Replies to This Discussion

Permalink Reply by Sarah A. Conchewski on April 26, 2011 at 12:14pm

eog

Permalink Reply by Barbara on April 26, 2011 at 12:15pm

are they leasing many now or are you a holdout from earlier approaches?

Permalink Reply by Barbara on April 26, 2011 at 12:59pm

just heard from friend over that way that this is eog's offer now.......

from the experiences over the last three years, know that this could be MORE tomorrow, and it could be LESS tomorrow............................we are played like fiddles. 

Permalink Reply by Sarah A. Conchewski on April 26, 2011 at 1:16pm

Have never been approached. I called them.  This was the offer - said it was what they were paying now.  I'd be curious to know of someone who has delt with EOG and has a lease in Ridgebury twshp.

Permalink Reply by Erin Carpenter on April 26, 2011 at 1:46pm

I live in Ridgebury and I signed for only $1950 per acre.  In a way I wish I had signed for more but I didn't want to get greedy.  I also know someone else who just signed with EOG for $4000.  If you ask me it's pretty good.  But I'm sure a lawyer would tell you to hold out.  In hind sight I think there are other factors that are more important that I wish we had negotiated.  If I knew then what I know now I would NEVER have given them the option to extend our least for a 6th and 7th year, I would have limited the gas company to minerals at or above the marcellus shale and nothing further below, I would have negotiated to get paid for pipelinem etc.  EOG is getting pretty active in our area so you might want to get the money while you can.  Good luck!

Permalink Reply by Sarah A. Conchewski on April 26, 2011 at 1:49pm

Thanks Erin, I appreciate the feedback.  What is pipelinem, etc?

Permalink Reply by Erin Carpenter on April 26, 2011 at 2:05pm

Oops.  I meant pipeline....my lease gives them permission to lay pipeline on my property without paying me any additional money.  I hear now that people are getting around $12 per foot.  Also, my lease has a delay rental of only $9 per acre per year.  I'm not sure what other leases say but that doesn't sound like much to me.  Basically once they drill the well and it's producing but they can't get it to market yet for one reason or another they will pay you a delay royalty.  You might want to look into that a little.

Permalink Reply by Sarah A. Conchewski on April 26, 2011 at 2:07pm

I will thanks so much for the info.

Permalink Reply by NY Gas Rights on September 5, 2011 at 10:07pm

A pipeline is restricted to removing gas from a well head in a unit that you are part of. Unless you signed awhole separate agreement which would be very very rare to even have it offered from a gas company. If you signed for $1950, then   you have a PAID UP lease with NO DELAY RENTAL owed to you. "Delay Rental" just means you have agreed to lease the exploration rights for your gas, but the gas company is not acting on that exploration but delaying their requirement until they choose.

Permalink Reply by Barbara on April 26, 2011 at 4:14pm

just heard from friend in ridgebury twnshp who recently....last few weeks....leased with EOG ....she has a 4000/acre 16% royalty five year with no option to extend lease. i don't know about any pipeline factors. 

 

all better than most chesapeake leases.....these pay royalties AFTER production costs inc any tax/fees are paid.  can take a chunk out of amt of royalty.

 

remember..............the ROYALTY is the big deal, more than the bonus......and the higher that can be, the better.  lots of EOG activity for over a year along springfield rd between columbia crossroads and berwick turnpike, if you want to take a peek.

 

friend also said chesapeake was not interested in leasing her land. 

 

holding out can go both ways.......................no guarantee waiting will get more lucrative.  or less.  this is why i say they play us..................no way for an individual not in the decision making part of company can know, i don't think.....and certainly haven't met anyone else who ever seems to know anything.....until it happens.  also, remember, VERBAL assurances do not count.................get everything in writing.  good luck....sure has become a crazy world we have here.

Permalink Reply by Sarah A. Conchewski on April 26, 2011 at 4:23pm

Thanks Barbara - appreciate the info.  Every little bit helps.

Can you explain the Royalties after production costs, including any tax fees are paid. What does that mean to me the landowner?  Do most pay royalties after production costs and taxes or before?

Permalink Reply by Barbara on April 26, 2011 at 4:35pm

from what i understand, MOST companies pay as the gas comes from the well..................................so more money involved.  good ol chesapeake writes into the leases that royalties are to be paid AFTER production costs.  i only recently learned that that would include any severance fee/tax.  so we, as chesapeake lessors are rather ripped off.  and my lawyer at the time never saw a problem with that part of the lease.  soooooooooooo you cannot be too careful; read and understand EVERY word in the lease; consult with a COMPETANT gas lawyer............for even the lawyers have to scramble to keep up with what the company lawyers come up with. 

 

interesting world.............no room for trust or assumptions as to the fairness of the company.  i am sure others here can explain as well....as to what their lease does regarding this and as to what it all means to you.

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