This is in Finleyville near Trax Farms on the border of Allegheny County.
Probably best to take the offer. EQT is THE game in that area, and they are active.
will they remove the enhancement clause because everyone I have spoken are of the opinion that no one will do a lease with no enhancement clause
I really believe that the O&G co.s have done all the calculations,figured up what it cost them to lease/build pads/drill/frack/process/transport,etc.etc. and in all the calc's they figure on paying 12.5 % royalties,either by HBP deals,or by being able to deduct all these costs from the landowner . whether it's in the lease or not. All their bottom dollar ,in the page figures. that they want to show their investors depend on them not paying any more than 12.5 % royalties. So whether you have an old HBP 12.5 % lease ,or a newer 18% lease, in the end, it will probably in up only 12.5%. Or there abouts.
Rice is paying $6K/acre & 18%.
Range is Close to that. Depends on location & acreage.
Just finished my phone conversation with EQT. Asked them for $4k per acre and no deductions and they told me they would let me know in a couple of weeks.
Thank you, I didn't talk about the 16% since I am asking for no deductions. I would go for 14% if they do no deductions. One does not have any control on the deductions and it's very upsetting to see them come out of your monthly check.
I am well aware that Landman can read. I would even consider a couple of them as my friends. I don't communicate anything on this web site that I didn't already tell the Landman over the phone. I am honest person and tell it the way it is. This is a business transaction and both parties will sign if they both benefit from the contact. With that said, the going rate is important and this web site can provide that information since signing bonus are not recorded in the court house.