Replies to This Discussion

Permalink Reply by Daniel K. Mathers on December 1, 2010 at 12:33pm

Anadarko is the primary player thorugh these townships (and they know it). Standard offering through the past year has been $3,000/16% gross (at times a bit higher on the bonus if they needed you to complete their unit plan). More recently, they have been offering $1,000 per acre bonus to extend expiring leases for one year. These are the old 12 1/2 % net East leases Anadarko acquired... I can't figure out why someone would want to extend a 12 1/2% net lease, but some people have accepted. I think they can do better, but it's a gamble. Perhaps when they get into their 2011 budget things will start again... but as they pretty well control the area, I do not anticipate runaway competition-driven offers.

Permalink Reply by Daniel K. Mathers on December 1, 2010 at 12:57pm

My answer referred primarily to Gamble, Cascade, Cogan House and Plunketts Creek Townships. I have seen fewer leases in the other areas. The high I saw was $4,000/acre bonus (no surface entry)/16% gross, though I heard rumors of a couple that may have been higher.

Permalink Reply by Leslie Jay Comfort on December 30, 2010 at 2:01pm

Do you know of a land man still working in the Picture Rocks, Wolfe Township, area of Lycoming Co? I am interested in leasing but things have been real quiet in Wolf these days.

Permalink Reply by NY Gas Rights on May 24, 2011 at 6:01pm

Until mid 2010 the offer from Anadarko was $2,500 and 15%. Williams floated a rumor of $4,000 but never signed anyone to a bonafide lease. Williams was attempting to get some acreage to negotiate for the pipeline work. An extension works if a well bore is drilled and the flowback could determine production. A well doesn't have to be fracked to be considered producing. The $1,000 extension offer is the best choice or the LO could be given $5 per month shut in fee for one year ($60)

Permalink Reply by Rebe Ken on December 1, 2010 at 12:42pm

Don't have a 2010 lease. We signed in Anthony Township thru Range Resources in 2008. Is Anthony in NE Lycoming?

Permalink Reply by Curt Sommers on February 23, 2011 at 2:26am

4 years ago this April, our camp, which is located in Lewis Twp., signed $200 an acre. That was a good price 4 years ago...Range got 1 more year on our lease. They (Range) got everything marked out such as right a ways, lake, drilling pad and pipeline. We got close to 3000 acres, so Range is making out pretty nice on our lease. Wished we knew this marcellus shale play was going to be this big 4 years ago!

Permalink Reply by Rebe Ken on February 23, 2011 at 4:10am

Yes, considering the pre-GoMarcellusShale time, that was a good price.  We are also signed with RRC, but alas, not nearly the acreage that you have!  Nonetheless, I'm in the market for an attorney for the next negotiations!  Seems like none of those types in Hagerstown care to commit themselves to such cases. A number of local attorneys have suggested that I obtain licensed, Pennsylvania-based representation. You must have used an attorney, with so many acres involved! ....I mean, one who isn't already tied into the gas industry in some way....

Permalink Reply by Curt Sommers on February 23, 2011 at 4:48am

Yes we got an attorney for the camp. We talked to S&T(Bank) people last Friday about ideas of ways to manage your money... S&T also had 2 people at the meeting from Oklahoma that knows everything about this gas stuff. They were from Heritage (something), I can get the whole name for you. S&T Bank are using this company for representation for the gas field, since this is nothing new to them. They looked over our lease and said it was not a bad lease but they would of changed a couple of things...should of had a "depth clause", we had no "pew(or Pugh) clause" (very important), and making sure your Gross proceeds are correct. We are going to try and change this. These guys from OK said PA is not organized at all from all this gas stuff. They also said Range is a good company to work with.

Permalink Reply by Rebe Ken on February 23, 2011 at 11:30am

Yea, the bank people. And please, these guys from OK, Heritage who?  See, PA was not expecting this. Range Resources is from Texas - they should know. That's why I want an attorney, now.   

Permalink Reply by Curt Sommers on February 23, 2011 at 1:11pm

www.heritagetrust.com/oilandgas.html (If the link is not working then just type

www.heritagetrust.com

 

This company is working with S&T Bank.

Permalink Reply by NY Gas Rights on May 24, 2011 at 5:48pm

No company will sign a depth clause regardless of the rumors you have heard. Most of the lawyers in Wiliamsport area are not doing anything for their clients. More addendums mean less interest in your property and more interest in Rule of Capture.  Oklahoma folk have NO clue about Pennsylvania and the Marcellus play. That's why they are having so much trouble building roads and getting pipelines done.