No knowing anything about leasing, was wondering if the offer of $20.00 per acre plus 12.5% royalties is average price. I only own 1/3 of I think it is 20 plus acres...

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Where is this located?

Roane County, WV

Roane County website for GoMarcellusShale

You can go to the above link and join, and ask.

That sounds way too low, both the $ amount and the %. In Ritchie is is 15 to 18 %, and $2000 up. Roane, while farther south, isn't so far away that the numbers should be that low.

Thank you I just joined and posted...

Please don't sign anything for $20 an acre and 12.5 percent royalty
Tim Greene

Do you know of anyone in the lease business who could do us better?

Virtually anyone.

Just be patient. If the area is going to develop, then other players will be coming to the party soon. And if they don't then $20 an acre isn't worth the aggravation of the process. Once a well or two is drilled, then the lease offers should be much much higher.

PS - check www.naro-us.org - they have books to help you understand the business.

Manage your minerals like you would manage an apartment. Keep records, study and be cautious about almost everything a landman tells you.  IF their lips are moving there is a 50/50 chance they are lying.

Lease hounds are paid a commission to lease or are paid "day rate" and they rarely will divulge their client's name. They rare operate as open agents attempting to lease, then peddle that to a company but some do operate as small royalty companies and buy leases to flip to others.  You really don't want to deal with them since the offers will be low-ball from the get go. It is better when they come to you, as then you know they (the oil company) targeted a specific area and will attempt to lease there.

I would say your leases would be better marketed through an open auction system or broker such as www.mineral-hub.com

PS-I don't get any fee for naming that site or referrals.

Tim,

  I couldn't have said it better myself.  Thanks.  Ron Hale

Where my property is, leases that went for $5 an acre one year were going for $3000 an acre a couple years later. No one would make you any offer unless they expected that to happen to yours. Be a little patient and it will pay off big.

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