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Permalink Reply by rmc on February 26, 2014 at 12:48am

Hello I'am from the Greene County PA area and know of a few people that did a top lease with a company for 3 thousand dollars an acre and 15 percent gross royalty.
A couple months later a group was formed out of Washington pa and some of the there neighbors ended up signing with the same company for around. Five thousand after cost deducted for the the group per acre and 18 percent gross royalties.
The point is there is always strength in numbers even if it's just a few neighbors together.

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Permalink Reply by Alan Bowers on February 26, 2014 at 9:25am

There is strength in numbers. Another good example would be the groups of landowners that were put together by ALOV in 2011 (leases with CHK) and 2012 (leases with BP).

Something else to take into consideration is whether or not you land is in an area with proven ground (producing wells nearby).  Typically you get more per acre if the oil company knows there are other successful wells nearby.

Also, does your existing lease allow for the Lessee to have the right of first refusal?

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Permalink Reply by Gusher on February 26, 2014 at 10:56am

there is no upside to a top lease unless you badly need the 5% you well get before your original lease expires. if values go down they simply will not execute lease and will give you a new number. if values increase you are out. the closer your lease gets to expire the more folks will contact you for new lease. my vote would be no way

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