Hello, I have 16 acres in Tioga Twp. Over the past 6 months I have been approached to lease my property 8-9 times. I would like to know if there are any local lawyers that specialize or have extensive knowledge in Oil & Gas leasing? Any information would be greatly appreciated. Thanks!
Thanks for the input Josie!
Lester Greevey works with R & R Energy ( Jackie Root ) on leasing issues. My Wife and I have both used R & R to help with leases and issues and been well satisfied.
Who is interested in leasing? Shell/Long?
Thanks Gary. Shell has the interest Lynn.
Can I ask what they are offering? Their interest seems to be only in very specific areas in Tioga County right now. I hope they haven't written off the rest of us.
My understanding is that Shell's current offer is $1,000/acre for 10 years with a 1/8th royalty. They believe they need 10 years minimum on every lease due to the current outlook for gas prices. I just checked - the March price for gas at Transco Leidy settled at $1.15. (Other markets are better, but none are good enough to make a profit on anything but a monster well.) Hard to argue with their position after the horrible winter pricing we've just been through despite very cold weather. Low prices are the biggest risk Tioga County faces right now.
I have heard of $1500 for 5years, 12.5 % with no deductions. That was in December before prices fell. There is a group that Jacki has put together but I have not heard of any progress this year. I feel that the price and weather will hold things up until spring.
Have a long term lease with shell and in last year or so have several phone calls and letters from all over the country wanting to buy my rights out right, my feeling is that the offers of quick money would be making someone else a lot of money.. unless you are planing on doing the R.I.P thing soon or have no one to leave something too keep your mineral rights, remember we are some of the very few in this world that can even have the opportunity to make this choice. we have been blessed!
Shell has gone as high as $2,200 quite recently, but have been very picky on location. 12.5% is the standard for now ... time frame varies. We're due for new blood.