The landowners that had to wait are in a better position then those who signed early.

I know many landowners are discouraged at the slow process of being leased. The same goes with pipelines, but if you think about it, you are positioned better then the rest of us. You've had all this extra time to gain knowledge about the whole process which will benefit you. Pipeline prices have increased. In a way, I wish it was all just happening to me now. I know so much more about this whole process then a few years back.

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Permalink Reply by Trapper on October 3, 2014 at 3:22pm
RB, like most folks in my area at the time,I signed for 3,000/acre and 15% no deductions. This was in 2011 with Shell.
Permalink Reply by RB on October 3, 2014 at 4:25pm

Trapper,  Thanks for sharing.  Just wondered.  That is what we got too but 17% with deductions. No unit yet. It is so discouraging to read of the low ball selling to corporate created middle men all the while jacking up the costs to sell (deductions) and recouping those costs with more finagling.  You won't be a victim of that.That is good.  I've got to wonder where the consciences are of these corporate stewards, if in fact those practices are true. After all, we too, are stakeholders.

Permalink Reply by Joseph-Ohio on October 3, 2014 at 11:48pm

Trapper, yes thank you very much for sharing.

RB, thank you for your contributions and yes I'm on your bus with it all as well. And also RB, as I agree 100% with your perspective I'll add that I don't understand how landowners can allow themselves to become victims of it all. Only way it can happen the way I see is by the old hoodwink and trickery methods employed by the lessees / buyers.

Landowners be aware.

It's a landowner hostile market.

Protect yourselves and your assets.

Maximize your return.

Good luck to all of us - we need it.

All as always only in my most humble opinions (IMMHO).

Permalink Reply by elliemae82 on October 5, 2014 at 2:00am

At this point in the game I don't think any land owner should settle for less than $5000/acre with a 20% royalty.

Permalink Reply by Frank Walker on October 5, 2014 at 2:13am

Zack

Barring changes on the demand side I do not buy into your thesis.  There was a "sweet spot" for leasing back circa 2010, give or take, before the NG glut hit with full force.  Those were leasing's halcyon days for landowners.  Bonuses were high and royalty fractions were very high.  The gas companies still had stars in their eyes, with "$12 gas" emblazoned on each and every star.

Failing some real action on the demand side of things, I do not envision those magical "gasicane" days returning any time soon.  Reality has intruded now.  And reality is a difficult thing to eradicate.

Permalink Reply by Joseph-Ohio on October 5, 2014 at 2:37am
To me what we're seeing now is asset management and market conditioning.
IMHO that's realistic business SOP.
Permalink Reply by Joseph-Ohio on October 5, 2014 at 2:22pm

In spite of this, I'm still hoping for the best with cautious / guarded optimism.

Good luck to all Utica 'play' landowners and developers; and especially to those in / working the northern tier here in Ohio.

I believe that it's possible that we can all be winners - landowners and developers alike.

Permalink Reply by Jim Litwinowicz on October 5, 2014 at 3:54am

Frank; you are absolutely right. People that listened to the Great Prognosticators 0n this site predicting $7000-10,000/acre with 20% royalties all got burnt bad.  I feel badly for anyone that turned down a lease offer in the $3500-5000 range because they will not get another chance.  Gas prices are too low, oil is dropping, more shale plays are proving out across the nation. 

Permalink Reply by Frank Walker on October 5, 2014 at 4:03am

Jim

Understood.  But as I pointed out, hope remains on the demand side.  So far it's mostly hope.  If we elect in 2016 another POTUS akin to Obama, it likely will remain just hope.  We do not benefit when our leaders have windmill propellers twirling on their hats, solar cells for eyes, and **** for brains.

Permalink Reply by elliemae82 on October 5, 2014 at 4:08am

True, many more shale plays but only one utica. If they want it landowners should make them pay. Otherwise they could go pound salt!

Permalink Reply by elliemae82 on October 5, 2014 at 5:19am

I agree Jesse, I think many here are missing the point. There are many shale plays throughout the world. Whichever the big oil companies choose to develop must be of the most value to them at that time. For that reason if they choose to develop any specific area and  being a land owner I would not accept lower than $5000/acre 20% royalty.

That's just my opinion, I think all landowners need to be educated when signing a lease. We own the land and we should get a fair deal. :)

Permalink Reply by Jim Litwinowicz on October 5, 2014 at 6:00am

elleimae; except that they won't pound salt. they will drill holes.....elsewhere.  You are in competition with over 35 shale plays in at least 29 states.  And that doesn't include offshore, Canada, Mexico, S. America, Europe, China, Africa.

You have the right to demand all you want.  But they have the right to refuse. And with so many options in a world oil glut and a US gas glut, you need to play the cards dealt you very wisely.

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