Our family was contacted by Dorso Energy last week regarding 111 acres my father in law still had the mineral rights on in Franklin Township, Westmoreland.  Anyone know anything about Dorso?  The paperwork is supposed to arrive tomorrow, but if I understood him correctly, the offer was $1000 per acre bonus, 12.5% royalty and not sure about the lease term.  I've been researching a lot on this forum and other sights so I've gotten a lot of education this past week so I know this is probably a ridiculously low intro offer.  Any thoughts?  I'm guessing our next step is to contact an oil & gas attorney and figure out what the property might even be worth and if any drills are nearby?  We live in Florida so this is a little difficult to do long distance.  I'm not trying to be greedy, but don't want to be taken advantage of either.  There is no other family involved and we don't know any of the other parties or where we are within the unit.  Not really sure at this point where we begin???!!  Thanks for any help


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You might be able to get a little more on the royalty (1-2%), but since you don't own the surface, the gas company is less inclined to give you a higher upfront bonus.  Regular leases in Westmoreland RARELY exceed $1,500/ac for 5 years if you own both surface and mineral estate.


By the way, Dorso is a long time shallow operator.  They're probably going to partner with a bigger company to drill if they build a sufficiently large leasehold.

Oh, and Franklin Twp was renamed Municipality of Murrysville back in the 70s.  Make sure your lease is updated accordingly.

We had an updated offer from Huntley and Huntley verbally but then they realized they weren't drilling on our acreage. The offer was $2250 an acre and 18%. Dorso is partnering with apex so we countered with huntleys offer and are waiting for a response. There are several offers in murraysville now with this price and some as high as $3000 an acre with only mineral rights. We are in no hurry so we are content to wait it out.

Is it for a 10 year lease?  That's the Huntley norm.

It was 5 yr from dorso but not sure about Huntley. It was verbal offer and once they looked at the map they decided we were too far from their pad. Our attorney works closely with them though and he wouldn't have let us sign for 5 yrs. He frequently meets with them and pitches new clients

Contact Chevron.  A while back they were looking into leasing around Murrysville but the Landowner group that formed couldn't agree amongst themselves let alone with a company.

Personally I wouldn't lease for that amount. I'm currently leasing in Western Westmoreland for EQT starting at 3000 and 15%.

Allegheny township specifically. We are leasing in other townships also - more information let me know.

If you're paying $3000 for a 5 year lease in northern Westmoreland, you're crazy.  Outside of Apex, you're only competition is CNX and they have more land than they know what to do with right now.  Anyway, EQT and Apex are working a deal so that'll work itself out soon.

I'm surprised Penn Energy hasn't popped up around here.

Nope not crazy - just here to get it done.


  I sent you an inquiry via a friend request to ask about leasing options with EQT.  

Dorso is a historic operator in the area and may only want the shallow stuff for its operations.  If so, the terms are not unusual.  If the lease includes all the strata including the various strata like the Marcellus and Utica that are produced by so called "unconventional drilling" then the offer is inadequate.

Possibly Dorsois collecting leases to sell to a big operator that can afford to spend the many millions for the more involved horizontal drilling.  There may be no reason to expect serious drilling at this time - particularly if there is no "wet" gas or oil.   In fertile areas for unconventional drilling 20% and $5000/acre - possibly more - could be the right amounts.

It  does not sound like something you would want to rush into.

DorSo is working with APEX Energy in Penn Twp., Westmoreland Co.  Huntley & Huntley's acreage is primarily in Franklin Twp.  If DorSo is leasing in Franklin Twp., then they're probably going to try and flip the acreage to H&H.  Best to work directly with the "Big Dog".


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