Have WPa Bonus and Royalties Peaked?

 

We're still waiting to sign and have lease offers in the wings....... should we wait a few more months or sign now? Will the $$$ go up? Has the interest moved to the Utica in Ohio and away from PA?

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Permalink Reply by James Kerns on December 19, 2011 at 9:15am

Again VG, very well said, and the Amen, and "Brother Jim" was a poor attempt perhaps, at humor, directed at some who liken our attempts at helping our neighbors to sift through all of this, as "Preaching".

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on December 19, 2011 at 10:23am

you know I think we do it cause we didn't like finding out later that the oil companies purposed using old out of date contracts with old type of clauses based on old pricing when the need for natural gas was not as high as it is today and they knew that they were going to use the 'unit approach' to hold production (and we didn't know all that up front and there was 'follow up' with waving what seemed to be much in money...without a knowledge that they only verbally stated 'oh yeah, you can re-negotiate in just five years' that easy.  

 I think that is why some of us share what info we can as our way to vent the frustration at the surprise of our own contracts/ communications if any with the oil companies after the signing of the lease.   And some it is just in our being to do right and to share.   "how would they learn except it be preached is even in the Bible".   I encourage others to share but I also know many are still learning about all this and do not yet feel comfortable at the discussion level..we encourage you to post.

Permalink Reply by Dave on December 19, 2011 at 9:15am

 

headline from the butler eagle today (associated press)

Drilling Production up Pa leases Down

"the land grab,like the gold rush is over"

"that means landowners have fewer options and less power to demand certain terms"

quoting Brian Pitell a rep for the National Association of royalty owners in Northwestern pa

"there is a muting ,to some degree of competition"

I am a landowner and I want a well this concerns us all

 

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on December 19, 2011 at 10:28am

David,   the transport interstate line isn't even under the ground in all areas yet.   Don't worry when the transport line gets more established those feeder lines to it will make it all possible for the flow of the natural gas....then those  leases that are in place already will be worth more and the leases that still get negotiated should receive more top dollar unless the price of natural gas goes way down and even then that is only temporary as more turn to natural gas for transportation and heating, etc....but this is winter.

Permalink Reply by Dave on December 19, 2011 at 11:08am

vg

signed my lease moneys in the bank

infrastrucure will be a issue

when shell announces the location of the cracker plant it will bring more infrastructure with all the venango co signings it will be hear sooner than later

all that money was not spent on a whim

the r.o.w. negotiatons will give us all something to discuss in 20102

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on December 19, 2011 at 1:25pm

thank you for the encouragement...yes it wasn't spent on a whim...but it wasn't even near what they should have gave up front knowing the terms of the contract were on their side (ex. unit clause, delay rental and storage at $5per year per acre).  There still is so much unknown..and when I read the stories about how some companies just flip the lease and don't care if they ever drill (the company I have does drill)..I feel sorry for the residents of Pa...my dad passed not so long after doing the contract and he loved the farm and his parents and their parents also...so I really was surprised when I joined this forum and found what he really signed was not what he was told (he should have used a lawyer but out of state he didn't know who to trust....he sure did enjoy the landman calls...he felt like a young man in those negotiations.)   Even with the landman misconstrueing facts and keeping dad from marking out some clauses that should have been redone or marked thru....It was still pleasant to see how he thought he was making a big deal for the family, he was 86.            thanks.

Permalink Reply by Dave on December 19, 2011 at 1:39pm

my father signed his lease in clarion for 3000 bonus and $5.00 an acre

timber went for 5k upfront he enjoyed the company of the timber co and landman and disregarded my input to let me review

I know what pain is, dad is gone now but the land is not someone elses issue got my own now....

Permalink Reply by SBRW on December 19, 2011 at 2:15pm

Just what the gas companies want the media to say.  Money controls the media, advertising etc... I don't believe much of what I read or see on the news at this point.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on January 15, 2012 at 4:18pm

With Shell's soon to be announced cracker plant location and talk of several other cracker plants coming to the tri-state area..........Has there been any upward movement in lease offers? I would assume there is an abundance of "wet gas" in this vicinity inspiring such huge investment so was wondering if offers reflect this.

Permalink Reply by Bob Moran on January 16, 2012 at 2:15am

I spoke to Shell last week. No change. They're still @ $3250/18%. I haven't heard from Hilcorp in a while.

Permalink Reply by warjr on March 4, 2012 at 6:51am

Bob, where is Shell looking and do you have a contact name, number.  Looking for someone for the Crawford County area.  I have not done much in terms of serious inquiries other than recently a  Reserve Energy fellow contacted me.  Got 75 acres in Crawford County just over the Mercer County Line and just east of Pymatuning dam.

Permalink Reply by Bob Moran on March 4, 2012 at 9:04am

William  --   Friend me.

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