I have land in Southern Mercer Co. and have been looking for some help with trying to understand all of this since nobody drills near my township. I have been reading the posts here for a while. It seems that some people sharing genuine and thoughtful input are "land group organizers who may or may not be fee-based lawyers who might or could be contractors? But definately, and not actually a landman, or could be just concerned advocates, helping get everyone together so that everyone sees the most from all of this.

Has anyone else found this to be the case? It's Confusing.

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JIm Bottom Line Your a Vulture Flipper

Schnoozie
friend me so we chat you are in shark infested waters

I pretty much consider all waters shark infested when dealing with items such as this!

 

I am not sure what all that means, " shark infested" just looking for some un-biased opinions on this drilling business.

Sorry Schnoozie,  it just means that like in shark infested waters, you need to stay alert in your decision making throughout this process.  Obtaining a truly unbiased opinion is very difficult as everybody seems to have an opinion one way or the other on the issues with this process.  Being on here & following other landowners thoughts & discussions is (I believe) a good starting point, but then again much of what you read on here are personal opinions, or discussions based on personal experience, so the discussion although true for some instances may not apply in all situations.  It is a rather confusing process & if you let it, it can consume much of your time trying to separate the fact from the fiction.  Unfortunately, I don't think there is any "clear" path for this process, you just need to educate yourself as much as you possibly can and find a company or group that you feel you can trust.  Personally, I found that paying a small fee was worth my comfort level I had with the group I decided to join with & they did negotiate what I consider to be a suitable lease that should still allow the company enough room to operate. 

I am a land, O&G mineral rights owner, leased with XTO (which is owned by Exxon Mobile). XTO just began ground work for drilling our 640+ acre production unit.  With the exception of consultation with my attorney on all legal terms, contracts and lease offerings, there was no "middleman" involved between me and XTO'S landman, when I signed.  I hear there are some fantastic "numbers" out there, in terms of bonus signing money per acre, and pecentage of royalties, being offered on lease - but I wonder how many of those wells will ever be drilled - and how often they may be "flipped" - and to whom...

I signed at terms that were comfortable for me, XTO has always dealt fairly and squarely with me, and kept their word in every single thing they've said. They have paved our road and made it safer.  As I watch their preparation of the ground for the well pad, I see they are making every conservative effort to protect the environment. They are a company with "deep enough pockets" to do the job - and do it right - with a committment to their neighbors and the community.

I had many more concerns about drilling than just the money that could be made.  I am pleased in all aspects of my dealings with XTO, and am grateful for the financial security my royalties will provide for my family.

I am Todd"s mother & we share this profile.

Kit   

This is kind of what I was looking for, and thank you.

You have your own land as do I, I guess I dont see how I would have any real say as to what my lease would look like when it was done if it was part of a landowner coalition, or was representented by a group. I talked to a Lawyer in mercer and he said " Look its your land, and 5-6 page document that both sides want to live with when we are done, and I will bill you by the hour.

Good luck to you with your plans, they sound exciting for your family and future. I hope they hit a big one.

Have your lawyer do the best he can but before you sign look at a lease that a large group negotiated and compare them. Groups usually get better terms than what an individual landowner can get. Its the power of being united.

ScHnoozie...the response from Kit, Todd's mother, is an excellent reply.  If your attorney is reputable and on the up and up, he will do what is best for you...like I said in another discussion, the big O&G's have a legal department like no other and you are not going to beat them.  However, they are not heartless either and if they really need your land to to complete their unit/pool, they are going to negotiate to a point. Go to Penn State's site for the Marcellus... here is the url for it http://extension.psu.edu/naturalgas.  It provide some leases and other great info. Of course, this is just a starting point...but it does provide some good info and it may even help you with choosing an attorney.  If he truly has experience dealing with these big O&G's, he will know exactly how far to push. 

Good luck...

Schnoozie;  the best advice I can give is to get in touch with as many of your neighbors as possible and have meetings once a month.  Discuss what offers are being made, study the lease terms and addendum, share with each other what you learn, and ask a lot of questions.  Take your time and use many sources.  Working as group is the best way to learn and it will give you more leverage when it comes times to negotiate.

The lease is everything. Even if you sign with a good company the odds are that the lease will be "assigned" or sold/swapped with another  company. That means that no matter who you sign with, you have no idea who will drill a well or operate it after it is drilled.

Jim,

I agree with the research part, You never answered my question before, how did you get your lease at 3000 and 17% with no cost deductions. when everyone else has to pay them, and when did you sign it? was it recently, 2011? You said it took you some time to make a decision.

No cost deductions means that the gas company cannot deduct cost such as transportation, compression, dehydration and many more.  Companies will often deduct as much as 3% of the royalty reducing a 17% royalty to only 14%.

The original MT Jackson group members had no royalty fee to CoX as we were already under a group agreement. They are starting a new group with only a 5% of the bonus and no royalty. Friend me for more info.

I signed in Sept after three and half years of effort.

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