What should I expect, per acre, on a re-lease of my property in Middlebury Center?

We live in Middlebury Center - have 12 acres on a 5-year lease that just expired a week ago. Shell just contacted us today to come out and discuss re-leasing our land. I thought Middlebury Center was a dead zone for re-leases, but I guess not? What would the approximate expectations be, in dollar figures, per acre of re-leased land here?

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Permalink Reply by Golddigger on June 28, 2013 at 11:16am

Michael,

 I am guessing your offer will be $300/acre with a take or leave attitude. Just a hunch, but curios what it actually will be.

Permalink Reply by Michael Reid on June 28, 2013 at 1:13pm

Wow.......that low? ........ Original sign-on was $2,000 an acre. Bradford County areas are still getting that and a lot more.

Permalink Reply by Darrell Weaver on June 28, 2013 at 3:59pm

I know of a person somewhat close to u. Lease expired end of May Shell offered  300/12.5.

He told em to pound sand. They came back in a week and are now talking again...

 

Permalink Reply by Michael Reid on June 28, 2013 at 11:45pm

Doesn't sound promising. We signed on initially at $2,000/acre. Not that we need that amount again, as the potential royalty is more the end desire, but $300/acre or worse.........not going to happen for me.

Permalink Reply by Thomas Lilli on July 2, 2013 at 10:10pm
WRT royalties, from what I have learned about production curves etc, your bonus payment may very well be the payday here.

Having watched this from 2006, one thing I've learned is, there is no substitute for qualified and capable representation. Another thing is, G&O companies are on for the long haul.

You are smart to float questions here. I'd call an experienced G&O attorney. It will be money well spent. Clark seems at the top of his game IMO.

Did you have any dealings with Jackie Root or any of the other land group organizers in your area. I knew there were at least two up in there.
Permalink Reply by Billy Park Whyde on June 28, 2013 at 4:02pm

  They wouldn't bother if they were not interested, the price is set at what you want it t be. Buy the way I made a post that drew no attention but Obama cut hundreds f thousand of federal lands out of shale exploration, it has the O&G companies raising H so I think the value of private land increased.

Permalink Reply by Michael Reid on June 28, 2013 at 11:48pm

..... Obama probably has that excluded fed-land slotted for drone runways.....

 

Permalink Reply by Joe Livorno on June 30, 2013 at 2:59pm

Barnsville , OH  in Belmont county was paid   $5700 an acre plus 20% royalties. This is a five year lease

 

Joe Livorno

Permalink Reply by Tom Brian on July 1, 2013 at 11:01pm

Just talked to someone that took the $300/15% /5y, their old lease  had expired, drilling is all around them and they are already in a 1280a. plot and will likely start getting royalties as soon as pipe is laid ........  mabe not a good time to wait for someone else to come along with a better offer ?  as they said something is 100% better than nothing........ this is not far from you.

ps. look for a lot of plots to resize up to 1280a. and more holes on a pad,  Just saying.

Permalink Reply by Brian Day on July 3, 2013 at 1:45pm

If your lease limits the size of a unit you can be included in to 640 acres, they cannot put you in a bigger one - unless they offer some kind of new lease.  $300 an acre is an insult.  15% royalty won't amount to much either after production costs are chopped out.  Shell should SH or get off the pot.

Permalink Reply by Gringo on July 1, 2013 at 5:20am

 Micheal,

 Golddigger is right, 300 is what has been offered to others expiring.Shell did not return with better offer and filed surrenders. What is a fair price is the million dollar Q. 08 nat gas was $12-14 today $3.58.The key is to know what you have. 12 acres they can unitize all around you with you being a island in the middle of a unit.If your property is long and narrow and runs east to west you could screw up plans for 1-2 drill paths.A square 12 acres is not going to be critical.Keep us posted on developments, knowledge is power.Next time post in Tioga county forum so we keep things straight,ohio utica #s are long ways from our dry gas #s.Any rumors on the Gee vertical into the trenton since its very close to you.

Permalink Reply by Deb Reynolds on July 2, 2013 at 1:07am

perhaps it would be nice to have an explanation somewhere of how to keep things straight by county. I have been reading here for quite a while, and can never figure out where people are, unless it's spelled out in the post. I knew that there were different forums for each county, but not how to get to them, and this is the only feed I get from this site, although I signed up for several counties originally? so confused....thanks for all the info, though!

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