Replies to This Discussion

Permalink Reply by Sarah A. Conchewski on July 18, 2011 at 4:54pm

How long ago did she sign?  We had the papers for a while with a lawyer I'd say about 5 or 6 weeks.  When I called yesterday he said they weren't leasing in our area at this time.

Permalink Reply by Robert K. Shumway on October 21, 2011 at 3:29pm

Rob, I have been watching the postings, but have been hesitant to post information as of now. Having said that, I would like for you to know, for the past 2 years I have been working with a landowner, who owns 600 plus acres, located in Franklin Twp., Bradford County.  Our goal is to create a market for available land, not leased to date, or where present leases are running out, wherein the landowner will have better options for royalties, bonus monies on leases, or using the lease money to reinvest into working capital for additional percentage payments, during the marketing of gas.  Our last meeting, which was Monday 17th, was with a drilling/investment/Petroleum based company out of Dallas, TX.  We feel this meeting will bring us to a point of opening discussions with land owners.  We already have the pipeline infrastructure to work with, that most of the gas companies do not have.  With our 600 plus acres there are an additional 400 acres avilable to us from others, who have an interest.  The Dallas based company would like to see if we can come up with additional acreage, which we feel is possible, when we have a presentation ready.  For those who can be patient going forward, I think we will have something, that is going to work for all interested parties.  Especially in and aroung the Bradford County area.  Once wells are drilled, there has to be a means of moving the gas.  We have that means.

 

 

RKS

Permalink Reply by Tom on March 25, 2011 at 3:27pm

Interesting, my lease was non-strata specific but when my land was unitized is was done stata specific.  In other words the registered unit reads to the bottom of the Marcellus.  Since the lease's primary term has expired I'm assuming everything below the Marcellus is no longer under lease and if they want to drill below they need to re-negotiate a new lease.  Would that be true?

Permalink Reply by NY Gas Rights on May 25, 2011 at 2:06am

No Tom, Thats would not be the case. You leased the right for as long as you get royalties regardless of what depth. The current permit (state requirement) states the formation, but your lease (private contract) does not. In 30 years, the company will pay you shut-in royalties while it re-permits to a different formation and you will get 3 more decades of royalties. Stop trying to figure out a way to burn the gas companies and let them do their work. You will be rewarded for it.

Permalink Reply by scott brion on March 22, 2011 at 6:09am

Hi Pam,

 

I am a buyer of land and mineral rights, and the answer is that it is likely that you will receive a lot more money in royalties overtime, but there is considerable risk as to the timing as wells may be drilled now or later depending on how the operator develops your lease.  You are in good shape being in Bradford county with a very good royalty rate.  Selling your land and mineral rights makes most sense for people who are focused on immediate or short term income or who are very risk averse.  The classic example is a retiree.    

 

As to expected royalties, It is very difficult to estimate royalties from one property as there are many variables and the range of payments to a landowner in your situation will vary widely.  On average royalties in bradford county will be strong relative to other areas in the state, but you could see little or no royalties in the next 5 years or you could have extraordinary royalties (well into 6 figures.)   A little discussed fact is that gas price is really not very important.  The most important variables are when wells get drilled, how many are drilled in your production unit, unit size and how much of your property is included a unit.   These variables typically are not considered in the royalty calculators that I have seen.  I can tell you more about your property based on your location, lease and drilling activity in your area.  Feel free to contact me if I can be of any help.

Permalink Reply by hunter777 on March 22, 2011 at 7:41pm

Here in neighboring Susquehanna County there have been actual amounts per acre of about $1000/acre/month at the start of production, and between $200-300 after a couple years.

 

There are lots of variables:

 

Whether it is a horizontal or vertical (Horizontal production may be in the millions/day but a vertical may be only a tenth of that)

Chokes on the well (and changes in the choke)

Gas Prices (which have varied from $3 to over $6)

Shut-in time on the well (may not produce all of the time)

 

Royalty percentages (between 12.5% and 20%)

 

I'd definitely keep your property, and rent elsewhere if you need to move.

Permalink Reply by Pam S on March 22, 2011 at 10:04pm

thanks so much!

Permalink Reply by hunter777 on March 23, 2011 at 10:35pm

$5 per day = $150 per month

That might be a reasonable average over 12 years.

 

What I quoted were actual values, but the wells in Susq. county have only been producing for a couple of years.

 

Just trying to help.....

Permalink Reply by Michael Antrim on March 28, 2011 at 10:34pm

What does "Chokes on the Well" mean?

 

Do they squeeze down the prodcution amount on the well on purpose? 

Permalink Reply by Barbara on March 29, 2011 at 1:01am

'they' can do anything they want to control how much is on the market.  a lot of this is going to be exported, too...hence the big construction at the docks on the coasts...AND they can wait years to open a well....as well.  'they' are the puppeteers.....

i do not know if this is what 'chokes on the well' means, but it sounds like you are right.

Permalink Reply by melissa humphrey on April 13, 2012 at 3:48pm

the 1k 1st mo was from 3-5 months prod.

Permalink Reply by marilyn ascani on March 28, 2011 at 3:50pm

What do you hear about the Northeast section of Sullivan County, we have 200+ acres which borders Wyoming County and Bradford County.  They are saying that it will be 2014 until any royalties will be paid in those areas and that they are drilling and capping the wells they are now drilling just to have the work done before the lease expires.

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