Al I am in Louisiana so my comments are in the prospective of looking at the Marcellus from Louisiana eyes. I just hope that all the natural gas plays pan out. We just need a bit of a price hike.
Al, these shale plays are going to go on for a hundred years or more, long after all of us on this website are long gone. I just want all the folks to relize that when they sign the lease it will effect their great great great grandchildren.
Thanks for getting in touch Al. Dan was really hoping to get to talk to you
so I have your number down for him to get in touch. He has been following
the posts for Harrison Co and some from PA and WV and trying to educate
himself so we can make informed decisions.
Thanks Al -- I appreciate the welcome. I'm currently spending most of my time between Youngstown, OH, Parkersburg, WV, and Pittsburgh, PA. I'm putting in a lot of miles developing contacts. My number is 405-255-7119.
I met with a landman from Kenyon/Ohio Buckeye/Chesapeake yesterday, and he offered me $1500/acre with 15% royalty, which is what I know he has offered several of my neighbors recently. He showed me the lease contract that he had just signed and hour before with one of my fellow landowners, and it already had most of wording in it that I would had wanted to include as addendums, like royalty based on gross, mutual agreement on drill/pipeline/road locations, no storage, etc. But you say someone is being offerred $2000/acre? By who? And where?
Still haven't signed yet. I know that Chesapeake is going to start drilling in the next 60 days on a permitted unit near here. The results of that first exploratory hole could make offers go up or down depending on what they find.
20% sounds pretty high. I'm from Okahoma where my family has had gas and oil leases for generations and the highest rate offered has always been around 3/16ths, which is 18.75%. I might be willing to wait for that, but do you have any reason to think it would ever get up to 20%
Yes Al, it was from Kenyon. I am not in a hurry, but I do think like some of the others on this site, that the larger income will come from royalties. We cant get those until we sign. What is throwing me is the Utica. My original plans have all been based on research of the Marcellus of which Ohio is on the thinner side, but there is alot of speculation about Utica now which I have little or no knowledge of in Ohio. Sounds like more research unless you have already done some. My thinking was $3000 to $3500 per acre and 18% would get me to pick up the pen. Now I need to know more about Utica.
Sounds like a sound plan, as long as the goods are down there. Have you negotiated at all with any drilling companies or are you waiting for the offers to get near the point you are looking for prior to starting? Also, any sites about Utica that I could learn from would be welcome.
Thanks Al, Good to hear from you again. Every now and then you just gotta raz people. Keep them on their toes... haha So did you ever make a deal on your acreage? Where was it again?
There are some people on this forum who have the head so far up their rear end I thought I would help by giving it a good tug out. Anyway... I agree with you that chk is going to flip their acreage. Here is how they usually do it. Get a boat load of acreage in a new play, check. Drill some wells around that acreage and do flow tests on them, almost check. Announce their findings and take what they say these test wells make and inflate the value of their acreage. The go pimp their play to the chi-coms or the Indians or anyone with a sack full of cash to come and pay them 3x+ their leasehold costs and CARRY them for half of the drilling.
Hell of a business model, but I personally wouldn't want these shysters on my property or their foreign partner. In our company's dealings with them they are shady they try and value our assets for junk and buy us for nothing. They take forever paying people who have made deals with them. And they aren't afraid of reniging on a contract as they did to the producers and landowners they leased in Michigan a year or so ago. So If I had a decent choice I would not be a partner and lease with them. (I did buy their stock though, lol).
Hi Al: I was reviewing comments on this site as my sisters and I own some property in Ross county, down the road from State Lake area. We have been contacted by Chesapeake regarding gas. I'm trying to get educated; however, I noted your last name and wondered if you had any relatives from Steubenville? We had a family with your last name a few doors down...just wondered? Thanks.
Welcome Al, I've been following you posts for months. It's great to have someone in the group that has a clue about what is going on, as most of us are just beginning to learn.
Thanks Al I appreciate that. I am currently holding 160+ acres in Harrison county and I am being approached to sign off on the gas and oil rights. I am using an attorney but as he says there is no crystal ball.
I went to Larry Piergallini's meeting Monday and picked up some information. I agree with your comments about signing for a better royalty rate versus bonus. I am questioning whether I should try to broker with a smaller company. I learned that you can spud a well on only 40+ acres. I am curious if a company would come in just for my 160+ acres. maybe the royalty rate would be better. I would appreciate your insight into this matter. Thanks.
Didn't quite understand your message Al. But we drilled 3 wells by Bowerston/Leesville. Fraced one this week, the next on Wed and Hopefully the 3rd the week after. Sierra is going to Drill a test hole outside Leesville on one of our leases and get some data and they plan to start drilling out there this fall/winter.
Thanks Al! One of my neighbors emailed the senior landman from Chesapeake yesterday asking for the bonus to be increased, but he hasn't received a reply yet. There are 5 of us that have adjoining land and are all in the Group B who haven't been paid. Two of the neighbors in this Group B situation are supposed to sign with XTO today. Not sure what to do since I only have 5 acres.
I have 14.125 acres in moorefield township, wish I had more but it is what it is. This natural gas boom is amazing I never thought anything like this would happen
Their lawyer them this, I am blotting out their names k? The .... family will have to send a letter (I would send it certified with a return receipt requested) to the Dale address on the first page of the lease. The letter needs to state that:
“this letter shall serve as notice pursuant to the terms of the lease between .............. and Dale Property Services recorded at Deed Book Volume......... Page ........... regarding limitation of forfeiture. This lease is cancelled, terminated and forfeited due to non payment of the paid up delay rental. This letter shall also serve as a demand to file a release or surrender of lease. ”
you should do the same but I forget all of your details...this lease has a limitation of forfeiture clause which requires 60 days notice before you can bring suit against Dale. If dale pays before the 60 days are up, the lease is in force. If Dale doesn't, and refuses to file a surrender or release of lease then she will need to file a quiet title suit. ( I think Dale and Chspk work together, its one of those small companies like that works for CHPK)
Can you explain to me a little better exactly what happened.. I have like so many people that have gone through this and one
I read up this play starting around last fall. I feel I was caught up in all the excitment, wondered why nobody offered me a lease. I ended up signing in with ALOV. A great lease, but as we know bonus have since gone up from the $2250.
Well, a blessing in disguise, CHK kicked out my lease due to HBP issues.
Well...soon after signing the lease ( in April) ,,,,Sierra Buckeye comes to town.
I find out they snathed up all my HBP leases in deal s with local O/G operators. So Sierra is my best fit I believe.
I been talking with them.....learning every day. Told them I won't sign lease for free acreage until we make a deal on free acreage and new terms on old HBP leases...a package deal. I have 2 parcels....they almost connect....83 acres and 188.
Suppose to have meeting next week with VP of Sierra ( we talked before) to get something worked out.
What I find is that these guys are all the same...tell you anything, nothing documented/written....and won't give much information.
I realize now that I have no control over drilling dates.....so just have to live with that
Linn A. Willers
Sep 22, 2010
Brent Laner
Sep 28, 2010
Two Dogs
Sep 29, 2010
Two Dogs
Sep 30, 2010
Two Dogs
Oct 1, 2010
Cathy Galbraith
so I have your number down for him to get in touch. He has been following
the posts for Harrison Co and some from PA and WV and trying to educate
himself so we can make informed decisions.
Oct 27, 2010
Nicholas Hunley
Nov 17, 2010
Nicholas Hunley
Nov 18, 2010
Dan
Nov 19, 2010
Dan
Nov 27, 2010
Dan
Nov 27, 2010
Dan
Nov 27, 2010
Dennis
Dec 1, 2010
Dennis
Dec 2, 2010
Dan
Al, I haven't seen any posts from you lately. You doing ok?
Dec 15, 2010
Dan
Good to hear from you Al. Merry Christmas to you guys too.
Dec 20, 2010
Nate
Mar 25, 2011
Nate
There are some people on this forum who have the head so far up their rear end I thought I would help by giving it a good tug out. Anyway... I agree with you that chk is going to flip their acreage. Here is how they usually do it. Get a boat load of acreage in a new play, check. Drill some wells around that acreage and do flow tests on them, almost check. Announce their findings and take what they say these test wells make and inflate the value of their acreage. The go pimp their play to the chi-coms or the Indians or anyone with a sack full of cash to come and pay them 3x+ their leasehold costs and CARRY them for half of the drilling.
Hell of a business model, but I personally wouldn't want these shysters on my property or their foreign partner. In our company's dealings with them they are shady they try and value our assets for junk and buy us for nothing. They take forever paying people who have made deals with them. And they aren't afraid of reniging on a contract as they did to the producers and landowners they leased in Michigan a year or so ago. So If I had a decent choice I would not be a partner and lease with them. (I did buy their stock though, lol).
Mar 26, 2011
Nate
Mar 26, 2011
Nate
Mar 27, 2011
CAM
Hi Al: I was reviewing comments on this site as my sisters and I own some property in Ross county, down the road from State Lake area. We have been contacted by Chesapeake regarding gas. I'm trying to get educated; however, I noted your last name and wondered if you had any relatives from Steubenville? We had a family with your last name a few doors down...just wondered? Thanks.
Christine Yanch McBride
Apr 2, 2011
JT
Apr 28, 2011
Gary Cunagin
Jun 29, 2011
william
Thanks Al I appreciate that. I am currently holding 160+ acres in Harrison county and I am being approached to sign off on the gas and oil rights. I am using an attorney but as he says there is no crystal ball.
I went to Larry Piergallini's meeting Monday and picked up some information. I agree with your comments about signing for a better royalty rate versus bonus. I am questioning whether I should try to broker with a smaller company. I learned that you can spud a well on only 40+ acres. I am curious if a company would come in just for my 160+ acres. maybe the royalty rate would be better. I would appreciate your insight into this matter. Thanks.
William
Jul 28, 2011
Nate
Jul 29, 2011
buc booster
Aug 1, 2011
buc booster
Aug 1, 2011
Luann Hamilton
Sep 26, 2011
Aaron Resch
I have 14.125 acres in moorefield township, wish I had more but it is what it is. This natural gas boom is amazing I never thought anything like this would happen
Oct 1, 2011
Oil and Gas nightmare
Their lawyer them this, I am blotting out their names k? The .... family will have to send a letter (I would send it certified with a return receipt requested) to the Dale address on the first page of the lease. The letter needs to state that:
“this letter shall serve as notice pursuant to the terms of the lease between .............. and Dale Property Services recorded at Deed Book Volume......... Page ........... regarding limitation of forfeiture. This lease is cancelled, terminated and forfeited due to non payment of the paid up delay rental. This letter shall also serve as a demand to file a release or surrender of lease. ”
you should do the same but I forget all of your details...this lease has a limitation of forfeiture clause which requires 60 days notice before you can bring suit against Dale. If dale pays before the 60 days are up, the lease is in force. If Dale doesn't, and refuses to file a surrender or release of lease then she will need to file a quiet title suit. ( I think Dale and Chspk work together, its one of those small companies like that works for CHPK)
Can you explain to me a little better exactly what happened.. I have like so many people that have gone through this and one
Oct 10, 2011
Paul Martinelli
Al,
Thanks for the information.
My background information is this:
I read up this play starting around last fall. I feel I was caught up in all the excitment, wondered why nobody offered me a lease. I ended up signing in with ALOV. A great lease, but as we know bonus have since gone up from the $2250.
Well, a blessing in disguise, CHK kicked out my lease due to HBP issues.
Well...soon after signing the lease ( in April) ,,,,Sierra Buckeye comes to town.
I find out they snathed up all my HBP leases in deal s with local O/G operators. So Sierra is my best fit I believe.
I been talking with them.....learning every day. Told them I won't sign lease for free acreage until we make a deal on free acreage and new terms on old HBP leases...a package deal. I have 2 parcels....they almost connect....83 acres and 188.
Suppose to have meeting next week with VP of Sierra ( we talked before) to get something worked out.
What I find is that these guys are all the same...tell you anything, nothing documented/written....and won't give much information.
I realize now that I have no control over drilling dates.....so just have to live with that
Well..thanks..
-paul
Oct 11, 2011