US Mineral Rights - Signing folks in Mon, Marion, Wetzel and Preston Co's

Just curious if anyone here has info on US Mineral Rights, beyond their pitch, which I heard this past Thursday at the Blacksville VFW. The terms that they mentioned seemed intriguing but I'm cautious as these numbers seem too good to be true. They say that for Marcellus only, a lease should command 5k per acre, 18% royalty and no deductions. This is for a 3 year lease and there would be a option for the 4th and 5th year but it would cost the operator an additional 2k per year. They commented that Utica and Burkett would be likely leases a few years later as that is the progression of these O&G operators and the numbers would be similar. I'm looking for anyone who can comment on their experience with the group. Basically, you sign on to be a member of their group for 2 years and they market your minerals to O&G producers, building units of 1280 acres and taking a 5% cut of your acreage bonus as their payment. Anyone in this forum deal with them in the past, has it worked out and what has been your experience?

Appreciate any info that you have.
Thank you.

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Replies to This Discussion

Permalink Reply by Adam Martin on November 18, 2014 at 3:27am
Apologies, this is in WV.
Permalink Reply by J. Kinney LandRights on November 18, 2014 at 3:36am

Sounds like a land group pitch.  People can "say" a lease should command whatever they want.  However the current leasing market will control what companies are willing to give in regards to signing bonus, royalties, terms, timelines, surface protections, pugh clauses, and many other terms and conditions that need to be evaluated in a lease.  In my opinion Land Group days are over because these companies are being very selective and leasing as they go; no longer grabbing thousands of acres and committing tens of millions of dollars on projects that they may or may not get to within the timeline of the lease.  My opinion is based on what I see and do in PA and OH more specifically.  However a group of neighbors that can accumulate around 1000 acres or so is probably the best way to have negotiation power and be very attractive to the nearby O&G companies interested in leasing that block. 

Permalink Reply by Adam Martin on November 18, 2014 at 3:45am
Thanks for the feedback. This group has put large production units together in Green Co PA and their ability to do the same in WV is what provides them the negotiation power when dealing with these O&G companies. I also think they are dealing with a few of the new operators in the area, including Rice and Vantage so having someone do the work for them, is appealing to these companies. Thanks again.
Permalink Reply by Adam Martin on November 18, 2014 at 3:50am
Thanks for the reply Jesse. There has definitely been drilling in this area with EQT and Northeast Energy so I think it's just a matter of time before there are more operators in the area. My family has some pretty large acreage (not all in one location but broken up) and I'm just looking to put us in the best position to maximize all of the acreage. Thanks again for your comments and I'll try to look up CX to see what some of those comments were.
1xc6tw2xj1fwlPermalink Reply by 1xc6tw2xj1fwl on November 18, 2014 at 5:14am

Hahaha!  

Only stupid, greedy, uniformed idiots join these groups (which there is certainly no shortage of).  Remember they get paid either way.

Permalink Reply by Adam Martin on November 18, 2014 at 5:23am
Interesting that you'd go out of your way to offer comments like this. Either on of these groups has burned you in the past or you are a landman and they are taking money from your pocket. I'm not looking for a reply, one useless comment was plenty. Thanks
Permalink Reply by jason irvine on November 18, 2014 at 8:44am
Gebralter. Could you kindly tells us alittle about yourself. Do you own land. If so we're. Are you leased. If so with who and how much? Why are you so negative. Are you on here to get a rise. If so could the author please remove this presin as they offer nothing but garbage.
Permalink Reply by Adam Martin on November 18, 2014 at 8:54am
Hi Jason - I looked at Mr Gebralter's profile and he has "gas professional" listed so I would say he's more sore about the subject because this company is causing competition. Funny that anyone in the O&G industry would call a mineral owner "greedy"!
Permalink Reply by Nancy LeNau on November 18, 2014 at 2:50pm

gebralter, What a waste of my time to read your comment !   I am here to learn.....  

Permalink Reply by jason irvine on November 18, 2014 at 8:46am
Gebralter. I have read your posts and I don't believe you understand this site. There has to be other sites that are geared for you. This is a site to assist and educated.
Permalink Reply by jason irvine on November 18, 2014 at 8:47am
You will be gone soon enough. Goodbye. Just in case you get booted before I got a chance to say it
Permalink Reply by Brad on November 18, 2014 at 9:00am
My opinion is it's Ron and he's really bored and doing a little better with his disguise this time around what do you think Kikko.just my opinion.

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