Replies to This Discussion

Permalink Reply by Jason N on October 13, 2011 at 6:30am

Out here in Hookstown they have been approaching us for 3 years or so. I never called anyone and let them initiate contact. They started at 300/12% and now up to 2500/17% so in my experience, let them come to you. I've been approached by both Range and Chesapeake. FYI there is a shale gas expo today that you may want to attend today up 76 in Cranberry. It's at Cranberry Woods industrial park's regional learning alliance building. A law firm will be discussing lease terms at 2pm.

Permalink Reply by Nancy LeNau on October 13, 2011 at 10:06pm

Jason, Hookstown is now at $3,150.00 and 17 1/2 gross. I expect it to go up a lot !   Best of Luck to you !  Nancy     ps. This is Chesapeake.

Permalink Reply by Jason N on October 14, 2011 at 6:19am

I heard this rumor from another neighbor as well.  I think waiting will pay off!!!

 

Permalink Reply by Lawrnece J. Carmalt Sr. on October 16, 2011 at 8:20am

For your information here in Belmont County Ohio we just signed for $4950. per acre signing bonus and 19% Royalty.  So my advise to you is to hold out for more.  Jefferson County, Ohio also got $3,700. per acre and 17% before Belmont County Ohio settled for $4950. and 19%.  So unless you need the money now, my advise to you is to hang in there you may get more than you are currently being offered.  Keep in mind the Gas and Oil companies are well aware of the true value of the gas, even though they may be low-balling the public.  One gas well in Ohio got 9,000,000 cubic ft. of gas per day from just one well and they also got 1,200 barrels of liquid byproducts.  

Permalink Reply by Keith Mauck (Site Publisher) on October 13, 2011 at 9:14am

I have always found that patience gives you the best bargaining chip. The bottom line is, when/if they want you - they find you. It's not necessarily easy though. Once they contact you, you need to be have your ducks in row and know the number you need to lease.

Permalink Reply by Carol Lanza on October 13, 2011 at 2:54pm

Hi Keith,  Just joined this site.  Everything is new to me.  Never even in my craziest dreams would I have thought I would be even researching this.  My parents owned a 156.7 acre farm near Avella, Washington Co. PA and sold it in 1963 when I was very young.  I remember very little about it.  I did know we had the rights to all the free gas we needed to heat our big 13 room farm house from wells or a pipeline on the farm.  After my parents moved I remember my dad saying no one else would have free gas after that.  I didn't know why.  Last week I received a letter in the mail addressed to me and my husband, with my name first, from an "Oil and Gas Consulting Com." from Washington, PA.  Seems that they did some research both genealogical and legal and found that I may be the heir to the OGM rights on that farm.  They don't mention that farm in particular but it's my guess.  My parents owned 1 acre of land from 1970 until 1989 south of Claysville also.  I wrote this consulting company back by e-mail and told them that quite frankly it made me uneasy that they were looking into my family tree. The did answer me and they want to meet with me to see if they can help me.  Well I live in Ohio so I guess I'm making a trip to Washington County but also going to meet with an attorney there the same week and making a trip to the County Recorders office to see what I can find.  I found a copy of my parent's deed to that property online and downloaded and printed it.  I don't know legal language but it appears they owned the OGM rights.  Now I don't know what to do.  I do know the gas companies are drilling in that area as I saw it on the news here.  "Anything" you can tell me would be of great help and interest to me.  Thanks!  

Permalink Reply by Finnbear on October 16, 2011 at 8:44pm

You or your attorney need to do a full title abstract on that property your parents owned back then and do it soon. It is possible that your parents reserved the mineral rights when they sold the farm and then forgot about them as time passed. If they did keep them, you may be heir to those rights and if you are, you should document that fact through your attorney's work and then determine the best way to market them today. 156.7 acres could result in a 6-figure plus lease signing bonus for you.

Permalink Reply by Jim Litwinowicz on October 17, 2011 at 9:59pm

Carol;  you need to talk to a good oil and gas attorney that can practice in Pa. If you need one, I know of a good firm in Washington Pa that can help. I am not an attorney but a landowner that has worked with them. Email me at landownerslease@hotmail.com

 Keep in mind the people from the gas company are working for them and not you.  They are very well paid the get the company the best deal possible. Don't believe anything they tell you and insist that everything be put in writing.

Leasing is very complicated and I know attorneys that have hired oil and gas attorneys to negotiate for them.  Don't try this without professional help.

If you own the rights to the larger tract, you will also need to talk to them about financial planning as this could be very lucrative.

 

Best of luck!