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Discussion Starter #1
we have a camp near morris run in eastern tioga county with 5 acres. we were approached by fortuna energy last september about signing a gas lease. it was for 1000 dollars per acre. the landman said"we can offer tis bonus if you sign in a timely manner". now ,the members of the camp wanted to get the camp in a LLc to protect us. the lawyer and other factors delayed us from signing in a "timely manner".we now have a LLc affiliation.we had a lawyer in wellsboro familar with the gas leases look over our paperwork. he said the paperwork looked fine. we are ready to sign.what are the local signing bonuses per acre these days.we dont want to sign for less than what the local "rate" is. thanks, jason
 

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I signed a couple of weeks a go for 5750/20 per acre!This is in eastern Bradford County.
 

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30-06boy, did you get the Addenda with the Lease or was it their standard form? If it is their form lease, find a new lawyer as their form is bad news for landowners.
 

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Addendum, are the rules and regulations you lay out pertaining to your land. Example... No work to be done on the property from Oct. 1 till Feb 1 because of hunting seasons.Unless a gas rig is in place or such and such..
 

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30-06boy said:
fldbred, did you sign with fortuna?
No,I signed with Chesapeak! Fortuna came in the picture to late,but I liked what they had to offer.
 

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Thanks...but I honestly wish I didn't have to think about it.If everyone around me hadn't done it,I wouldn't have!And I don't have a pot to pee in!But the money sure will go a long way!
 

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30-06boy said:
doubledog, what is a "addenda" i have no idea what this is?
To expand on the answer above, they are the changes to the standard form lease that are for the benefit of the landlowner not the drilling company. Some examples are: fees for well pads created, no storage of gas clauses, indemnification to landowner for spills, protection of water well supplies (quality and quantity), gating requirements for drill roads, restoration and seeding of disturbed areas, payment for timber that is removed to facilitate drilling operations, pooling restrictions, location of pipelines, reimbursement of taxes if clean and green is lost, etc.
 

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Discussion Starter #11
some more news to make things thicker, my dad called and told me he got a letter in the mail last week to give permission to do thier testing of where the pockets of gas are on our property. now we have just 5 acres. not sure what energy company it was though. on saturday we also got a letter from i think chesapeak offering 2500 per acre. very interesting. maybe we should just sit back and wait to see what develops here. what do you guys think?
 

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the testing you are refering to is probly what is called seismic testing. they basicaly take a 3d picture under ground.
the marcellas shale gas is not in pockets, its a layer of shale that runs from marcellas new york to tennessee. if you land is in the marcellas gas play, then you have gas under your property.
the things they look for with seismic are the depth of the shale, the thickness, and fracture lines. they also look for peaks and vallys in the shale. that 3d map looks like a topo map , and the under ground actually has peaks and vallys just like above ground.

as far as the price for leasing goes. around here we saw it start at $10 per acre years ago, its at $6,000 give or take right now, but there is not a lot of unsigned land around here.
it seems that they move the price up a little at a time, getting more people to sign with each increase. then they will lower the price back down. i believe they do that to put a fear in people that they are going to miss the peak price, thus more people sign.
then it goes up another thousand bucks and it starts over again. thats my take on the way it has gone around here.
hope that helps
 

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30-06boy said:
some more news to make things thicker, my dad called and told me he got a letter in the mail last week to give permission to do thier testing of where the pockets of gas are on our property. now we have just 5 acres. not sure what energy company it was though. on saturday we also got a letter from i think chesapeak offering 2500 per acre. very interesting. maybe we should just sit back and wait to see what develops here. what do you guys think?
I think a lot depends on what the other land owners in your area have done!If a lot haven't signed yet I think you have some leverage!I think 2500 is low,but I don't know what is going on in your area!
 

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I will probaly be on a grid by July They are just completing a pad .4 mile north of my property and just moving equip in for another pad just south of my property,
The horizontals run north & South and the proposed maps of the wells have my property included.

Depending on your lease addendums once uou are on a grid or they drill on you that's it for the leases; you are tied in to the existing lease. I signed my last lease in 2005 before all the big money leases were coming about. Can't cry about that...who knew??
 

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not for awhile ... no pipelines yet... got one marked out right across the road

Just got a call 5 minutes ago from Fortuna they want to change something in the lease... Want to meet with me tomorrow


Looks like LAWYER TIME as much as I hate that.
 

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Good luck buddy!I have a name and # for a lawyer if you need it! Man...I hate all this crap!
 

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around here they have been trying to get people to agree to increase the size of the unit for a well.
i don't have any good info to pass on as far as what that means in terms of royalty amounts , would you get in more than 1 unit if they do that..etc.
common sense tells you that it is probly good for the gas company, but is it good for land owner?
 

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I have rec'd two notices for consumptive use at drilling pads thus far and expect a third but that is based soley on rumor. My first two leases were signed with Great lakes and bought up by Fortuna.

The phone call today said something in the old lease requires a frac to be completed otherwise the lease can expire. Supposed to meet with me tomorrow and I'll have a better idea.

Lawyers office to call me back How may times have I heard that....
 
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