Replies to This Discussion

Permalink Reply by Suzy on December 18, 2009 at 2:00am

Thank you for responding..... I appreciate it!

So, is that $10K - $15K per acre: just for the land needed for the well site, OR for each acre in the property OR a one-time payment and that's it?

In other words, if I have an 80 acre property could I possible expect A. $10-15K x number of acres needed for well site or B. $10-$15 x 80 acres or C. Payment of $10 - $15K total and that's it?

Sorry if this is a dumb question, but on this I am clueless!

Permalink Reply by Suzy on December 30, 2009 at 2:47am

Wow....that's not much, considering how much you can get if you sell your land for putting up homes or other use. Not to mention how having a well nearby would devalue the land surrounding the well (who wants to live or put a business up next to a well?) and the risk factors with the water.

Permalink Reply by Cindy Jones on January 4, 2010 at 7:06am

Our lease has a one time $15k payment if the well is sited on our land, in addition to the $$ per acre for the land lease. You need to remember that while the initial wellpad is about 5 acres, the restored well location after the drilling is done, is less than 1. How would the land be devalued being near a well with the possibility of royalties, unless you plan on severing the gas rights before you sell? From what I have seen, the property values have skyrocketed. My lease payment for 5 years was more than I paid for the land 7 years ago. As far as putting up a business near a well, my land is rural, I don't want anyone building houses and businesses anywhere near my property. As for the risk factor for the water, everything in life has some level of risk. Considering the vast number of wells already in PA, the recorded incidents are a very small percentage.