Leases Offered in Noble County

I'm new to "gomarcellusshale", as well as new to this business.  We have a 152 acre farm with "Clinton" gas wells which supply our needs.

We've been approached by Fossil Creek Energy Corp (FCEC) for $50/acre, 12.5% Royalty, and $10,000 if a well is drilled.  We are sitting on the Utica Strata.  I've carefully read the lease and am very suspicious of the terms.  We are consulting attorneys.  I don't see any members from Noble County..and some interesting notes from Guernsey which lead me to suspect the FCEC lease.  Can they broker a lease after signing "cheap"?

We have news of ARTEX Oil offering leases in our County, they're out of Marietta.  Any comment on FCEC, ARTEX, and my suspicions would be welcomed!

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Replies to This Discussion

Permalink Reply by joe on July 28, 2011 at 4:33am
Eclipes is out of Pa, They have been trying to get us to sign, they offer 2250.00 per ac 15 % rolalities, we didnt like the lease because of the storage clause. but they have since then revised it and we are considering signing the new revised version,  if you give them storage rights, basically they can hold the lease indiff, at least thats what Ive been told. David Deal is the landman who is doing our lease. I check this company out on the internet they seem to be liget or they went to BIG lenghts to seem so. I called and spoked to the company land man. David does work for them and the are planning a well for Oct, or no later than before the end of the year, they tell me they are not a flipper, they will be the one drilling
Permalink Reply by scott peterson on July 28, 2011 at 8:15am
The KWGD meeting is at the Pritchard Laughlin Civic Ctr. in Cambridge on Tues 8/9 with William Williams & Nathan Vaughn.
Permalink Reply by Christiane Marshall on July 28, 2011 at 9:11pm

Please forgive me if I'm having trouble following the discussion! Is KWGD a gas company? Are the meetings you are all talking about held by the companies who are looking to sign deals with landowners?

 

Is anyone attending the meetings given by the Buckeye Hills-Hocking Hills Regional Development District? One for landowners and one for the community?

 

If you haven't received the email, send me your contact info and I'll forward it to you. It won't let me right click. I was going to paste it in here.

Permalink Reply by scott peterson on July 28, 2011 at 11:40pm
See my answer to your question on the Guernsey Cty forum. They are interested in landowners joining their groups in several counties. Law firm out of N. Canton with an oil & gas division. Have successfully negotiated lease deals which have closed & been paid in Ohio for groups they have put together, so they have a track record which is important to me. Extremely professional.
Permalink Reply by Christiane Marshall on July 29, 2011 at 5:40am
Thanks for the explanation!
Permalink Reply by Private KeepOut on July 29, 2011 at 4:47am

I plan to attend this meeting....just got the package yesterday and I noticed their fee is now 5%.

 

Permalink Reply by Nelson Roe on July 29, 2011 at 5:02am
Yes, they said that it was going to jump 1% after August 1.  I believe they were trying to have a majority of the group recruited by then.  Because when they have people join later in negotiations, they have to go back & re-work the mapping of the area that the group represents.  Hence the higher percentage for anyone that joins later.  This is still a relatively low number.  I have met with some groups that want to take as much as 8%  & then there are some reps that will take 5 or 6% of the initial signing bonus, but they also want 1% of the royalties if/when the landowners start to receive them.  So, in all honesty 5% of the initial signing bonus only still is not that bad of a deal in comparison to some of the other proposed deals that I have ran into.
Permalink Reply by Nelson Roe on July 31, 2011 at 3:00pm
I found out that this will be the last meeting that KWGD will be holding that is open to everybody. Any meetings after the one on the 8/9 will be for group members only. So, if anyone is still trying to make up their mind about who to sign with, I would highly recommend attending this meeting. Even if they decide not to sign with them, there is a wealth of information in the presentation that KWGD puts on.
Permalink Reply by Christiane Marshall on July 31, 2011 at 3:10pm
I'll be traveling on the 9th. Is there any way to "attend" remotely?
Permalink Reply by Nelson Roe on July 31, 2011 at 3:15pm

Hi Christiane,

I am not aware of the meetings being offered remotely, but I have copied a section of the announcement for the meeting that is on the KWGD website.  It gives you some contact info to where you could call or email & discuss.  You could also email Nate Vaughan directly, he is very good at giving timely responses.  His email is nvaughan@kwgd.com. 

 

Here is the contact info directly from the site:

Information kits will be available at this meeting. If you are unable to attend and would like a free information kit, please contact Paralegal Machelle McBurney at 1-877-876-9958.

 

If the information kit is still the same as the ones they gave out at the meetings I attended, it will include a printout of all the presentation slides that they use.  Then I would imagine that you would be able to call/email to discuss any questions that arose after you saw the slides in the kit.

Permalink Reply by Christiane Marshall on July 31, 2011 at 3:28pm
Thank you!
Permalink Reply by Nelson Roe on July 31, 2011 at 3:40pm
You're very welcome!

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