Rich and Brad posted in the comments section regarding Range's leasing interest in Independence and Hopewell TWP's and I have heard of Range's interest in land in western Hanover TWP which is currently under a Chesapeake lease.

Any other news regarding Range's leasing activity and areas of interest?



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Todd Chuck a landowner in raccoon Twp left a comment for me about a land man for Range that said they were trying to renew leases that were due to expire in 12-18 months. Is that normal to try to renew leases that are still good for a year to a year and a half ? Do you think they are trying to renew now at a cheaper price before something big happens and our lease values maybe double or triple?


Is Chuck already under lease with Range? 

Range wants to keep his property under lease for a reason... Raccoon TWP is definitely in a super-rich area according to Range's own presentations.

I see no reason to sign until much closer to the expiration of the lease.

FYI: Consol has stated during their analyst day last month that they expect Shell to give the go ahead with their cracker by the end of this year.


Todd, his lease expires in December .


Then it's negotiation time for Mr. Chuck and Range!

Negotiate the best you can.  If the dollars are way off maybe bend on that some and offer a 2 year lease at a lower amount than what you want. Then you'll know by their response if they plan on drilling anytime soon. If they say ok.... as long as you don't sign, you are golden. Tell them you have to think about it. A good way to find out intentions sometimes. We need all the help we can get, God knows they have the upper hand in negotiations.

 Good Luck Chuck !   Please let us all know what your outcome was ?  

I have seen on the Beaver County web site, many southern county leases by Range. What is surprising is the number which are for 5 years PLUS an additional 5 yr on the same terms. Sounds like Range wants to go slow while still locking up the acres. 2 yr lease would be hard to get, or with poor up front payment.

The poor up front payment might be worth it if they drill and get the well producing relatively quick, ie 2 yr time frame. Remember future royalties will far out weigh the original lease payment to you. Of course your stage in life has to be considered in the equation as well.

It is a conundrum. 

Todd I am the chuck that brad was talking about, my lease is up Dec 2015, was offered 1500 - 2000 & 16 - 17% per acre on my almost 100 acres.  Talking to lawyer now deciding whether or not to go with him.  Landman is really pushing to get me to sign by end of this month.  Will only offer 1750 & 16 1/2% for a non surface lease, this would be my 3rd lease with Range, not sure how much I can hold out for - no word from lawyer yet on the top price I might be able to get for the renewal of non surface lease (which is what i have now).  Have you heard of any prices for 100 acres and up in the area around Raccoon twp. 

Chuck, I was just at dinner at at my pastor's house we were talking about our leases with Range.He has 50+ acres in independence Twp and just signed in October for 2100@17%.


If your lease does not expire until December 2015, what's the point of resigning right now?  I do not see any advantage to  negotiating another lease until about this time next year.

Question:  Is that royalty gross or does that include a "market enhancement clause" which is the EXACT same thing as post production costs?

Focusing on the royalty where all of the long term money is, I recommend making sure that you get a GROSS royalty only and have your attorney state in the lease that no post production costs or any other deductions whatsoever shall be subtracted from your royalty payment. 

Bonus:  Range is lowballing everyone apparently with the up front bonus.  I just read that Range's acquisition costs are less the one quarter of other operators!

Excerpt from near the end of the above referenced article:

"Across all of the operations the company would likely breakeven (on a cash basis) at around $3 gas, with its top acreage in the Marcellus likely breakeven at $1 or less. Range has also had excellent results growing through the drill bit, with very low finding and development costs ($0.61/Mcfe; less than one-quarter of the industry average)."

It's not that big of a deal that you have a non-surface use agreement to me and that should definitely not affect royalty.  If anything, 100 acres should command a premium royalty and up front bonus payment.  As previously mentioned you are located in Range's self-defined super-rich area for the Marcellus and Upper Devonian Shales plus you have the Utica/Point Pleasant.  No wonder they want you to sign NOW!  The only advantage to you signing now is for Range to save more money on their "finding and development costs ($0.61/Mcfe; less than one-quarter of the industry average)."

That being said, if they really really want you to sign now, then I would ask for a MUCH higher up-front bonus payment and a Gross royalty.  In exchange, Range will get to extend their lease time with your stacked pay acreage.

Best of Luck to you,


Great advice, Todd !    


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