Replies to This Discussion

Permalink Reply by grayhairedgrandpa on March 21, 2011 at 12:52pm

Simple approximation = $5/day/acre for 12 years (but remember everything depends on natural gas price and gas flow from well).

Permalink Reply by Robin Jackson on March 21, 2011 at 3:19pm

Hi, there is a calculator, and wells in use (showing production output) on the Pennsylvania Dept. of Enviromental Services..Click on Oil and Gas in the left hand column, then click on Marcellus Shale in the center area..There you will see many interesting items. Your local extension office can help you too.

 

Are you saying you rec'd 5,500 as  your bonus payment for lease of the land? Which is 220 an acre right> Or did  you get 5,500 pr. acre for 25 acres?  20% is good for Royalties.

Permalink Reply by Pam S on March 21, 2011 at 11:01pm

Thanks for your reply. I received $5500 per acre for a total of $137,000. Got more in bonus than I paid for my land. Thanks for the info, I'll check it out.

Permalink Reply by rob grant on March 21, 2011 at 3:58pm

Are you Bradford or Bradford county ?  Just curious.    I would contact my county extension office [4h]  they are administered by PSU and can help you with rough numbers to plug in.  and just foe conversation sake, depending on your location, the Utica shale play is the big brother to the Marcellus and might underlie your land.  Utica will be many years down the road but still and all you need to be informed.   use geology.com  and search Utica shale in the search box, look at the references on the page , last one is Wilconson .pdf , excellent maps. If you have a non strata specific lease (probably)  the rights for this gas is included in your lease. So depending on your original lease length , the next one will be worth more if it comes to that.  Good Luck   , post back to keep us all informed....rob

Permalink Reply by Pam S on March 21, 2011 at 11:02pm

 Bradford County. Thanks

Permalink Reply by Rob Thompson on July 14, 2011 at 3:46am

where are you in Bradford County?  and when did you get your lease?  We are in Franklin Twp and have been trying to lease our land for over a year.  We have 120 acres and the most Chesapeake will offer us is $500/acre!  And they now say they are planning to put three wells within 4000 feet of our property and are arranging it so that our property is not included in any units.  we will be like an island of non drilled within a circle of wells.

Permalink Reply by Pam S on July 14, 2011 at 6:46am

Burlington Township.  Shop your property around.  You don't need to lease through Chesapeake.  We leased through Fortuna (now Talisman) but I was the one that did all of the contacting.  I contacted Chesapeake first and they majorly low-balled me so I moved on to all of the other gas companies that were leasing in my area. Eventually, Chesapeake will probably take over your lease like they did with mine especially if they have leased around you but in the meantime, you will have a better lease then what Chesapeake will offer you.  Also, what is the royalty percentage?  That is more important than the bonus money.  If you do find someone to sign with, make sure they are not deducting their expenses and you get the royalty from the wellhead.  Chesapeake is notorious for setting up leases with deductions.   

 

Be aware however, that bonus money seems to have come down since I leased.  The gas companies seem to have shifted their priority from leasing to developing what they have already leased.  This makes sense because they will want to develop land already leased before the primary term on current leases expires.

 

For a list of gas companies that are leasing in your area, contact the recorder of deeds at the Towanda courthouse.  They are extremely helpful.  Good luck to you.

 

Permalink Reply by Sarah A. Conchewski on July 18, 2011 at 2:50am

We had a lease offer of $4000.00 with a 16% royalty.  We were ready to sign, but they recinded the offer saying they weren't leasing in our area right now. We are in Ridgebury twshp.  I am wondering if it has anything with proposed legislation next week.  Anyone have any ideas?

 

Permalink Reply by Barbara on July 18, 2011 at 3:04am

Is this chesapeake?  They did a similar withdrawal when my lease 'stuff' was going on....but three yrs ago...attributing it to the drop in gas prices.  My offer was nowhere as sweet as yours, but they withdrew then came back a week or so later with a much less nice offer...........if i signed within the week, as they were 'not going to be leasing anymore'........................right.  So, just beware of possible games.  There is a LOT of chesapeake drilling and fracking in Smithfield tsnshp, including fracking across the road from me and another well about a mile away, within the last month.  I don't have any idea what legislation will do to their operating mode, but do not be fooled by any attempt to 'scare' you into a lesser lease offer...........our mineral rights are too valuable and 'they' will be wanting them. My two cents' worth.........but others may know much more.  Good luck.  What a time, hey?

Permalink Reply by Sarah A. Conchewski on July 18, 2011 at 3:08am

It wasn't Chesapeake - EOG.  I wasn't really surprised as I have read about this happening to others.  Time will tell I guess.

Permalink Reply by Barbara on July 18, 2011 at 3:12am

you've got that right...............'time' is the only thing 'telling' anything, it seems..........certainly the companies don't share any info with us.  good luck.  lots of EOG wells near here, but were drilled at least six months ago, or so with the ones i am aware of, at least. 

Permalink Reply by Barbara on July 18, 2011 at 9:25am

EOG was who my friend in ridgebury just signed with.....for what you were offered.  Just checked with her to see who it was.  They'll be back.....

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