Leasing in Ritchie County

 I'm part of a family of descendants who have the mineral rights to a small amount of land in Ritchie.  I was surprised to know we still have this.What have others experienced with Antero?  If I understand this correctly, the 'signing bonus' is for the primary/5 yr. lease. What is 'net acre'  What is the current royalty percentage people have?  Anyone know the extent of the oil/gas, etc in this area?

I'm sure our attorney will help me understand the lease but it's best to hear from those who have experience.  

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Permalink Reply by Nancy Mosley on September 12, 2014 at 4:15pm

The signing bonus is, as you said, for the 5 year lease. In "the olden days" there was a "rental" payment due every year for each year of the primary term, often 5 years. If the company didn't pay on time, the lease was void (unless they had a well that was producing and paying). In the "modern days" the full 5 years is paid at once, as a bonus, and hence the term "paid up lease" which you might hear or read.

A "net acre" is how much an individual lessor owns of the leased acreage. If the tract is 50 acres and you own all the mineral rights, you own 50 net mineral acres. If you own 1/2 mineral interest (sometimes written as "1/2 OGM" or something like that on the tax ticket) then you own 1/2 of the 50 acres or 25 net mineral acres. Etc. That doesn't mean that you own the south 1/2 of the 50 acres, but an undivided half of the total 50. The lease would be on all 50. But to pay you the bonus, they calculate your share of the total acres, and call it your "net mineral acres".

For royalty %, it used to be a typical lease was a royalty of 1/8  of the oil and gas (1/8 = 12.5%). However, most leases now start at 15% or more. BUT they have wording in the lease saying that you have to pay your portion (whatever % they offer, such as 15%) of the costs. Many people negotiate for a higher royalty %, such as 18%. They won't offer this at first. Some people negotiate (or try to) for a "no cost" lease. Antero puts up a fight about this.

There is a lot of natural gas and natural gas liquids in most of the Clay district in Ritchie, and a lot of Union District. These areas, near the Doddridge County border, and the Tyler county border, have a lot of wells, even more leases (and probably future wells). Other parts of the county, to the west and south of these areas, are starting to get wells. Of course there have been oil and gas wells in Ritchie county for well over a century, but for a few years (around 2010 until 2014) most of the activity has been in the east and especially the northeast portion of the county.

If someone has more to add, please do so, or correct my information.

You can go here

https://www.uslandrecords.com/wvlr/

select Ritchie as the county (the only selection at the moment) and select Antero as the name to search under, and see how many leases and other activity they have recorded. If you have the time, you can look at each listing to get an idea of what areas of the county have new leases, or modifications of older leases.

If your attorney is not familiar with oil and gas leasing in the northern West Virginia area, I'd recommend finding someone who is. I can recommend someone if you need a name, and there are other good ones around.

There is a lot of good information here and in the other forums in some of the other counties near Ritchie.

Permalink Reply by Mike Fulper on September 14, 2014 at 3:38am

Looks like all of Ritchie county is booked..

any leases on Indian Creek out of Beatrice  ??

I know of a hidden vein of silver on Indian creek...:)

Shawnee Indians lived all over that area...

Big indian camp at end of Indian creek at Beatrice..

Where airport landing strip is now.. on the hill...:(

Permalink Reply by Nancy Mosley on September 14, 2014 at 2:34pm

Hi Mike! I'd love to go see those places one of these days.

I think a lot of that area might be under old leases, and I don't think the new "boom" has gotten that far much yet. They are doing a little (horizontal well permits) over near Rutherford, a little other places, but mostly up in Clay district.

Hope somebody has more info. I just watch the weekly reports.

http://www.dep.wv.gov/oil-and-gas/GI/Pages/WeeklyReports.aspx

Permalink Reply by Mike Fulper on September 15, 2014 at 1:49am

There was a big Indian Settler fight at the head of Plum run and Indian creek..

in the LATE 1700's...

Indians hid the white women and kids in a cave... right there....

and im the only person alive that knows where that cave is....

Need to show some youngster some day to keep location known

You can stand 2 FEET from opening and NOT KNOW .. its there....

My Gma's Gma.. was FULL BLOOD SHAWNEE and lived in that area...

Makes me 1/16th...

Permalink Reply by Nancy Mosley on September 15, 2014 at 2:19am

If I were a youngster I'd volunteer. Caves sound sort of scary though.

Do you know where Henry Run is? near Plum but on the other side of Indian Creek.

There are some older wells in that area. We have some interest in that area. But I expect not where the cave is.

Permalink Reply by Harry E. Rose on September 15, 2014 at 2:36am
Mike, Nancy, The Indian Creek you are mentioning, is it in Tyler County or is tbere more than one in WVA? Iam aware of the one
In Tyler County.
Permalink Reply by Nancy Mosley on September 15, 2014 at 2:52am

Ritchie County. Tributary of the South Fork of Hughes River. In the southern part of the county.

I expect there are numerous Indian Creeks around the state,

Permalink Reply by Mike Fulper on September 15, 2014 at 9:15am

Beatrice on old Rt 47....

Where Indian creek ends.. at Hughs river...

back up on the hill was a BIG Indian encampment...

Private airport there now... weird...

Probably dead Indians buried there too....:)

When the Shawnee were run out of WVA on the TRAIL OF TEARS. to Okla..

they HID and Buried all there goodies in the area...

At the turn of the Century 1900 or so.. a group of Indians came back from Okla...

and spent a lot of days up Indian Creek up from Beatrice......looking for their goodies...

I know EXACTLY what "RUN" they were looking at....

Indians said.. HEAP BIG PROBLEM.... white man TIMBERED and filled in some.."runs"

and they could dig some stuff out... Indians had GOLD AND SILVER at that time..

silver vein on Indian creek up from Beatrice.... ME KNOW WHERE....:)

Permalink Reply by Harry E. Rose on September 15, 2014 at 3:48am
Thanks Nancy.
Permalink Reply by Alyce on September 15, 2014 at 5:37am

Please send information on an attorney. The one here does not do this. Just need it reviewed and maybe some suggestions to add.  The landman said he could "sweetin' the pot" with something like "hold harmless" clause.  Plus add money to sign.

 I could fax the lease then do a call. Thanks.

Permalink Reply by jason irvine on September 15, 2014 at 11:01am
Harry. The Indian Creek your talking about is in blue wv. Real close to middlebourne. I have property on 8 mile that attaches to indian. That's also the site of the big Moses well. Are you close to that area?
Permalink Reply by Harry E. Rose on September 15, 2014 at 2:10pm
Jason, You are right My wife was born in Alvy or Stringtown as it is sometimes called. I have heard alot about Big Moses. I have seen 8 mile as we have traveled on IC.Thanks for responding.

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