Found this OTE: Group signed lease with Chesapeake, terms: $5,750/acre and 20% royalty (see website for details)
Area covered: Wyoming County PA
Membership: 45,000+ acres

Views: 1151

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Comment by Robin Jackson on August 31, 2011 at 4:52pm
NICE
Comment by James Kerns on August 28, 2011 at 10:37pm
HOLY COW! And who said getting a group together had no advantage to it over going it alone! The power of participation!
Comment by paul geiger on August 28, 2011 at 7:59am
www.marcellusshalegaslease.com

Previous Small and Large Group Leases

True Story #1:  In 2008, Gene Partin joined his two Cecil Township, Washington County, PA neighbors to combine for 100 acres at the time when gas prices were at $11.00:
  • Purchaser – Range Resources
  • Lease price - $4,000 per acre – 17.5% royalties
  • Going rate at the time of the lease: $3,000 per acre – 16% royalties
  • Increase over the going rate prices - Bonus payment 33% higher/Royalties 12% higher*
Source: The Pittsburgh Post Gazette Newspaper

True Story #2:  In 2010, a group of landowners in Rimersburg, Clarion County, PA combined for 1,200 acres:

  • Purchaser – L&G, LLC (A subsidiary of Chesapeake Energy)  
  • Lease price - $2,400 per acre – 15% royalties
  • Going rate at the time of the lease: $1,500 per acre – 15% royalties
  • Increase over the going rate prices - Bonus payment 60% higher/Royalties 0% higher*
Source: One of the landowners that desires to stay anonymous.

True Story #3:  In 2009, a large group of landowners amassed 35,000 acres in Wyoming County, PA that paid a portion of the lease price to a broker and attorney to negotiate with a large group of buyers:

  • Purchaser – Chesapeake Energy
  • Lease price - $5,750 per acre – 20% royalties
  • Going rate at the time of the lease: $2,500 per acre – 16% royalties
  • Increase over the going rate prices - Bonus payment 130% higher/Royalties 32% higher*
Source: TradingMarkets.com

True Story #4:  In 2009, a large group of landowners amassed 100,000 acres in Southern New York that paid a portion of the lease price to a broker to negotiate with a large group of buyers:

  • Purchaser – Fortuna Energy (A Canadian company)
  • Lease price - $5,500 per acre – 20% royalties
  • Going rate at the time of the lease: $2,500 per acre – 16% royalties
  • Increase over the going rate prices - Bonus payment 120% higher/Royalties 32% higher*
Source: Energyindepth.org

* Royalty increase percentages are based on Royalty Increases Page

Whitelight De
Comment by Finnbear on August 28, 2011 at 1:05am
Can you post a link to that article?
Comment by JMS on August 25, 2011 at 11:31pm
That is awesome!

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