Replies to This Discussion

Permalink Reply by David Mohn on April 6, 2011 at 1:32pm

I live in the eastern part of Stark County and signed last Nov. at 1500 per acre for 10 years and 15% royalty.  We were offered 1000 for a 5 year lease with option to lease for another 5 years at 1000. 

Permalink Reply by Cherie on April 6, 2011 at 1:43pm

Thanks David. so you just negotiated up with them?   I am seeing from $1000 to $5000 per acre in PA and WV but no OH lease amounts on the spreadsheet on this site.  I live in Hartville.  since Chespk sold some acreage for $10k an acre fairly recently (although i don't know the details), I thought $800 was low and was thinking $1500-$2500. But,  we have just one acre. Do you have more? I would expect that would impact the lease offer amount...

Permalink Reply by Eric Budd on April 6, 2011 at 3:08pm

I bet you could get it a little higher, but with only one acre I don't know how much you could negotiate them up.  It is worth a shot to ask.  I've heard the 1500/acre and 1000/acre prices David mentioned is about as high as anyone has been paid in stark county

Permalink Reply by Cherie on April 7, 2011 at 12:19am

Thanks David.  You're right- won't hurt to ask. I'm just hoping to stay in the same ballpark on the per acre amt. I appreciate the input.

Permalink Reply by jeannie on April 7, 2011 at 1:01am

We live in Stark County and also got the $1,000 per acre for 5 yrs. 

Permalink Reply by David Mohn on April 7, 2011 at 1:23am

This offer seems to be what CHK is willing to pay for leases in Stark County.  On this site you will see where people have been offered 4000 and 5000 and 25% royalities and good for them.  Most of those are in the Marcellus Shale play that has been proven.  From what I hear in Stark County they are going down to the Utica.  This shale play is completely unproven but rumors are that it might contain quite a bit of oil.  Once they start drilling heavily in this area you might see offers go up if it proves to be VERY productive.  Or if it is a bust, you will see them move out and no more lease signing.  Or if they do hit it big in the Utica, they might decide they have enough land leased up and not lease anymore too.  CHK has been in Stark County quite a few months now and they have spend allot of money buying up deep leasing rights.  My guess is that they have a good idea the Utica will be productive but one has to weigh in on the fact is how greedy do you want to get?   Roll the dice and hold off and you might win big.  Roll the dice and hold out and you might loose big too!  CHK is not forcing anyone into a unit as far as I have heard so the decision is strictly up to the landowner. 

Permalink Reply by James Harber on April 15, 2011 at 3:34pm

So, do you work for chk, if not you maybe should consider asking them to promote their services. chk is just the main energy company in the area at the moment, there are more coming, many more and as always supply and demand always increase the price per acre and the royalty. Actually, the Utica does have oil in it and it is even better than the Marcellus, but of course chk or any other energy company is not going to let you know the facts. There is no need to roll the dice as you say, when you are already sitting on the 50 yard line and do not even know it. Yes, you can sell out for 1,000-1,500, if you do at least get 15% royalty, will you do that for your family/ We are talking about getting a royalty check for 40-50 years every month, that will change your lives and your children's lives, probably replace social security too. I know one thing, they always start out low and within 1-2 years the prices get up to at least the 2,000. per acre range with 15%-17% royalty. CHK is going to lease every square foot of ground they can get their hands on, and for that matter so will their competition and so will their subsidiaries like Kenyon Energy, DPS Penn, and so on. But, if you can hold out a few more months, say until this time in 2012, you might be surprised at the change in prices or not. Best of luck to you, whatever you choose to do. Just get informed first, get together and find out what all the possibilities are before signing on the dotted line.

Permalink Reply by Bill anders on April 28, 2011 at 7:54am

James...Let me know when all these other companies come into the area.  We have been hearing of this since June of 2010 and are still waiting......

Permalink Reply by David Mohn on April 28, 2011 at 9:19am

I heard too that all these companies we suppose to over run Stark County to lease up the land.  I contacted a few of them on my own and no one but CHK was even interested.  I also agree with your statement of the time value of money.  I have my money already, and even updated my equipment already with some of it.  Another thing to consider is that if you have signed already then you might be one of the first to have a well drilled in your unit.  The quicker a unit gets a well, then the quicker you will get your royalities.  And that is where the real money is.  But once again must my thought and in answer to the question do I work for CHK, no I work for an insurance company that deals with what may and may not happen in the world. And I did sign for 15% royality. 

Permalink Reply by James Harber on April 28, 2011 at 10:34am

Bill,

Well, it takes about 2 years to get a county leased out, for at least a large part of the county anyway. Actually, if you get a offer of $2,000. and 15% royalty, then that is a fair deal. It is hard to tell you to "hold out" for $2,500.-$3,000. and 18%, because you are the only one who knows just how bad you need the cash. The key is to get the "best addendum's" in your lease that you  can, because at the end of the day, you need to be at peace with yourself as to what you signed for, regardless if next week or next month the price bumps uo another $200.-$500. a acre. Time is money and money is time, just get the right information, do not pay out any royalty to anyone, whether it be and atty or anyone else because that is your and your families future. If you have to compensate somebody, give then a few bucks from you lease bonus money and be done with it. You don't want to give away your royality, and know they will get a check for the next 40-50 years, do you? I hope this helps, if not just 86 it into the can.

Permalink Reply by melissa kiko on June 3, 2011 at 11:56am

you have to be aggressive. First I recommend starting a group or joining one in stark county. Then you have to contact energy companies. Our group in carroll county contacted several energy companies. We had 4000 acres at that time and we got 3 companies to compete with each other. The end result was 3500 per acre and 20% royalties on the gross. We signed June 1st. Good luck. By the way chesepeake landmen are dishonest so watch out. They told our neighbors that everyone around them signed leases and if they did not sign with them they would be left out. Don't listen to their scare tactics. I hope you get a good lease.

Permalink Reply by Anne-Marie Anderson on May 25, 2011 at 2:04pm

I can vouch that Dave doesn't work for CHK.  We work for the same company. I appreciate both of your comments.  I find it very helpful in dealing with these big oil companies.

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