Comment

Comment by sldouglass on April 2, 2013 at 11:10am

Range probably has a near monopoly in some areas because it has so much land covered with shallow leases that may still be good.

But if your land is not leased, remember that Range NEEDS it.  At some point it will pay for it.  Unfortunately, I can not tell you when.  Meanwhile it will try to lease as cheaply as possible.

The bigger the group negotiating, the more bargaining power - but Range and others will continue to pick off unleased properties at low prices where possible.  And some people need the money.

Comment by james on April 2, 2013 at 9:38am

Has anyone talked to any drillers recently in Crawford County? I know Range was offering $3850 spread out over 5 years last year, dont know of any other company that was interested? In Mercer County there are at least 4 drillers/companies working including Shell, Chevron, Halcon and Hillcorp.  I dont believe any of these are doing any new leasing in Mercer right now.

Comment by rex roae on April 2, 2013 at 9:23am

Thanks James.  All the best to you as well!

Comment by james on April 2, 2013 at 9:17am

Rex, thats sound like alot of money and it sounds like it would make life easier for you and your family, Good luck in whichever way you decide.

Comment by rex roae on April 2, 2013 at 9:11am

James, the figures I gave were after we negotiated.

Considering the size of the deal, we feel it's a good offer.

Comment by james on April 2, 2013 at 9:08am

Rex, have you guys countered with a higher offer? $4000 an acre is a nice chunk of money, but Im sure this company didnt come to you with their top offer, Im sure they left money to negotiate with?

Comment by sldouglass on April 2, 2013 at 8:48am

One thing you could have your attorney do would be to "Except and Reserve" oil, gas and minerals" out of your deed - possible stating that there will be no surface rights so that the surface owner is left with something to negotiate with. You may even want to include language that would let the surface owner split the deal with you etc - a percentage of the bonus and/or royalty that would make your buyer more positive about the whole thing and still give you a piece of the action. That way the surface owner might do most of the negotiating for you. Your rights are not all that speculative other than the "when."

Comment by rex roae on April 2, 2013 at 8:30am

Sam, I'm willing to sell my rights today for the sure money vs the speculative future bonus money.  I know that bonus is coming, I just don't now when or what the terms will be.

I have little doubt we are leaving money on the table but this offer works for my family and me.  

Comment by sldouglass on April 2, 2013 at 8:08am

The Fernwood Conservancy LLC that I found does not sound like a company that would operate multi-million dollar shale gas wells:
http://companies.findthecompany.com/l/22935109/Fernwood-Conservancy...
Could be working for someone else or buying rights cheap on speculation.

Comment by sldouglass on April 2, 2013 at 8:00am

If the offer is a bonus in the range of $5000/acre and royalty of 20% with separate calculation for the sale of each wet gas and a minimum deductions with a "fair" lease, it is probably worth considering.

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