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Permalink Reply by Nancy Mosley on February 19, 2015 at 4:15pm

Maybe Noble or CNX/Consol.

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Permalink Reply by Dan Warner on February 19, 2015 at 5:12pm

They won't ask, they will offer, but they'll want you to give it to them.

They may tell you that, since your tract is small, it is not worth much.

That's not necessarily true.

Generally:

Signing bonuses, the one-time payment they offer for agreeing to lease, have surpassed $3000 per acre.

Royalty amounts should be 15% or over.

The initial offer will probably be lower.

I don't know much about that area, but activity is ramping up in Ritchie County, and there should be some interest.

There is plenty more to consider in a lease agreement than just the dollars.  The first lease they will offer will likely be loaded with language that can amount to theft of your minerals.

If you control more than a very few acres, it's probably worth having a good lawyer to work up a lease agreement.

There is plenty of good information on this site, but it'll take some sifting through to get at it.

This link will take you to the Pleasants County group on this site.  That might lead you to some information that is more applicable to your area:

Pleasants County

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Permalink Reply by Dan Warner on February 20, 2015 at 3:30am

I would add that Mr. Hart should be aware of the forcd pooling legislation (HB 2688) pending in Charleston.

Your assertion assumes that "at least 1500 acres in the same general area" are unleased, which seems unlikely in that area, at this stage.

It also assumes that HB 2688 will not pass, or, if it does pass (and it's likely to in some form) that the 'unit area' that Mr. Harts's property would lie in is more than 20% unleased, which would protect him from forced pooling for the time being.

If Mr. Hart's property is force pooled, the 'commission' will set the amounts of 'consideration' based on local historical lease agreements.  Some of these leases may hold legacy terms as low as $500/acre and 12.5% royalty. 

I am currently in negotiations with a landman over a small tract in Tyler County, and I am sticking to my guns for the real value, as you advise M. Hart to do.

However, this should be regarded as a gamble, and Mr. Hart should be aware of the risks.

For the moment, I feel that the best weapon that is available to small-tract owners in WV is to contact our legislators and voice our opposition to this bill.

If it passes, our negotiating strength will be weakened considerably.

If it fails, there will then be time to form coalitions with neighbors who are in situations similar to our own.

 

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Permalink Reply by Donald on February 21, 2015 at 4:32am

Ed I agree, when the leasing was hot in Oh. col co. I was in a group and got 5,800 an acr.20% for just a little over an acr. for small acreage that is the way to go.

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Permalink Reply by Barry D on February 21, 2015 at 3:26pm

Bill,

If they want it, they will find you.

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