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We inherited 22 acres in Gilmore Township, Greene County Pennsylvania. We were offered $5,000 a acre by a gas company. We are not sure what to do. The family owns a total of 88 acres are share is 25 percent. A lawyer told us we could get 25 percent royalaties on the 88 acres. We don't know what to do any suggestions?

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Permalink Reply by Marci Feustel on May 20, 2018 at 3:31am
Thank you for all information, it's very helpful. We will definitely do are homework. Thanks again.
Permalink Reply by Bullfrex on May 20, 2018 at 5:16am

Lynn,

The site is here; https://www.paoilandgasreporting.state.pa.us/publicreports

Click Agree; look for production reports, then use the search engine for month, county, producer, etc.

If you know the well API (I think?) number, you can search by that method also.

Permalink Reply by Lynn mudder on May 20, 2018 at 5:23am

Thanks so much, I’ll give that a try. 

Permalink Reply by Inchworm antenna on May 22, 2018 at 4:52pm
That's usually the case ....other people always own the neighboring land. Whether it's one person or several neighbors. All sarcasm aside, just because neighbors own the land around me doesn't mean I will have a hard time selling, right? Don't fall for the dupe. Keep your mineral rights. They are an inheritance of natural wealth you can hand down. Didn't someone once say a fool and his money are easily separated? Same goes for a fool and his minerals. I especially would not sell to some out of state carpet bagger. Out of state LLC's pay income taxes in the state they are chartered, and probably spend their money elsewhere, thus mitigating the benefit to your community. I strongly advocate to keep land and mineral rights in local control. If you really wanted to sell you could probably advertise and some local farmer already getting royalties could buy you out and keep it under local control and local benefit. You inherited the property from a love one whom probably would not want their legacy to be disposed of to a carpet bagger. Good luck with your decision.
Permalink Reply by Marci Feustel on May 23, 2018 at 7:42am
Thank you everyone we decided to not sell. It was a easy decision to make after finding this site.
Permalink Reply by Bullfrex on May 23, 2018 at 7:49am

Now the REAL work begins....get smart, enlist the help of an attorney, and stop back and let us know how it is going.

This site is a gold mine for information.

Congratulations!

Permalink Reply by Lynn mudder on May 23, 2018 at 5:34pm

Good for you, Marci.  Unless you are desperate for money, which some people truly are, I think you will come out better long term by leasing.  We have actually leased our property 3 different times!  And been paid each time. That is truly NOT the norm. But one of the reasons for multiple leases was the language we had in our lease. So please, take your time writing your lease, one wrong word can change the entire thing. Feel free to send me a personal message if you would like. Good luck!

Permalink Reply by Marci Feustel on May 24, 2018 at 11:59am
Need your help again. Can anyone recommend a good O&G attorney? Thank you.
Permalink Reply by jett on May 24, 2018 at 3:24pm

Jeff Rokisky, licensed in OH, WV and PA, has been doing oil & gas leases for many years. We got our leasing done with him and got a really great lease. 

He also take the time to explain everything and really works to get what you want in the Bonus, royalties and protections you'll need in your lease.

His number is 1-304-748-3200

Hope all works out well for you!

Jett

Permalink Reply by Lynn mudder on May 24, 2018 at 4:15pm

I wish I could.  We have never found anyone we were totally happy with.  We basically did our own research and wrote up a list of addendum that we felt were important, negotiated with the gas company, had a couple of attorneys look them over, then they were attached to our lease. So far, this approach has served us well. 

Permalink Reply by Jim Litwinowicz on May 24, 2018 at 3:31pm
You have gotten some goof info so far. Glad to hear you aren't selling. And this character sounded sleazy in they way they tried to trick you into selling. Find others to deal with that are more moral and honest.

If you live in the area, set a up a meeting with the other landowners in the 88 acres, or set up a teleconference to see what they are planning and share in knowledge. Try to find out from neighbors who is leased and with what companies. See if there are wells in the area, within five miles, and look up their drillers and the production numbers for any wells. This will give you a good idea of the quality of the shale and what companies may be interested.

Ask neighbors who they leased with and when their leases expire if no wells have been drilled. You may be able to work together and gain some leverage. If everyone around is leased find out who with. If the lessor is planning on drilling within the next two years, they will probably be willing to lease your acreage and fill in any gaps in their drilling unit. They may be willing to pay a premium to complete a unit....but maybe not.

If there are pipelines nearby, it helps them get the gas to market so that may help you.

In the leases be vary careful about other ancillary issues like access roads, water impoundments, pipelines, storage of materials, pump stations, separators, meter stations, and more. These can be permanent installations on your property so either eliminate them or insist on tmem paying more for those issues. A lease covers much more than just drilling a well.

This is a complicated business full of sharks. Take your time, study all you can, trust no one. Like others have said, this could be life changing with serious money involved. It can also be frustrating and heart breaking. Above else, don't spend any of the money until the checks clear the banks!

Good luck!
Permalink Reply by Jim Litwinowicz on May 24, 2018 at 3:31pm
You have gotten some goof info so far. Glad to hear you aren't selling. And this character sounded sleazy in they way they tried to trick you into selling. Find others to deal with that are more moral and honest.

If you live in the area, set a up a meeting with the other landowners in the 88 acres, or set up a teleconference to see what they are planning and share in knowledge. Try to find out from neighbors who is leased and with what companies. See if there are wells in the area, within five miles, and look up their drillers and the production numbers for any wells. This will give you a good idea of the quality of the shale and what companies may be interested.

Ask neighbors who they leased with and when their leases expire if no wells have been drilled. You may be able to work together and gain some leverage. If everyone around is leased find out who with. If the lessor is planning on drilling within the next two years, they will probably be willing to lease your acreage and fill in any gaps in their drilling unit. They may be willing to pay a premium to complete a unit....but maybe not.

If there are pipelines nearby, it helps them get the gas to market so that may help you.

In the leases be vary careful about other ancillary issues like access roads, water impoundments, pipelines, storage of materials, pump stations, separators, meter stations, and more. These can be permanent installations on your property so either eliminate them or insist on tmem paying more for those issues. A lease covers much more than just drilling a well.

This is a complicated business full of sharks. Take your time, study all you can, trust no one. Like others have said, this could be life changing with serious money involved. It can also be frustrating and heart breaking. Above else, don't spend any of the money until the checks clear the banks!

Good luck!

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