and $$$ in attorney fees... Maybe Vantage will be making offers.
My Chesapeake was due to expire next month, which I was hoping for to get a better lease, but I have been put in UNIT but NO $$$$ yet.
Have they turned right/spudded?
Sorry I Do not know.....Where is that info obtained?? Its GRECOE F / GRECOE 28H
Yes spudded 4 wells but they say units under supplemental review. What that means I have no idea???
Check your lease to see if it requires drilling or royalty payment to continue the lease.
Putting you in a Unit doesn't meet any requirement to hold a lease if they aren't drilling. Only a 2nd Bonus payment, or Drilling/royalty payments can hold a lease from what I've seen in leases over the years.
If there has been no drilling, call Chesapeake and ask them if they are planning on paying you the 2nd Bonus. If not ask for a Release.
You don't want to be paid a royalty by CHK, TRUST ME.
Ron, it is no longer Chesapeake (they sold the Lease to Vantage Energy). Here it the latest info I got from a Vantage land man concerning GRECO F Unit in Greene County Center/ Gray TWP. that I am in. "4 wells have been spud and are being completed off of the GRECO pad. These will completed this year, However the units are under supplemental review" Not sure what that all exactly means? More importantly, What is the chance of me seeing a royalty check in 2016??
I see that you know who you are dealing with. Too bad more people don't know who has come out of the Bad Lands to take advantage of us.
When the word gets out that we are in the Largest Oil & Gas Play on earth, the bonuses required to lease will be much higher than we have seen in the past.