Replies to This Discussion

Permalink Reply by Jonathan Peifer on September 15, 2009 at 7:25am

where in Tioga county is your property? which company wants you to sign lease with them? 350 an acre is low! I would not take 500 an acre either and 12.5 royalties is way low

Permalink Reply by Daniel George on September 16, 2009 at 11:51am

The property is in Shippen township. East Resources is the company that is leasing so i have heard. A realtor nearby claims to have half the mineral estate and wants to buy the other half for $350.

Daniel

Permalink Reply by Carol A on September 19, 2009 at 5:31am

Daniel, If someone wants to offer you $350.00 per acre for your minerals... DO NOT SIGN. If it is a local real estate agent, then they are just trying to scoop up mineral rights from out of towners. We own 56 acres in Tioga County. Last year offered 2000 at 12.5% which quickly went down to 1,800 then 1,500 --- we didn't sign because of the 12.5%. There is a well being surveyed about 5 miles from us and several in the area. Fortuna already has a lease on 20 of our acres expiring in 2010. We didn't sign in 2005 when we were offered $25.00 per acre... that really sounds crazy today... Even if you only own a part of your mineral rights...I wouldn' t sell! The 350/acre is now the new just crazy number!

Permalink Reply by Daniel George on September 19, 2009 at 8:39am

Thanks for the reply. I hope you can get good royalty percentages on your property. Cash in hand for a paid up lease sounds good now but the royalty money in the future could be more important.

Thanks again

Permalink Reply by Scott Wilcox on September 22, 2009 at 7:18am

Was that 350$ for minerals or gas rights? Real estate agents are part of the market also. A licensed agent must disclose this.

Permalink Reply by Daniel George on September 22, 2009 at 10:47am

He was offering $350 For the remaining half of the subsurface minerals. He claims to own the other half in the whole development. He may have purchased the rights from the one who retained them origionaly when the land was developed. He did identify himself as president of a company that builds cabins.

Permalink Reply by Scott Wilcox on September 22, 2009 at 7:15am

Are they still leasing in Fort Worth and how much are they paying there?

Permalink Reply by Daniel George on September 22, 2009 at 11:13am

There is not much that is not leased. I am only guessing. We leased about 3 years ago for $1500 per acre and 23%. It went way up from there as far as the prepaid money. the highest percentage I heard was 25 %. Leasing and drilling have slowed up with gas prices being lower but drilling is still going on. I would guess leases are going for 2000 to 10000 per acre and at least 20% if there is any land still not leased. Energy companies need 4 million to sink a well and there might not be enough investment capital to drill the leases they already have before they run out. The fort worth area has water available and gas pipelines and it is flat land. Tioga county will have more problems with frac water availability and the terrain is not as good for drilling. A big plus for Tioga is the gas distribution already in place.

Permalink Reply by Theodore Koncsol on September 22, 2009 at 5:04am

Our property in Sullivan Twp. recently had a pipeline go through. Fortuna put the pipe through. They are waiting on a permit to complete the last section through wetlands.

Permalink Reply by brian martin on October 27, 2010 at 4:04am

How nice...who is offering $6500. per acre and 23% royalties. We have been offered $2000. an acre and 15%. Doesn't quite sound like enough (in Tioga County). Please let me know who your lease is with so I can contact them.

Thank You,
Brian Martin

Permalink Reply by Daniel George on October 27, 2010 at 12:03pm

That offer was for producing minerals on the Barnett shale in Texas. Not a lease. They wanted to buy the minerals and they would get the 23% royalties. We leased for $1500/ acre and 23%
It is paying about $100 per acre in royalties. I had heard that East/Dutch Royal Shell is offering $2000 and 15 %. I was waiting for a lease offer on my property in Shippen township but i was told they are not leasing till after Jan 1st.
In my thinking I would rather have a higher percentage and less money up front. You can probably sell the minerals later if you have production. These days I don't think any one is offering $ 6500 to lease unless you have a Lake and a pipeline right there.

Permalink Reply by Lynn Wigglesworth on October 27, 2010 at 2:33pm

I know that bonuses were more than $5000/acre in Bradford county, with 20% royalties. I wonder if those days are over, or they haven't come to Tioga Co. yet. Ah, for a crystal ball...

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