SEOLA leases in Washington Co. up for renewal soon.

Good luck to everyone in Washington County on the various lease renewals coming due this summer / fall. I personally can't believe it's been 5 years already. For me, it's been a really good 5 years and the lease money I received in 2012 is a part of that I'm sure. I hope others are still enjoying their bonuses as well! 

I wanted to share with other SEOLA members that I was recently in touch with Jennifer Garrison / SEOLA. I asked if she'd heard any news concerning the possibility that some of the deals she put together in Washington Co. were going to be extended. She responded that she was currently "discussing" that with the O&G company in my group / deal and that she may have "news" within a few weeks.

I have a gut feeling that they may not want to renew exactly the same lease but that they will want to renew with some modifications. Personally I'd be ok with modifications as long is it wasn't much less bonus (per year) and for shorter term, maybe 2 or 3 years. Looking up news on them and such, I feel they are still strongly in the game and won't be willing to give up all the acreage they worked so hard to tie up.   

I know it's also possible that they just won't want to renew at all, I would guess that Jennifer would look for other O&G companies at that point and we could be going through a similar process as back in 2012. Lots of waiting, meetings, nervousness, etc.  

When I hear news I'll be sharing what I can here. I do anticipate that good things are coming again, soon. I wish everyone lots of good luck!

ps: Hi Steve and Rose, hope you are both well. :-)

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Replies to This Discussion

Permalink Reply by Steve Wagner on June 26, 2017 at 2:05pm
Hi Dee. I have heard nothing recently. After the well was put on line, there was a O&G rep. going around trying to get neighboring property owners to sign a terrible lease addendum. Jennifer saw it and shot out an email to everyone. Since then... nothing. Half my property is in the unit and half is out of the unit just bordering it.
Permalink Reply by Dee A on June 27, 2017 at 3:50am

Good to hear from you Steve. I sent you a message. :-)

Permalink Reply by darren l on June 29, 2017 at 2:17pm

As a landowner that is partially tied in with the Merlin well in Lower Salem i can tell you that the royalty money is a joke.They (edgemark) charge you (instead) of paying for natural gas and it will cost you big time. At times the deductions for transportation and productions exceed the total royaltys for oil and gas combines so you wont get a check at all..If you renew keep this in mind.If natural gas could not negativitely affect the oil price i would be about $80,000 dollars wealthier per year

Permalink Reply by Dee A on June 30, 2017 at 3:53am

Hi Darren, was your lease done through SEOLA as part of the large groups that signed with them in 2012 / 2013?

Permalink Reply by darren l on June 30, 2017 at 11:59am

yes

Permalink Reply by Steve Wagner on June 29, 2017 at 4:34pm
The royalties are not at all what everyone said they would be. I know they have taken as much as 29% out for "third party gathering" plus other deductions and fees! Trust me, I'm not complaining. It is nice getting a little money each month. It's just not what everyone was saying 5-6 years ago but O&G prices are way down from then and they said our well was "underperforming", so I'm just luck to be part of a well unit.
Permalink Reply by Dee A on June 30, 2017 at 3:54am

But your well is actually through PDC right? Because your lease was traded or sold to them? I would also think they are throttling back with the market flooded and prices so low. I sure hope you see better returns when the market improves. 

Permalink Reply by darren l on June 30, 2017 at 11:58am

The checks are still coming from Edgemark...I dont think they sold the well as is is producing quite well..Even at low oil prices the oil payout is very good..roughly $200 to $300 per acre but after the natural gas production and transportation costs more like $50

Permalink Reply by Dee A on July 10, 2017 at 5:28am

Hi Darren, are they taking out deductions on gas from your royalties on the oil so you aren't getting hardly anything in royalties on the oil either?

And you are in the same well as Steve?

Permalink Reply by darren l on July 10, 2017 at 10:05am

that is correct...about deductiond.....im in the Merlin unit..Not sure where Steve is though.

Permalink Reply by Dee A on July 17, 2017 at 3:48am

Thanks Darren, discouraging to hear this. Honestly, I was not sure of some of the things in our lease, but I thought I must be mistaken. I guess I wasn't. This feels shady. 

Permalink Reply by Steve Wagner on July 18, 2017 at 1:24pm
I'm part of the Mason well in Coal Run. Here are some of the fees and taxes

Third party processing= tpp
Third party gathering= tpg
Third party marketing = tpm
Ohio ad valorem tax= oav
Ohio oil & gathering edu. Program= oep

I thought they also told us they would be taking a 10% Ohio state tax out but I don't see that.

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