Need guidance negotiating with multiple energy co's interested in rights to my land.

I own 20 acres near Lopez, PA and have been approached by several O&G companies for the rights to my land.  I am a novice at this, have numerous questions and am looking for some guidance.

  • What is a reasonable price I should expect per acre?
  • What is a reasonable % I should seek?
  • What contract conditions do I need to be wary of and avoid?
  • What favorable contract conditions could I reasonably expect to include?
  • Do I need a lawyer and where do I find one knowlegable in this field?
  • Is there a listing anywhere where I can get details of deals/prices for land in my area?
  • What am I missing? 

Views: 348

Replies to This Discussion

Permalink Reply by marilyn ascani on March 31, 2011 at 6:04am
You definitely need a lawyer.  Go on line to see the Friendsville lease, it encompasses every clause you will need to protect yourself.   The latest lease amounts have been around $5,850 to $5,000 per acre with some royalties running up to 20%.
Permalink Reply by Michael Luybli on March 31, 2011 at 6:32am

Thank you.  Where do I find the Friendsville lease online?

Permalink Reply by Frank Stabryla on March 31, 2011 at 6:32am
Michael, we have just signed a gas lease for land near Mildred. I suggest you contact an attorney. I used Doug Clark, very informed and reasonable. His number is 570-307-0702.
Permalink Reply by thomas kitchen on March 31, 2011 at 7:31am
Michael: I also signed near Mildred last fall. Chief was the company. Can you tell who is interested in your parcel...I have land in Laporte twp and am looking for a company to possibly lease it.
Permalink Reply by Michael Luybli on March 31, 2011 at 8:16am
Chief, Chesapeake and one other (somewhere in my pile of stuff) have contacted me.
Permalink Reply by thomas kitchen on March 31, 2011 at 8:26am
Michael, If you are interested in talking I can share my experience with the company's I have dealt with. Tele # 321-327-2822
Permalink Reply by thomas kitchen on March 31, 2011 at 8:29am
,
Permalink Reply by Michael Luybli on March 31, 2011 at 8:38am
Thanks.
Permalink Reply by scott brion on April 8, 2011 at 11:53pm
You are off to a good start by gathering information and asking questions.  One suggestion I would make is to seek out good business advice and seek to find out how companies plan to operate under your lease.  It is really important to understand proposed lease terms operationally as well as legally. This information is often hard to find, and my experience is that lawyers typically don't yet have the experience to provide full information.
Permalink Reply by GMF on April 9, 2011 at 11:09am

Ask your neighbors-Don't be shy. If there are others who have not leased, get a pact going…work together to get  a bigger parcel for higher % and more $.

Yes, for the lawyer. Split the lawyer fee among all in the "pact".

 

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Permalink Reply by GMF on April 9, 2011 at 12:16pm

Hit the button before I finished attaching info…sorry—look at this also, Might give you some direction. Good Luck

We had J.C. Wilkinson, III, in Eagles Mere help us. GMF

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Permalink Reply by Michael Luybli on April 10, 2011 at 5:06pm
Thank you. I appreciate the advice and the addendums are most helpful.

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