I received a letter from a landman representing BOP interested in discussing a lease on my land (60 acres in Fairview township).
I was in a lease with Chevron until last year when they decided not to renew the lease.
Has anyone had a lease with Edgemarc or dealings with BOP? Are the good to deal with and does anyone know what they are currently offering in the area for the per acre bonus and royalty?
We received an offer from BOP land services for Edgemarc.
Offer is $2000 per acre and 14% royalties with a deduction for transportation costs.
NO numbers available on what that might cost. Seems like I could end up owing the gas company!
Located in Butler County PA, Washington Township; and am aware that neighbors have also been approached in that area, but can't get a good read on what folks are doing.
In 2011-12 we had BCLG negotiating for us. Now I'm feeling like a fish out of water. Should my attorney do the negotiating for me? I only own 32 acres, so it seems like I don't have much leverage.
Anyone have any thoughts or suggestions? Thanks!
Ask to cap the transportation costs and any other post-production expenses such as compression, marketing, trestment. Make sure that cap stays in place, survives an assignment or conveyance should your well be unitized of assigned. Reasonable deductions are typically ok, but they should be reasonable for your area. Check with others as to what they have done and get your attorney to put in the appropriate wording.
Haven't heard anything in Cherry
We met with them. Seem very inflexible. Only act in town. Amount one would receive as a royalty is really not known as the 14 percent is a "net" amount subject to post production costs. These costs are also non negotiable.
There is very little in a lease that is "non-negotiable". That just means that they don't want to negotiate. Post production costs are indeed negotiable. You may not be able to eliminate them but you can get them capped. It's often called "minimum royalty" and it puts a floor on the royalty you receive. If your attorney doesn't understand both that and about half a dozen other ways to negotiate a lease then he/she is an amateur playing a professional's game and you need a different attorney.
Well said Joe. I guess I should have stated they at present are not willing to negotiate. We are working to put a group together to act with a stronger voice.
How are you coming with your group? How many townships are involved with it? I have property in Butler County I would be interested in leasing for the right lease. Thanks.