Snyder Brothers Marcellus Lease - GoMarcellusShale.com2024-03-28T16:26:16Zhttps://gomarcellusshale.com/forum/topics/snyder-brothers-marcellus?feed=yes&xn_auth=noYou have a lot of good questi…tag:gomarcellusshale.com,2011-10-16:2274639:Comment:1802622011-10-16T21:56:35.079ZSam Douglasshttps://gomarcellusshale.com/profile/SamDouglass
<p>You have a lot of good questions.</p>
<p>First remember good things come to him[her] who waits.</p>
<p>Suggest that optimum terms are $5000/acre bonus for 5 year lease [$1000/acre/year] signing bonus with some of it paid immediately on signing for your time and trouble. You may not see any money after that. Landmen come in waives signing as many as they can at one price - disappearing only to come back again ... and again.</p>
<p>Every parcel is important to them - large or small. Some…</p>
<p>You have a lot of good questions.</p>
<p>First remember good things come to him[her] who waits.</p>
<p>Suggest that optimum terms are $5000/acre bonus for 5 year lease [$1000/acre/year] signing bonus with some of it paid immediately on signing for your time and trouble. You may not see any money after that. Landmen come in waives signing as many as they can at one price - disappearing only to come back again ... and again.</p>
<p>Every parcel is important to them - large or small. Some advantages are gained by working with your neighbors - strength in numbers, but a critical small parcel does well. With tight formations from which they literally have to blast the gas loose, it is not possible to drill holes around an unleased property and get the gas - at most very little of it.</p>
<p>Companies like Range say they already have enough land to keep them drilling for 75 years.</p>
<p>At the end of primary term perhaps only one well will be drilled in a large unit [that may only include a small portion of your land] to hold the lease virtually forever. It may be a while before serious drilling occurs. The bonus could be the only serious money you see for a long time.</p>
<p>Environmental concerns appear to be overstated. Big companies spending millions do not want problems - but occasional mistakes are made. Any problems are highly published but represent a small percentage of the operations.</p>
<p>Operations during drilling are not fun unless you like lots of noise and traffic problems, but these operations should pass fairly quickly. However, expect the operation to come back in the future with more drilling into the same formation and other formations.</p>
<p>Rights of way are a matter of concern and could interfere with property use.</p>
<p>The value of your surface property could be adversely affected as well of the marketability as potential buyers worry about what might happen in the future.</p>
<p>Production from wells should more than compensate for any loss of value to the surface.</p>
<p>All leases are negotiable.</p>
<p>Companies can work with reasonable provisions. Leases vary substantially from company to company and even the same company may have variations in so called "standard" leases. There is no standard universal lease.</p>
<p>If companies drill horizontal wells costing millions of dollars 500 feet apart, it suggests they can only draw efficiently gas for about 250 feet, even after fracking. Perhaps this also confirms that the gas is extremely unlikely that the gas will rise from a mile deep horizontal hole to the surface. You will search in vain for a case where such a thing has been proven to have happened.</p>
<p>Do your homework. Millions of sites exist for the Marcellus on the Web - and it is useful to Google the Barnett Shale to see what has happened after all the horizontal drilling and fracking in Texas. Fort Worth, an urban area is cluttered with Barnett drill sites. Drilling and environmental practices continue to improve. You obviously have an inquiring mind. Use it on the Internet. Penn State site is one with much info and Pitt [particularly as to environmental aspects] and Carnegie Mellon is involved.</p>
<p>It is a fabulous time. Lots of good and some bad. In addition to your own extensive research, after you find financial terms that are generally acceptable, finda lawyer who has some knowledge of the subject to help you. The lease terms are extraordinarily complex and written gbyi and for the producers.</p>
<p>Do not lease minerals or strata that can produce with shallow drilling. Limit what is leased as much as possible. Do not include coal bed gas without investigation. Do not lease storage rights until the the strata for storage are fully produced and agreement is reached as to satisfactory terms.</p>
<p>The word "minerals" does not include oil or gas [with limited exception and subject to the outcome of the Butler case]. Minerals should not be leased as part of a Marcellus, Utica or other lease anticipating horizontal drilling and fracking. Minerals are the subject of entirely different considerations when they have commercial value. </p>
<p>and more</p>
<p> </p>
<p> </p>
<p> </p> PI,
You only want GROSS royal…tag:gomarcellusshale.com,2011-10-13:2274639:Comment:1786592011-10-13T15:05:03.808ZJKhttps://gomarcellusshale.com/profile/JudyKiszonas
<p>PI,</p>
<p>You only want GROSS royalties and no considerations for their operations logistics.</p>
<p>This means no deductions.</p>
<p>Plus, of course, a good signing bonus per acre and anything over 12.5% as your royalty percentage.</p>
<p> </p>
<p> </p>
<p>PI,</p>
<p>You only want GROSS royalties and no considerations for their operations logistics.</p>
<p>This means no deductions.</p>
<p>Plus, of course, a good signing bonus per acre and anything over 12.5% as your royalty percentage.</p>
<p> </p>
<p> </p> hey mike is your company inte…tag:gomarcellusshale.com,2010-10-21:2274639:Comment:537972010-10-21T16:07:04.247Zrichard benderhttps://gomarcellusshale.com/profile/richardbender
hey mike is your company interested in land in ligonier township westmoreland county?
hey mike is your company interested in land in ligonier township westmoreland county? I don't think that will be th…tag:gomarcellusshale.com,2010-10-21:2274639:Comment:537412010-10-21T12:08:27.226ZPIhttps://gomarcellusshale.com/profile/PatrickIrwin
I don't think that will be the case. They have to drill to maintain the lease for the distant future. If they drill, they'll have to use it. Most leases are of the 5 or 10 year variety. From everything that I've read, even if you cap a well, after it is fraced you will lose gas. To me it makes no sense for the gas companies to overextend themselves. I really believe that we will see a boom in leasing as soon as they get the infrastructure in place to move the gas, but then I think it's going to…
I don't think that will be the case. They have to drill to maintain the lease for the distant future. If they drill, they'll have to use it. Most leases are of the 5 or 10 year variety. From everything that I've read, even if you cap a well, after it is fraced you will lose gas. To me it makes no sense for the gas companies to overextend themselves. I really believe that we will see a boom in leasing as soon as they get the infrastructure in place to move the gas, but then I think it's going to get quiet for a while... Producers want reserves for t…tag:gomarcellusshale.com,2010-10-21:2274639:Comment:536942010-10-21T01:53:25.726ZSam Douglasshttps://gomarcellusshale.com/profile/SamDouglass
Producers want reserves for the future - as much as they can get their hands on.
Producers want reserves for the future - as much as they can get their hands on. All the real bidders on this…tag:gomarcellusshale.com,2010-10-21:2274639:Comment:536932010-10-21T01:49:50.883ZSam Douglasshttps://gomarcellusshale.com/profile/SamDouglass
All the real bidders on this stuff are major players. The acreage you describe is no problem. The bidders will be drooling.
All the real bidders on this stuff are major players. The acreage you describe is no problem. The bidders will be drooling. Did you ever play poker? Dril…tag:gomarcellusshale.com,2010-10-20:2274639:Comment:535272010-10-20T02:30:58.340ZInterested Partyhttps://gomarcellusshale.com/profile/GaryWolbert
Did you ever play poker? Drilling here will be "mind boggling" <u><b>if</b></u> other shale/limestone reservoirs worldwide are not exploited to the point of mass saturation of natural gas. There has to be a buyer for all of the oil/gas. As I mentioned previously, once gas companies get enough land to tidy their planners over for 10-15 years, why would they go out and lease land they have no need for at the time? If they can't develop quickly enough, companies may secure land on the cheap and…
Did you ever play poker? Drilling here will be "mind boggling" <u><b>if</b></u> other shale/limestone reservoirs worldwide are not exploited to the point of mass saturation of natural gas. There has to be a buyer for all of the oil/gas. As I mentioned previously, once gas companies get enough land to tidy their planners over for 10-15 years, why would they go out and lease land they have no need for at the time? If they can't develop quickly enough, companies may secure land on the cheap and hold the land for long term plans or resale, but probably won't pay top dollar until they have rigs to drill and a market to sell it--and they need BOTH. All sounds true, but good thi…tag:gomarcellusshale.com,2010-10-20:2274639:Comment:535262010-10-20T02:18:50.621ZSam Douglasshttps://gomarcellusshale.com/profile/SamDouglass
All sounds true, but good things come to him who waits. This is the landman's first pass. As the infrastructure moves on it seems better deals can be anticipated. But there will be some who can use cash now and they can not be faulted. The amount of drilling yet to be done is mind boggling. It can not be done all at once and it probably is good that things will stretch our for years.
All sounds true, but good things come to him who waits. This is the landman's first pass. As the infrastructure moves on it seems better deals can be anticipated. But there will be some who can use cash now and they can not be faulted. The amount of drilling yet to be done is mind boggling. It can not be done all at once and it probably is good that things will stretch our for years. Mike,
You don't think that h…tag:gomarcellusshale.com,2010-10-20:2274639:Comment:535222010-10-20T02:15:02.487ZKeith Ehttps://gomarcellusshale.com/profile/KeithENoecker
Mike,<br />
<br />
You don't think that having too many acres for sale will lower the bid? If 3 to 400K acres are lumped it would take a major player to bid even 8K. I guess there are Saudi Princes out there with oil money to bid. So, maybe you are right.<br />
<br />
Keith
Mike,<br />
<br />
You don't think that having too many acres for sale will lower the bid? If 3 to 400K acres are lumped it would take a major player to bid even 8K. I guess there are Saudi Princes out there with oil money to bid. So, maybe you are right.<br />
<br />
Keith very nicetag:gomarcellusshale.com,2010-10-19:2274639:Comment:534772010-10-19T16:35:23.676ZInterested Partyhttps://gomarcellusshale.com/profile/GaryWolbert
very nice
very nice