Comment

Comment by Terry W. on March 21, 2011 at 7:24pm

A group of neighbors got together, and the one neighbor with the most property, had an

attorney who also owns his own land, put together the addendums (2 pages).  I had written down

questions and points to go overat our meeting, a day before our signing, all but two questions

were answered and shown on the addendum.  Very little I had to go over.  I might have seemed to be a real pain at the meeting with all the questions, but it helped all.  I have read daily the info on this site and others.  It all worked out well!!

The boiler plate ended up almost non existant with its language with the attached addendum.  

Comment by DKinPA on March 21, 2011 at 4:10pm

This is the language that I saw in an energy US lease and hopefully yours was not like this one:

 

valued at the price received by Lessee at the wellhead at the time of production for the oil and gas in its natural state, after deducting from such proceeds of production any advance royalty previously paid, any severance, ad valorem and other applicable taxes and reasonable costs incurred by Lessee in preparing such oil and gas for market, including without limitation the costs of any necessary treatment or compression and the cost of transporting such oil and gas to the point of sale. In no event shall Lessor’s royalty be based upon a price higher than Lessee may lawfully receive.

Comment by Terry W. on March 21, 2011 at 2:23pm

I personally questioned and veified in the lease, that the royalties are gross, and not net.

I didn;' quite understand that part in the beginning about the gross and the net., but got that item cleared up.  It is gross.....

As far as the flip, I would agree with you.

But I do not think that 15% is too low, being that there is only 50-100 feet of Marcellus Shale

If I get the bonus money, I fill that I am that far ahead.  My future number of years to live are

numbered, want to make it best of what is left, for both me and the other half..

Will keep updated as situation develops.

Gas below us, from what I understand.

Comment by DKinPA on March 21, 2011 at 10:18am

From their website:

Energy U.S., an oil and gas company headquartered in Pittsburgh, PA. Just like you, we are also oil and gas royalty owners We are committed to helping the individual royalty owner sell their producing and non-producing oil and gas royalties, leases and overriding royalty interests quickly and discreetly.
We have the capital and experience required to properly evaluate and make lump sum cash buyout offers on your oil and gas royalties regardless of size. We buy small and large royalty interests ranging from a few hundred dollars to millions.

Sounds to me like they just want to flip the lease?  I also understand the royalties are low and are net as opposed to gross royalties.  Tom, if you would keep us up to date on how things develop for you we would sure appreciate it!

Comment by Terry W. on March 19, 2011 at 10:15am

randall:

I checked my lease and it has EnergyUS LLC with principal office at 401 Grant Street, Pgh, Pa Suite 1412.

I do not know about the size restrictions on the parcels, but I would think that they would be interested if parcels were connected.  Our offer expired on Thursday.   I have 50 acres.  One of the neighbors has somewhere  between 400-500 acres.  Almost a full unit....WOW for him, if and when they drill, beside the bonus amount.  He was the leader of the get together and put together a great adendum to the lease.

Don;t want to count my chickens before they are hatched.

A good site to go on to find an understandable explination of the drilling.

go to www.energyus.neet

on the upper right hand corner will be videos, there are two....

the best I have found so far.

Lets hope that things continue for this area.....they know what they are doing, and what their

plans are...otherwise they would not even be talking to you....

Comment by randall gottus on March 18, 2011 at 11:03pm

I could not find the phone number or the address of EnergyUS. Also my parcels are only 15 to 17 acres each, and they may want larger.  What is your acreage size?   Thankyou

Comment by Terry W. on March 18, 2011 at 9:47am

The company is EnergyUS.  They have an office in Butler.  Yes, I too understood that the Marcellus in

this area is only 50-100 feet in thickness.  I am sure there is a good reason, looking toward the future to trade, I would presume.  With no infranstructure in the area, but you never know what next month might bring.

Now just have to wait for the title search, acceptance, and then the check...

We shall see, I will not spend any of the bonues money till it clears the bank..

Comment by randall gottus on March 17, 2011 at 10:25pm

I thought that the marcellus shale was not that desirable in nothern butler county, and that it is difficult to get a lease for just the marcellus shale only.  What company is that, since I have some land in that area?    Thankyou,