What should I expect, per acre, on a re-lease of my property in Middlebury Center?

We live in Middlebury Center - have 12 acres on a 5-year lease that just expired a week ago. Shell just contacted us today to come out and discuss re-leasing our land. I thought Middlebury Center was a dead zone for re-leases, but I guess not? What would the approximate expectations be, in dollar figures, per acre of re-leased land here?

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Michael,

 I am guessing your offer will be $300/acre with a take or leave attitude. Just a hunch, but curios what it actually will be.

Wow.......that low? ........ Original sign-on was $2,000 an acre. Bradford County areas are still getting that and a lot more.

I know of a person somewhat close to u. Lease expired end of May Shell offered  300/12.5.

He told em to pound sand. They came back in a week and are now talking again...

 

Doesn't sound promising. We signed on initially at $2,000/acre. Not that we need that amount again, as the potential royalty is more the end desire, but $300/acre or worse.........not going to happen for me.

WRT royalties, from what I have learned about production curves etc, your bonus payment may very well be the payday here.

Having watched this from 2006, one thing I've learned is, there is no substitute for qualified and capable representation. Another thing is, G&O companies are on for the long haul.

You are smart to float questions here. I'd call an experienced G&O attorney. It will be money well spent. Clark seems at the top of his game IMO.

Did you have any dealings with Jackie Root or any of the other land group organizers in your area. I knew there were at least two up in there.

  They wouldn't bother if they were not interested, the price is set at what you want it t be. Buy the way I made a post that drew no attention but Obama cut hundreds f thousand of federal lands out of shale exploration, it has the O&G companies raising H so I think the value of private land increased.

..... Obama probably has that excluded fed-land slotted for drone runways.....

 

Barnsville , OH  in Belmont county was paid   $5700 an acre plus 20% royalties. This is a five year lease

 

Joe Livorno

Just talked to someone that took the $300/15% /5y, their old lease  had expired, drilling is all around them and they are already in a 1280a. plot and will likely start getting royalties as soon as pipe is laid ........  mabe not a good time to wait for someone else to come along with a better offer ?  as they said something is 100% better than nothing........ this is not far from you.

ps. look for a lot of plots to resize up to 1280a. and more holes on a pad,  Just saying.

If your lease limits the size of a unit you can be included in to 640 acres, they cannot put you in a bigger one - unless they offer some kind of new lease.  $300 an acre is an insult.  15% royalty won't amount to much either after production costs are chopped out.  Shell should SH or get off the pot.

 Micheal,

 Golddigger is right, 300 is what has been offered to others expiring.Shell did not return with better offer and filed surrenders. What is a fair price is the million dollar Q. 08 nat gas was $12-14 today $3.58.The key is to know what you have. 12 acres they can unitize all around you with you being a island in the middle of a unit.If your property is long and narrow and runs east to west you could screw up plans for 1-2 drill paths.A square 12 acres is not going to be critical.Keep us posted on developments, knowledge is power.Next time post in Tioga county forum so we keep things straight,ohio utica #s are long ways from our dry gas #s.Any rumors on the Gee vertical into the trenton since its very close to you.

perhaps it would be nice to have an explanation somewhere of how to keep things straight by county. I have been reading here for quite a while, and can never figure out where people are, unless it's spelled out in the post. I knew that there were different forums for each county, but not how to get to them, and this is the only feed I get from this site, although I signed up for several counties originally? so confused....thanks for all the info, though!

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