Replies to This Discussion

Permalink Reply by the two of us on July 18, 2018 at 2:59am

Hi David,
We also received a notice from BOP. We have 35 acres in concord Twp. We were wondering if you were to find out any info regarding Edgemarc or BOP? The offer we received is 1750.00 per acre. and 14% with deduction.
Thank you
Tom

Permalink Reply by David Good on July 20, 2018 at 1:32am

I did talk to the BOP landman. I received the same offer. He said Edgemarc is targeting specific properties and not wide spread buying as was done in the past. He said Edgemarc has 70 wells drilled in the area and the bonus and royalties offer is non-negotiable but they are flexable with addendums.

Permalink Reply by Joan Sutter Anderson on October 2, 2018 at 9:24am

We received an offer from BOP land services for Edgemarc.

Offer is $2000 per acre and 14% royalties with a deduction for transportation costs.

NO numbers available on what that might cost.  Seems like I could end up owing the gas company!

Located in Butler County  PA, Washington Township; and am aware that neighbors have also been approached in that area, but can't get a good read on what folks are doing. 

In 2011-12 we had BCLG negotiating for us.  Now I'm  feeling like a fish out of water.  Should my attorney do the negotiating for me? I only own 32 acres, so it seems like I don't have much leverage. 

Anyone have any thoughts or suggestions? Thanks!

Permalink Reply by Joe Fabeetz on October 15, 2018 at 9:32am

Ask to cap the transportation costs and any other post-production expenses such as compression, marketing, trestment. Make sure that cap stays in place, survives an assignment or conveyance should your well be unitized of assigned.  Reasonable deductions are typically ok, but they should be reasonable for your area.  Check with others as to what they have done and get your attorney to put in the appropriate wording. 

Permalink Reply by Jon on July 18, 2018 at 6:37am

Haven't heard anything in Cherry

Permalink Reply by the two of us on July 18, 2018 at 6:53am

Since REXX went bankrupt they are selling all Butler County assets at that point another gas co. Should be involved. Maybe see activity then

Permalink Reply by Jon on July 18, 2018 at 7:03am

We'll see what happens with Rex. I've been watching their website for updates.

Permalink Reply by Geo5 on July 21, 2018 at 5:58am

Read Line "n" in the Edgemarc Lease, it says BOP employee's are allowed to lie to you all they want, as long as you believe it. Edgemarc don't have to honor anything they say if its not in the lease.

Permalink Reply by Bob Glaspey on July 21, 2018 at 8:43am

We met with them. Seem very inflexible. Only act in town. Amount one would receive as a royalty is really not known as the 14 percent is a "net" amount subject to post production costs. These costs are also non negotiable.

Permalink Reply by Joe Fabeetz on July 22, 2018 at 8:26am

There is very little in a lease that is "non-negotiable".  That just means that they don't want to negotiate.  Post production costs are indeed negotiable.  You may not be able to eliminate them but you can get them capped.  It's often called "minimum royalty" and it puts a floor on the royalty you receive.  If your attorney doesn't understand both that and about half a dozen other ways to negotiate a lease then he/she is an amateur playing a professional's game and you need a different attorney.  

Permalink Reply by Bob Glaspey on July 22, 2018 at 9:44am

Well said Joe. I guess I should have stated they at present are not willing to negotiate. We are working to put a group together to act with a stronger voice.

Permalink Reply by james on September 17, 2018 at 4:01pm

How are you coming with your group? How many townships are involved with it? I have property in Butler County I would be interested in leasing for the right lease. Thanks.

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