Replies to This Discussion

Permalink Reply by CATHIE on October 2, 2012 at 11:52pm

what township are you in ?

Permalink Reply by George Brown on October 3, 2012 at 12:25am

Most bonus payments refer to a 5 year lease.  So when you hear $2000 per acre, that's for 5 years so it amounts to $400 per acre per year.  In your case, if he means $200 per acre for two years, then that would be $100 per acre per year. Does he mean $200 per acre per year?  I can't really tell from your question.  In either case, it seems much lower than the "going rate" of about $3000 per acre (i.e. $600 per acre per year for a 5 year lease).

Permalink Reply by Oliver Perry on October 3, 2012 at 12:55am

Who is the company that offered you this, and what township are you located in?  Any way you look at it the offer seems very low.

Permalink Reply by Tim Tarr on October 3, 2012 at 8:01am

$200 an acre for what? what is the Royalty rate? Is it just for Marcellus, all formations or some other formation?

I would consider $200 for 1/4 (25%) Royalty but for 1/8 (12.5%) I would want at least 2K for Marcellus only!!

Probably best to wait for better offer in a few years. Natural Gas prices are low and O&G companies are trying to lock up (HBP) current leases. With that 2 Yr lease I'll bet they are trying to form a unit to HBP other Leases around you.