Started this discussion. Last reply by Jack Young Feb 10, 2016. 8 Replies 0 Likes
I am part of a lease signed by my ancestors in 1901. All of the old surface wells have been plugged. The gas company pays me a few dollars per year for storage. Is this a legal way for the gas…Continue
Started this discussion. Last reply by Marcus Huey Feb 9, 2016. 6 Replies 0 Likes
A gas company is asking me to sign a lease titled:"Oil and Gas Lease (PAID UP)"What does the term "PAID UP" mean and why would the gas company want this term in a lease?Continue
Started this discussion. Last reply by Marcus Huey Jan 8, 2016. 31 Replies 0 Likes
I own mineral rights in Wetzel County. 30 wells have been producing for the past 18 months. I have been getting paid royalty for natural gas but have received zero royalty for oil or NGLs.Is there a…Continue
Started this discussion. Last reply by Marcus Huey Dec 9, 2015. 14 Replies 0 Likes
My family has 130 acres of mineral rights in WV. In 2012 some, but not all, signed a lease with gas company X. Since signing the lease in 2012 we have had other dealings with gas company X, on…Continue
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Marcus, my wife is from Mannington, I am from East Run, went to school in Farmington. I know Dave Huey, used to work with him, also Ruth Huey, and their late uncle Tom Zirkle[ Big Z]. We own 110 acres near Hundred with one shallow well, a good producer, Statoil of Norway has purchased all deep horizons from Chesapeake and Grenadier Energy, saying big things will happen within the next 24 months, wish you well on your Fallen Timber minerals, your friend, Ben Harris.
I will caution you that Wetzel county is a hotsopt for Marcellus shale leases. I inherited mineral rights on 25% of 415 acres in Wetzel county and have a more recent lease (2002) that does NOT include unitization & pooling. I have talked to an attorney and he has advised that not only are all provisions of the lease negotiable, so is a bonus payment. For Wetzel county, that bonus value has been between $1,000 and $3,000 per acre (obviously for me that translates into 25% of that bonus). If you have an active well on the property, it is not likely that the term of the lease will be negotiable but all the other provisions are. GoMarcellusshale.com has a document with recommended provisions, I encourage you to read that document and incorporate as many provisions as possible. We have a well but it is shut-in and there is no time limit on the shut-in clause (my error) but we are not pooled and Gastar (the gas company) wants to pool us - all provisions are up for negotiations.
One other thing we found - the shale is narrow in Wetzel County, only about 45 feet thick but it is rich. What that means is the BTU content is higher (gas price is based on BTU content). The upside is we will see higher royalties. The downside, most of the pipelines will only take up to 1050 BTU gas which means we are not producing and are shut-in until a pipeline that takes higher BTUs is extended into the county. We are told that will be close to a year from now.
I would be happy to share my personal leasing experiences with you. Feel free to contact me at my personal email (dan@bezilla.net).