Replies to This Discussion

Permalink Reply by robert young on November 11, 2010 at 1:03pm

I am in columbiana county and we have been offered 2000 per and 20% but havent done nothing yet. With the utica shale there also i think the price could go up further. Chesapeake is supposed to test drill here shortly and i guess we will see what happens after that.Maybe better maybe worse.I havent been following much because im part of a land group and i have been following their lead. they seem to havfe a handle on it. If you can join a local group, power in numbers in this game for sure.

Permalink Reply by Aaron Yeager on November 12, 2010 at 2:22am

Daniel,

I know a couple other people who have been offered 1000/acre including myself. I have 35.5. acres. I've only been offered 12.5% but I haven't really started negotiating yet. I'm just kind of playing the wall and watching what's going on. 1000/acre for 150 acres is a pretty nice sign-on bonus!!! I definately suggest you read Chuck White's contributions to the forum. I know I've found his postings to be very useful. Also I suggest you read a website that he's posted http://www.wvsoro.org/resources/minerals_royalty/Gas_Lease_Addendum...

It's got a lot of useful information! Good luck in your negotations.

Permalink Reply by Chuck White on November 13, 2010 at 12:11am

Daniel

We settled with DPS-Penn for the $1000.00 and 15% of net revenue plus the approved addendum items listed on Jefferson County site.

I'm more than a little concerned about what may happen with our President and what he is working on as far as an EPA executive orders that may stop all Marcellus shale drilling in order to study public health concerns.

Anything to hinder economic growth, coal, or gas production seems to be on the agenda.

I have a good friend in West Virginia, that signed for $3000.00 per acre two years ago, and before he received his check Chesapeake cancelled the lease agreement because the price of gas dropped significantly. They later renegotiated for a lot less.

Take Care
Chuck

Permalink Reply by Bert Ault on December 15, 2010 at 3:25am

Hi Chuck, My name is Bert Ault and I have an existing lease with Fortuna/Talisman that will expire in Oct 2011. DPS has approached me for renewal at 800/acre and 14%. They gave me a sample contract and it only had right-of-approval for location. Where can I find the approved addendum list that you mentioned?

Permalink Reply by Brian O'Neill on December 6, 2010 at 4:44am

My family also owns land in this area & have had the same offer -- we believe this to be LOW.
Are you aware of any "neighbors" who have had similar offers &/or signed with DPS ?
There are other companies out there.
Things are just beginning to heat up in eastern Ohio.
Be sure to separate Marcellus Shale rights from Utica Shale rights.
Have you hired an attorney yet ? We have been advised to do so.

Permalink Reply by John Yaskanich on December 22, 2010 at 4:09pm

Dear Pleasant Hill  150 acre landowner on SSR 213 in Island Creek District.  I have 117+ acres off SR 213 on twn road 471 near hammondsville.  You may be priceing yourself out of the market.  Remember that stock symbol CHK on the NY stock exchange is buying your gas and if they can buy much more down the road for less and get plenty of oil to boot for a smaller but fair percentage; then you figure it out.  They have already said on CNBC that Cheesepeake is finished signing gas leases and is now going after the oil.  I hope it's not too late for you.  Get some Starbuck's and WAKE UP!

Permalink Reply by David Mohn on December 28, 2010 at 5:00am

If you check out CHK website and see what the CEO states in his letter to stockholders what their goal in the coming year is.  Their goal is to have 30 to 40% of their cash flow coming from oil.  Now I have also heard that the Utica play might actually contain oil along with gas.  I know over here in Ohio CHK is leasing up land and lots of it.  According to the landman I worked with, CHK is going deeper than the Marcellus.  That would mean the Utica.  Now one can only speculate that maybe the 40% is coming from the Utica??????  No fact here, just an opinion.