Replies to This Discussion

Permalink Reply by Mike C. on December 6, 2009 at 8:22pm

what terms and who do they rep??

Permalink Reply by Louis G. Decker on December 8, 2009 at 9:41pm

As a consulting firm, I would assume they would represent landowners for a small fee to possibly negotiate better payment terms and T&Cs.

Permalink Reply by Scott Wilcox on December 6, 2009 at 9:02pm

What is Ultra's offer to you? Per acre and royalties? Thanks.

Permalink Reply by Louis G. Decker on December 8, 2009 at 9:39pm

$1,000 per acre and 12.5%. y

Permalink Reply by Scott Wilcox on December 16, 2009 at 2:51pm

Louis, Ultra's offer now is matching East. 1500$/Acre, 15%. 5 years.

Permalink Reply by Louis G. Decker on December 18, 2009 at 12:52pm

Yes, within the last week Ultra just sweetened their offer to $1500/15%/5.

Permalink Reply by Lynn Wigglesworth on December 7, 2009 at 9:05pm

I'd be interested in finding out if R&R could get any more than the standard offer ($1500/15/5) out of Ultra. I've heard that they are as stubborn as East about not offering a cent or a percent more. A lot of State Forest land in Delmar Township (and other townships) goes up for bid in January...I wonder if that will bring in some much-needed competition.

Permalink Reply by HMND on December 8, 2009 at 5:56pm

Lynn, I just joined this blog. How does the ($1500/15/5) work? I have a piece of land in Tioga and I am curious what is being offered out there. Thanks, Haris.

Permalink Reply by Lynn Wigglesworth on December 9, 2009 at 7:28am

With 1500/15/5, the oil and gas company leases the mineral rights to your land for $1500/acre for 5 years. If they drill on your land or you are included in a pool (a large area of land associated with a well), you get 15% of the royalties from the gas sale (this can be a considerable amount of money, depending on how many acres you have). The problem is, East was offering $2300/15/5 last year; the guy across the street got that deal, but they won't give me the same. East doesn't have any competition in many parts of Tioga county, so they don't feel they need to offer anywhere near the market price for leasing.

Permalink Reply by Louis G. Decker on December 9, 2009 at 12:52pm

Lynn;
How long ago were you offered this contract from East? How many acres does this contract include? What township?

Permalink Reply by Lynn Wigglesworth on December 18, 2009 at 9:14am

It was in October of this year. I have 42 acres in Delmar Township.

Permalink Reply by HMND on December 9, 2009 at 2:52pm

Lynn, is that $1500 per acre a one-time payment or annual?

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