Replies to This Discussion

LandownerPermalink Reply by Rich on February 16, 2014 at 3:53am

Tim shell re-signed my neighbor about 6 months ago down here in little beaver twp. By the turnpike for 1900.00 per acre an 19% royality. Which I think is way to low. Should be upwards of 4500.00 per an 20% royalties.

Oil/Gas ProPermalink Reply by Tim on February 16, 2014 at 6:47am

Ok, ty. Any other info out there?

LandownerPermalink Reply by Trapper on February 18, 2014 at 12:31pm

Rich, What was your neighbor's first lease like? I have heard Shell leased up some chunks for $3.00/acre @12.5% royalty years ago. I have heard the Pattersons fall under this category.

Glad to hear Shell is re-signing folks , should be a positive sign.

Also do you know if that 19% is without deductions?

Thanks

LandownerPermalink Reply by Rich on February 19, 2014 at 1:51am

Trapper, his previous contract was 100.00 per acre an 12.5%. About five yrs ago. As far as his current contract I don't know anything other than the 1900 &19%. An as far as mr patterson's contract if I remember I think he told me it was 10.00 per acre. Signing bonus.

Your welcome, Rich

LandownerPermalink Reply by Rich on February 24, 2014 at 7:01am

Hey trapper.
I talk to another neighbor an he said they re-signed back in oct. for 1400.00 & 14% Roy. After deductions

LandownerPermalink Reply by Trapper on February 24, 2014 at 10:13am

Man that sounds low. It is low compared to what they were paying when I signed in Oct.2011. My hunch is these folks originally signed with East Resources who were subsequently bought by Shell. I got 3000 and 15% no deductions and a re-sign agreement at the same terms.

LandownerPermalink Reply by Rich on February 24, 2014 at 12:31pm

Yes we all signed with east resources. They signed for a lot less than what they got now. I have 15 months on this lease. If I make it to the end of this lease I'm gonna hold out for 7000.00 per

LandownerPermalink Reply by Rich on February 24, 2014 at 12:32pm

And 20% after deductions

LandownerPermalink Reply by Trapper on February 24, 2014 at 2:03pm

I hope you get it! That kind of money has been paid different places I have heard.

LandownerPermalink Reply by Rich on February 24, 2014 at 2:25pm

IMHO I think there is more wet gas an oil than people think. I have been on a couple of Rex energy well sites in butler co. With 8-10 well heads. An they have had to put up small condensation plants for the wet gas.the lines they are putting in now to new Middletown is the last piece of the puzzle that I need to see. I think it will be at least another year until things really kick in. An I think everyone involved will be pleasantly happy. God willing.

LandownerPermalink Reply by Trapper on February 24, 2014 at 2:52pm

That's what I've been thinking for a while too. Pray we're right!