Replies to This Discussion

Permalink Reply by Robert Bond on August 14, 2011 at 2:37pm

See posting on Guernsey County group.

Permalink Reply by Shower Bath on August 14, 2011 at 3:04pm

Everyone should be reading the Harrison and Gurnsey, and Belmont County groups on a regular basis. An educated landowner will not sign a low-ball lease and later regret it.

 

Randy

Permalink Reply by Private KeepOut on August 15, 2011 at 9:43am

I agree...it's so important to learn as much as you can about this business and that's coming from a rookie! lol If you don't ask questions, read as much as you can and compare a good landowner friendly lease with a producer friendly lease........... and jump on the very first offer....one will be taken to the cleaners.

 

 

 

Permalink Reply by scott peterson on August 14, 2011 at 9:01pm

hmmm i didnt realize that...good question!

Permalink Reply by HawkDriver on August 15, 2011 at 5:58am

I watched a webinar from Penn State Uni this weekend.  During the presentation they showed a slide from an investor presentation of a major O&G company.  This slide showed that the royalty payments being paid to folks in the Marcellus Shale play averaged 15%.  They were paying 25% in most other plays.  Makes you wonder doesn't it.

Permalink Reply by porkchop on August 15, 2011 at 10:06am

The question is are these royalty rates gross or net??

Permalink Reply by Jon Henderson on August 16, 2011 at 8:46pm

Don't have the answer to this one, but here is an internet site I found purely by accident...

..... looks like its from 2010.

 

Dear Neighbor:

Chesapeake Exploration, L.L.C. (“Chesapeake”) is pleased to announce that we have recently reached an agreement with the Hightower/WAMRA Consolidated Coalition (“HWCC”) Committee regarding the mineral development of your neighborhood. This important agreement comes as a result of months of negotiations and presents a very attractive leasing opportunity for the members of the HWCC Community. Please take a moment to review this letter, as the endorsed agreement is customized to the individual landowners and involves multiple legal documents.

Every landowner will receive four documents, which are endorsed by the Committee and approved by the Neighborhoods legal counsel: (1) the Oil and Gas Lease form; (2) a Memorandum of Oil and Gas Lease; (3) a W9 Tax form, and (4) an Authorization Form to Request Subordination/Non-Disturbance Agreement.

Subject to final verification of title and contracts related to this transaction, the business terms of the endorsed agreement are as follows:

 

• Signing bonus consideration of $5,250.00 per net mineral acre
• 3 year Primary Term
• 25% Royalty interest
• 2 year option to extend built into lease, which will include $2,500.00 per net acre if Chesapeake exercises the option to extend
• NO SURFACE operations on your leased premises

 

Your lease signing meetings will be held at 4:00 p.m. – 8:00 p.m. on Tuesday, June 8, 2010 and at 9:00 a.m. – 5:00 p.m. on Saturday, June 12, 2010 at the Fort Worth Christian School cafeteria, located at 6200 Holiday Lane, North Richland Hills, Texas 76180. Please attend the meeting that is most convenient for you and your family.

Chesapeake has retained Petrocasa Energy (“Petrocasa”) as our independent contractor authorized to lease on our behalf for all HWCC properties located north of Chapman Road. There will be Petrocasa representatives present to assist in answering any questions you might have, and to facilitate the execution of the aforementioned lease documents. Petrocasa will prepare your personalized lease documents in advance of the meeting, and those documents will be on-hand at the meeting times shown on the attachment.

Please bring a photo ID, and if married, please have your spouse attend the meeting as well. If possible, please have your Social Security and mortgage information available in order to complete the lease package. Be assured we will do everything we can to make the signing of your lease hassle-free and convenient.

If you are unable to make it to your scheduled meeting or have any further questions or concerns please feel free to contact Petrocasa at (817) 820-0288 begin_of_the_skype_highlighting              (817) 820-0288      end_of_the_skype_highlighting begin_of_the_skype_highlighting              (817) 820-0288      end_of_the_skype_highlighting or via email at HWCC@Petrocasa.com. The HWCC website, located at http://hwcc.angelfire.com, will also contain information regarding our lease signing meetings and will be updated with any changes to the schedule.

For additional information about Chesapeake Energy Corporation, the Barnett Shale and mineral leasing, please visit: AskChesapeake.com

Sincerely,
Chesapeake Exploration, L.L.C.

Oscar Duarte

Permalink Reply by JMS on August 16, 2011 at 9:59pm

You're darn tootin'!  Whoa! That's a jaw-dropping lease amount!

So how many years into the drilling process are they in North Richland Hills Texas?  Seems to me that if there is already a history of success in that area, the new fracking technology now makes this area in Texas even more attractive.

I wonder if the uncertainty of the shale production in areas like northern Butler county doesn't have a major impact on the opening offers?  I mean, no one knows if that area will produce to the degree that these other areas are already producing in Texas, Ohio, and Bradford County PA.

How can you expect to receive that kind of an offer when there is no guarantee that the gas companies will hit a "gusher?"

Permalink Reply by scott peterson on August 16, 2011 at 10:29pm

Dear Oscar, I will take it!

Permalink Reply by JMS on August 17, 2011 at 12:21am

No really...this is a serious question...

Some landowners may be expecting to receive this kind of money...how does one determine the value of their land when there has been no previous drilling and offers are being made, possibly low balling the real value?

If a landowner group has an unrealistic expectation in their area, how do you know?

Permalink Reply by scott peterson on August 17, 2011 at 6:35am

Its a legit concern. I think prices are on the rise and you have to gauge what level you think is fair and acceptable and go with your gut when you have a good offer with good landowner friendly terms in front of you. Waiting for prices to peak will be like stock trading,,,,, nearly impossible to pick the highest point to sell or lowest point to buy. Gain as much info as you can and pull the trigger when its a good fair offer is my opinion.....If a landowner group has unreasonable expectations and you are in tune with what offers are out there, you will know it, voice your opinion and if need be, look elsewhere. The thing you will never know is when you accept the deal, could you have held out for more....of course that is possible but so it the possibility that prices could go lower too.

Permalink Reply by Nelson Roe on August 17, 2011 at 10:49am

Very well said Scott!

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