Replies to This Discussion

Permalink Reply by Kevin Howe on November 28, 2014 at 7:22am

SWEPI has increased their offer to $1500/12.5/10yr in NW Tioga County.

Permalink Reply by Ann Ticopa on November 28, 2014 at 10:24am

What are the renewal terms for the 10-yr leases?

Thank you for the update. 

Permalink Reply by Kevin Howe on November 28, 2014 at 10:50am

A Boilerplate lease which should allow them to "Hold by Production" without any production.

Permalink Reply by Ann Ticopa on November 28, 2014 at 4:33pm

No, what I was wondering about was terms to extend/renew the lease (not hbp).

Permalink Reply by Deb Reynolds on December 3, 2014 at 3:49am

Neighbors just got an offer in Charleston Twp. for $1000/acre for 10 years. Didn't mention %age. I told them that's low, hold on. There seemed to be some confusion--whoever called said their lease was "up" and the landowner said, no, we've got more than 2 years to go. The "official" who claimed to be from Shell said, no, your lease ran out. Weird. 

Permalink Reply by Thomas Lilli on December 3, 2014 at 5:05am

For those dealing with current activity. I got involved with a land man in 06. I sent him to a law firm that was recommended to me who said they were experienced in these matters. The lease was a standard 5 year with an extension clause paying $90/acre/12.5%. It seems as though most others who got leases like this struck the extension clause successfully. That recommendation was never suggested by my council. In 11 many of my neighbors renegotiated for well over $4.5K/acre and 20% not including all the addendums. That small error cost me almost a half million bucks not to mention all the addendums that time and experience has yielded.

I would think long and hard before I signed anything with a term like that. I would also recommend retaining legal council by an experienced O&G attorney who deals with these people daily (as I have done). FWIW.

Permalink Reply by NightHawk®™ on December 3, 2014 at 2:03pm

I would hope with Utica now coming into play, offers should be no less than 1.5 times what was offered in your original lease offers.

Permalink Reply by Thomas Lilli on December 3, 2014 at 3:36pm

1.5x$90 ($135/acre) is About 10% of what they apparently have been offering today, and those offers being considered lowball offers.

I would do nothing without experienced legal council.

I'm in Liberty just west of 15 on mt top road.

Permalink Reply by Lynn Wigglesworth on December 8, 2014 at 5:42am

Good suggestion, Josie. I see nothing happening in Delmar Township (and we are only 10 miles or so from the Utica well in Keeneyville)

Permalink Reply by George Donovan on December 8, 2014 at 6:09am

PA Gas Drilling Permit Issued in Delmar Twp TownshipGas permit issued on 2014-12-03 00:00:00 to SWEPI LP for site BAKER 128 23H in Delmar Twp township, Tioga county
Tags: PADEP, frack, permit, drilling, Gas

PA Gas Drilling Permit Issued in Delmar Twp Township

Gas permit issued on 2014-12-03 00:00:00 to SWEPI LP for site BAKER 128 21H in Delmar Twp township, Tioga county

Permalink Reply by Lynn Wigglesworth on December 8, 2014 at 6:20am

Are the permits for new wells? I thought they had already completed all the wells at the Baker site?

I have not been keeping up the permits and production reports. Does anyone know how many wells are actually producing, by township, in Tioga County? Sometime I wonder if everyone but me is getting a royalty check. Or are a lot of people held by (non)production or otherwise in limbo (I'm leased but not in a unit)?

Permalink Reply by Lynn Wigglesworth on December 12, 2014 at 3:47am

Thanks! That's good news. It's nice to see the activity getting closer. I'm only a couple of miles from the Baker site, so I hope the Utica is fruitful there. I never thought I'd say it, but I hope they lock me into the unit soon; I've got a higher royalty rate than they are offering now, and I'd like to keep it. I'm afraid they will let my lease expire then re-lease at a lower royalty.

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