CARROLL COUNTY CONFIDENTIALITY AGREEMENTS

For a county that has the most wells drilled, it is certainly quiet on this site.  I would love to hear how much people really get per acre and how much people are being offered for their mineral rights.  It really would help in making a decision on whether to sell mineral rights or not.  It must be confidentiality agreements keeping everyone quiet.

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Permalink Reply by Anonymous on March 3, 2014 at 1:48am

Im in carroll county and I have to agree.   We received our up front money and nothing since.   We have wells all around us are in a unit but as of today no more paper work.    The only offer for mineral rights were so pathetic they went in recycling without a second glance.

We are in the the walters north unit perry township

Permalink Reply by Mark McGrail on March 3, 2014 at 2:24am

mary ellen,

I have found that many landowners that receive royalties are reluctant to discuss that subject publicly.

Permalink Reply by Fred Flintlock on March 4, 2014 at 4:10am

Like you have to use your real name on the internet.......

Permalink Reply by Bryan on March 3, 2014 at 3:01pm

I would suggest that most property owners in Carroll County have been surprised by the number on there checks after the first couple checks. The numbers are smaller than advertised by many of the landmen that sold the snake oil. Why: lack of infrastructure, no NGL processing, pipeline restrictions, drilling method, fracking method, etc, etc. these questions will only be answered with time...

Only a small fraction of wells are really producing as of 12/2013, so only a few (compared to what's coming)are really receiving royalties. 2014 and 2015 will be big years for bring wells online, which mean royalty checks.

The lease that you have, has a huge factor in the number on the check, 12.5 to 20 is a big difference. The price of the commodity going forward, plus it looks like location will also be a bigger factor than first believed or at least what was again sold to us by the landman.

It's not confidentiality agreements, its just common folks keeping there personal business, personal.

I would use $150.00 per acre on a 12.5 % lease as a base number for year one(12 checks), if you have a higher royalty number do the math. After year one, then the questions above will need to be answered to see what happens.....if what we have is what we have then the decline curve might surprise us all and a below 100 per acre per month could be a real reality moving forward.

I know your going to say no way, your not in the know, etc, etc..go ahead I have heard it...so I show them my statements for numerous wells and they are surprised.

Don't misunderstand my comments, I hope it gets better...and its still real money that comes every month and it adds up.

Permalink Reply by Happy for hardworking Farmers on March 3, 2014 at 7:15pm

Agreed, I would imagine the fact that many wells are throttled back significantly plays into the lack of real knowledge of worth so far. In time, you may be pleasantly surprised. According to Chesapeake "As a result of the infrastructure and operational issues, the vast majority of Chesapeake’s wells that are connected to sales lines are on restricted choke and have not been producing at full capacity". Hold onto your minerals.

Permalink Reply by Dott on March 4, 2014 at 3:28pm

BRYAN,

I read a lot of posts about how much people receive in royalties per acre but no one ever clarifies if the amount is before or after deductions. And what about taxes?  Please clarify

Permalink Reply by Bryan on March 6, 2014 at 2:27am

Dott,

I can only speak about my personal checks and that number is what is on the check. So if the Oil company is taking deductions they have been taken out and I don't know about it. My statements don't list any deductions and I don't know of anyone's statements that have. This includes net and gross leases, which I have both. Meaning if there are deductions being taken its being taken before the reported sale price of the commodity on the statement. Taxes for me personally aren't being with held, so I'm responsible for reporting and paying my taxes and its considered earned income.(not a good thing) 

My neighbors and I get together on various wells and compare are monthly statements, for volume, price, deductions, etc. Within these units there are many different leases, net, gross, 12.5% to 20 %, so its interesting and a checks and balance to see what is reported to each of us.

I get ask a lot how do you know they are reporting and paying the royalty correctly? I don't believe there is any way to know this. I check the numbers reported to the state on the wells I'm in and try to balance back what was reported on my statements. If someone has a way I would be interested to know how.

Hope this helps.

Permalink Reply by Dott on March 6, 2014 at 5:07am

Bryan,

Thank you for your reply. Concerning checking the numbers. I recently asked my Lawyer about this (for the future) and he said that there are companies out there that do this type of auditing. He suggested getting others in a unit together to share the cost. And it doesn't have to be ongoing but just once or every now and again. I have read the same thing from others on this site. Can I ask are you in a dry gas area?

Permalink Reply by Bryan on March 6, 2014 at 8:55am

No, I'm in Carroll County Lee, Loudon, Union, Perry townships are my main acreage. Wet Gas area.

Permalink Reply by INVICTUS on March 3, 2014 at 11:48pm

Just short of 15K/Acre best offers.   It may be worth between $30k-$40k/acre total cash flow. IMHO

Desire to help others is always tempered by need for discretion.

Choked back is good, particularly in light of the old saw: don't kill the goose that lays the golden egg.

Besides, the gains in techniques for reserve recoveries are just absolutely amazing.

Oil recovery is usually about 5%. Gas maybe 20%-30% recovery. Most of it is still left behind.

This whole process is getting better at an absolutely staggering rate. Really cutting edge.

Remember, these well pads are built for 40-50 year lives. Really overbuilt.

Permalink Reply by mary ellen on March 4, 2014 at 4:29am

Thanks for the input.  If someone has to sell minerals in Carroll County, what should the minimum selling price be per acre? 

Permalink Reply by INVICTUS on March 4, 2014 at 4:44am

Ok, I'll answer this.

Mary Ellen:

1) Are you Leased? and do you own your minerals?

2) Are you in an area that has been permitted?

3) where are you? County & Township?

4) If permitted, with whom?

5) If leased, what are the terms of your lease? Need that plus your royalty rate.

 That's just for starters.  This is what buyers of the lease will look at.

There is no one price for everyone. only generalizations.

Smart Buyers will already have most of those answers for these questions BEFORE YOU DO.

Silly Buyers (Such as a variety of royalty trusts) won't. they offer less.

Now that the lecture is over, I always USED to believe that, when the price offered exceeded the value of the land, it was worth a serious consideration.

Prices will go down (and have) once most of the land of interest has already been leased.

Summary: this has to be looked at as a financial/business transaction.

My price?  I'm holding.

My situation may not be yours. You've got to reach into your situation and do some hard thinking, homework plus tax consequences.

Set your price YOU Need. That's your bottom dollar.

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