Replies to This Discussion

Permalink Reply by Bill on October 13, 2009 at 2:37am

We have been in a lease with a smaller local company for about 3 years, expiring very soon. The terms were pitiful compared to other county terms I've heard about; $10/12.5%/3 yrs; boilerplate lease (less than two pages), and no auto renewal. Company is bugging us to sign one year at same $10/acre and 12.5% royalty. When I spoke with them, they indicated they are NOT doing any Marcelllus wels, and areonly interested in vertical and I assume shallower wells (we already had one on the property). Frankly, I'm skeptical, and worried about being "held by production" if I sign and another opportunity for Marcellus turns up. Working with an attorney on a counter-offer that will protect my interests as land owner. Neighboring land owners have similar leases, with another company, although research on the Butler County recorder of deeds site indicates longer lease terms (up to 10 years).

I'll keep this forum posted; glad to see a Butler County group!

Bill

Permalink Reply by Rob on October 13, 2009 at 2:47am

Bill
Thanks for the Info. I live in the Lancaster Pa. area and own around 375ac of Gas & Oil in Butler Co Venango Twp. Living out of the area I don't get the local property owners info. So thanks again and keep me posted. One quick question did you ever hear of a company in Canonsburg Pa. called Rex Energy. They supposedly due leases in Butler County
Rob

Permalink Reply by Bill on October 13, 2009 at 3:33am

Your welcome, Rob. I too do not live in the county where I own the land, so I can sympathize. It's often hard to get info. The recorder of deeds site is free, and if you know the neighbors name, you can view all of the leases for that property.

I have heard of Rex Energy. They are a big player in the Marcellus, and I keep hoping to hear from them. I may even contact them, but I don't now how effective that is.

Bill

Permalink Reply by Rob on October 13, 2009 at 11:07am

I will let you know. I got the info to contact if you are interested I will send you contact info
R

Permalink Reply by Bill on October 22, 2009 at 4:19am

I'd appreciate that, Rob. Sorry for the delay in reply, been away from the computer for a while.

Bill

Permalink Reply by Terry W. on February 17, 2010 at 3:59pm

Rob:
2-17-10
Here in Venango Twp...Saw in the Butler Eagle about a month ago that Rex is opening up
an office in Butler. Tried to get a phone numer, but must not have been open yet.
Just joined a group to represent local landowners. 15%.

Permalink Reply by Rob on February 18, 2010 at 1:10am

Great to have you. Keep me posted about Venango. I live in the eastern part of Pa. So any info is much appreciated.
Rob

Permalink Reply by Sam Douglass on February 19, 2010 at 3:39pm

Lease can be designed so you only lease to the company oil and gas at certain geological level -
say, "strata which are at least 100 feet above the top of the Marcellus Shale formation"

Permalink Reply by May on October 16, 2009 at 1:57am

I've been looking into Rex Energy, and it seems like they're pretty committed to Marcellus Shale development in Butler County. I believe they're the only company to have drilled a horizontal well in the county so far. I remember when they were drilling back in the spring, and I drove by the well in August and there were barely any signs of the drilling pad. Also, I've heard in their radio ads they're the only company in Butler to have built a gas processing plant to treat the "wet" gas. I listened to a couple of their CEO's presentations posted on the company website, and Rex will be running a horizontal rig in Butler all of 2010.

Permalink Reply by Rob on October 16, 2009 at 2:25am

I see they are going to speak at the dug conference. Has anyone ever gone to those things or are they just for companies in the G&O bus.

Permalink Reply by ric barr on October 23, 2009 at 5:02am

Rob, what kind of $ per acre are you looking for?? They should start to pay a fairer price now that they are pushing the price of gas up, don't you agree.

Permalink Reply by Rob on October 23, 2009 at 5:48am

Well yeah...

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