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Permalink Reply by Nancy Mosley on October 16, 2011 at 5:57am

What state?

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Permalink Reply by Dave on October 16, 2011 at 6:06am

that is chevron

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Permalink Reply by Kathleen Elsie Gibbs on October 16, 2011 at 7:50am

Yep Chevron (Atlas) in Westmoreland.

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Permalink Reply by Mike Stevens on October 24, 2011 at 11:42am

I was also contacted by Union Land Resources regarding a shallow gas well lease.

I believe the person said they were representing Chesapeake Energy.

My property (25 acres) is in Clarion county, PA - Richland township.

As noted above, it seems like a fairly low offer?

Any thoughts or advice would be appreciated as I am new to leasing.

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Permalink Reply by Mat B on October 24, 2011 at 11:54am

We were offered $500 but turned it down.  They also made an offer of $575 to the landowners groups in the area.

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Permalink Reply by Mike Stevens on October 24, 2011 at 1:11pm

That's what my offer is, $500 per acre. What happened to the larger lease payments I keep hearing about?

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Permalink Reply by Richard Trusik on October 31, 2011 at 1:27am

A friend of mine in Lawrence county was offered and accepted $3000 an acre and 15%, Shell I understand. A group of landowners got together and I guess there's more clout that way. My question is what is the difference between shallow and deep rights?

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Permalink Reply by Richard Trusik on October 31, 2011 at 5:38am

I just spoke with a rep from Union Land Resources, she told me she was from Oklahoma.  I own 30 acres in Harmony Twp. in Forest county PA. Her offer was $350 an acre plus 12.5%. She told me that they were interested in oil rights.  Doe's anyone have the true picture on this proposal???  I received a letter from them and am investigating, is this the same manner that everyone else was contacted?  Maybe if we all put our heads together we can figure this thing out.

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Permalink Reply by Mike Stevens on October 31, 2011 at 6:09am

My contact with Union Land Resources was a phone call on Saturday, Oct. 22. The person I spoke with said he represented Chesapeake Energy and was interested in a shallow gas well lease. I asked that he send me the documentation and I was told it would go out Monday. I have not received anything as of yet. The offer was for $500 an acre and I believe the percentage was 12.5

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Permalink Reply by Richard Trusik on October 31, 2011 at 6:19am

Thank you for the response. Doe's anyone else have any imput on this?

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Permalink Reply by 3uq96odaochmj on November 22, 2011 at 2:34pm

Shallow rights (surface to about 3 or 4000 feet) have typically been paid at $10-$15/acre in pennsylvania, and at 12.5%.  These wells cost $160K to $225K to drill, frac, and produce.  With reserves on the order of 200 to 350 MMCF, and payout at least 6 or 7 years now due to nat. gas below $4/mcf, the vast majority of these types of wells are uneconomic to drill & produce.  Compared to a marcellus well which has reserves on order of 4.5 to 7 BCF, the high volume makes these kinds of wells much more economic, even at low nat. gas prices, just because of the sheer volumes of gas.

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