Any SWEPI Lease renew offers in Richmond Township?

Our lease will be up soon and SWEPI has sent us a new offer of $1000 per acre / 12.5% royalties for 10 years. Our old lease was $2000/15%/5 years. Trying to find out if this is the going offer and if anyone is having any luck negotiating with them.

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Permalink Reply by Joseph-Ohio on November 17, 2015 at 5:21am
Unless the 'Deductions' consume the majority (or all) of the royalty (which some folks here on GMS have posted / written as happening to them).
Permalink Reply by N Bohl on November 17, 2015 at 6:26am

Dennis - my understanding is that your offer is very similar to what has been presented to many other Tioga County landowners this year from Swepi / Long.

Until someone can explain to me why a deduction would not have clearly articulated limits in a legal agreement it is an unnecessary unknown. If a company wants to be trusted that has to be addressed.

Permalink Reply by Janice L. Hancharick on November 17, 2015 at 6:34am

I'm encouraging you to attend the Root Group meeting later this month.  Jackie and I are both NARO members, but she is the President for your section of PA.  Her group and my 4-County Group overlap in Tioga.  Both groups have negotiated solid leases, but I'm not having a meeting this month.  Take advantage of this opportunity to learn the latest.  There is much to be considered beyond $$ and %'s in any lease. Jackie is totally up on the "latest". Hearing what she has to say will help you as much if not more than what you've read.

Continue to do yourself a favor and GO to the meeting.

Permalink Reply by Tyler James on November 17, 2015 at 7:23am
Be a bit wary of Land Groups. Sometimes they work great, sometimes they go terribly wrong. Either way, it could never hurt to go to a meeting. I have experience with SWEPI and Land Groups and they are not too terribly willing to deal. When the offer presented to, what sounds like the majority, of people in Tioga County is so low, a Land Group may be able to double the offer. This would still be leasing your property for only $2000/acre. I know times are tough, but patience will pay off. $2000/acre is a fraction of what SWEPI has paid in Tioga County.
Permalink Reply by Janice L. Hancharick on November 17, 2015 at 8:52am

I understand where you're coming from, and am happy that you too see the value of Land Groups.  Good ones do NO arm-twisting to get members to sign a lease.  That should always be an individual's choice. A group lease has broad areas of agreement AND room for individual clauses.  No 2 properties are alike..

I'm guessing that SWEPII will cry about the low price of nat gas on the market but say little about how much cheaper it is for them to operate thanks to improved technology.  What would happen if no one chose to renew their lease?

Permalink Reply by James Young on November 17, 2015 at 8:56am

that's been the standard SWEPI offer lately, and looking at the maps of permits issued and well pads that "are held by Production" that have never produced anything, or even have a pipeline near them, just a pilot hole and a parking lot to legally tie them up indefinitely.... I don't know why SWEPI is even wasting their time of money offering anything to anybody for a new lease....   They have more gas now than they can sell, the price is terrible, and they have thousands of acres HBP not even drilled yet.   So they are sitting on enough leased land now to last all of my lifetime and probably everyone else's that's on this site...... One of my leases was up September 2014, Long called once with the low offer, and has never came back at all...  I'll go to Jackie's meeting next week, but will be expecting very little movement for the group....Bottom line is, it's all what you want out of it... the lease is nothing, compared to the royalties.  I would lease for free, if I got a decent royalty clause.....  How bad do you need money RIGHT now ? ....  How long do you want to wait for maybe anything better ?.... it's pretty much all up to you.... well head gas has been selling under $2.00 for the last three months... so SWEPI and the rest of them aren't swimming in $$$ like back when it was almost +12.00 in 2008 ... some of these big companies operate on 25-50 year plans ....  things change over time.  I figure my heirs will be looking more at all of this ... it'll be pretty much past me..... I think the glut is over,  especially for the Marcellus...

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