Replies to This Discussion

Permalink Reply by Terry W. on September 1, 2011 at 2:48pm

Chris:

Have you talked to Exxon?

I talked to both Shell and Exxon.

Shell is 3,000 and 15% without deductions.

Exxon is 3,000 and 15Net.  They will not budge on the Net.

You would think that they would at least meet competition.

I am in final negotations with Shell.

Permalink Reply by Gasman on September 6, 2011 at 3:13am

Chris you might want to wait....Exxon is higher than you have listed. Numbers are going up!

Permalink Reply by terry hazlett on September 10, 2011 at 1:06am

Gasman , do you know what the numbers are ? Chris , Terry , and gasman , what twp are you guys in?

Permalink Reply by Terry W. on September 10, 2011 at 4:43am

Terry:

Venango Twp.

Permalink Reply by terry hazlett on September 11, 2011 at 12:47am

Thanks Terry ! Getting ready to lease and trying to get info ! I'm in clearfield twp .

Permalink Reply by Chris Catalfano on September 11, 2011 at 4:57am

Allegheny Twp

Permalink Reply by ShaleAdvice (Steven C. Townsend) on September 11, 2011 at 10:21am

I can tell you that the nubers are as high at 6k/acre.  Be carefule of the new lease terms that are out there.  I would advise you to carefully consider any offer at this time

Permalink Reply by Jonathan A Jones on September 14, 2011 at 8:11am

Hi - My name is Jonathan and I am a first time poster!  I currently am involved in a landowner's group that spans southern Butler / northern Allegheny counties.  We have had meetings with both Range and Exxon.  Our current offer from Range is $3500 / acre, 17.5% royalties, 5 years (with no option to renew).  If we can get them to 18% and an all-in philosophy for royalties (meaning it doesn't matter where the well is - everyone in the unit gets their share of the royalties based on how much land you own) we will sign with them.  I'm not sure of exact acreage but it is somewhere around 1800 acres it is growing everyday.  Exxon was slightly higher but was adamant that we organize the plots so the unit was mostly contiguous.  Range said that they would "do some horse trading" to get the unit size they want (400 - 600 acres).  

Permalink Reply by JMS on September 17, 2011 at 7:44am

Yes, I have to say that I have found quite a level of comfort in consulting this entire forum for advice, guidance, cautionary remarks, and expertise of the members here.  You guys (gals) ROCK!

Permalink Reply by Sarah Violet on September 17, 2011 at 10:10am

Jonathan A Jones, I'm in Northern Allegheny County. Are you aware of any Landowners Groups in West Deer Township? Do you have to have a certain number of acres to join a group?

Permalink Reply by Jonathan A Jones on September 17, 2011 at 12:26pm

Sorry, Sarah - I am not aware of any landowner groups in West Deer Twp.  

 

The answer to your second question is more complicated.  I have personally been involved in meetings with representatives from both Range and Exxon (XTO).  Range told us that they don't really care if the people in your landowner group are contiguous.  Obviously, that is preferred because it is easier for them to form a drilling unit.  A drilling unit's maximum size is 640 acres +10% but we were told that they are generally between 400 - 600 acres.  Range explained that there is a certain amount of "horse trading" that goes on with parcels of land in the background between the various gas companies. It is rare in our area to find enough contiguous acreage that has not been leased out already unless one or two individuals have enough contiguous land to constitute the unit.  So in short, Range is trying to get as much land as possible because more land = more gas and they will deal with forming the unit at a later date.  

Exxon (XTO) on the other hand gave seemed to only want contiguous or nearly contiguous parcels of land.  The representative did not speak at all about trading parcels.  

So the short answer to your second question is that you do not have to have a certain amount of acreage for a gas company to consider you.  It is probably more important that your landowner group be comprised of landownders whose land is contiguous with one another.  

Start knocking on your neighbor's doors!  (and good luck!)

 

Permalink Reply by Sarah Violet on September 17, 2011 at 2:35pm

Jonathan Thank-you for the info.