New Gas Offers
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2,526 Posts
got the same thing tundra who did you sign with mine is 5year and a no surface lease
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2,526 Posts
they cant come on your property but will come under from other wellheads and pull your gas mine was from southwestern . the guy from chessy was a richard crainium
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4,887 Posts
Men 12.5 is the minimum. The highest I have seen is 18%.
The upfront money is nice BUT the royalty percentage is the most important.
We signed a two year deal at $350 an acre... But the royalty is 18%.
The upfront money is nice BUT the royalty percentage is the most important.
We signed a two year deal at $350 an acre... But the royalty is 18%.
Archer, I think you are right on about the offers. My buddy who is 10 miles away signed last year for 2800 per and 15% royalty and then the bottom fell out. This has been my only offer so far, so I am rolling the dice by not signing now.Deer archer said:
I also think that some areas are alot more hot then others.
I did not sign because I thought that the offer was too low,and I do think it is heating up again.
Can you tell us here,(pm?) if your signing was recent and what area your property is located. Having us all together on where the current offers and how much would help us all. Thanks
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2,077 Posts
Yesterday, Fortuna oil offered $3000 / 18% / 5yrs to me for my property in Susq. Co. Two weeks ago, Cabot contacted me with an offer of $3000 / 16% / 5yrs. Today, I called the landman from Cabot oil & told him that Fortuna had a better offer & he said thier new offer was $3500 / 18% gross / 5 yr. and he will take me & the wife out to dinner to review the contract.
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8,133 Posts
Go with the one who buy's the best dinner
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Actually, Fortuna has been doing a lot of work not far from here. They are working on the Bradford/Tioga County border area. I have not heard anything bad about Fortuna. They seem to be good company. I don't know much about Cabot.
Does sound as though offers are coming up, at least for your land, which is great for you. Last I heard around here, offers from Chesapeake were anywhere from $0 down and 20% up to $2300 down and 12.5%
Actually, Fortuna has been doing a lot of work not far from here. They are working on the Bradford/Tioga County border area. I have not heard anything bad about Fortuna. They seem to be good company. I don't know much about Cabot.
Does sound as though offers are coming up, at least for your land, which is great for you. Last I heard around here, offers from Chesapeake were anywhere from $0 down and 20% up to $2300 down and 12.5%
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2,077 Posts
Two days after above offer, Cabot offered #3800 /21% / 5 year. Two days later (9-14-09) they offerd $5600 / 21 / 5. Boy, I'm I glad Cabot rejected my lease at $2500 back in MAY. Fortuna said they would beat Cabot's offer & will get back to me later this week after they have a meeting to discuse what Cabot was offering.
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3,322 Posts
Joe, we are with Cabot and are very happy with their practices. They are drilling like gangbusters in our area. Our unit should have 3 wells by the end of this year and 9 to 10 before 2010 is out. Linde is laying the pipeline here too. Both companies hire many locals, so they are boosting our economy locally, which we're big on. PM me as to your location. If I can be any help, I'll be glad to. We're in contact with Cabot's regional HQ which has moved to Pittsburgh. Spoke to a Chesapeake rep who shot here Friday. He said the companies will be here in force for a minimum of 10 more years. There's gold in thee here hills!!
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114 Posts
more inportant then the front money, is go with the co that your ajoining property owners go with. get as big a group as possible. you do not want to be odd man out. you want the best chance to get in a unit and the royality as high as possible. people worry to much about the front money. t
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2,077 Posts
Addendum?
I just received an addendum from Cabot & while reviewing the form, I think the oil company is trying to pull a fast one on me. One of my concerns was my percentage of royalties would be from the gross at the well head.
Below is how the addendum is worded:
1. Lessor’s royalties shall be free & clear of all cost, claims and expenses, including, but not limited to, the costs of gathering, transporting, separating, dehydrating, treating, compressing, or otherwise making the oil or gas ready for sale or use. Lessor’s royalty shall bear its proportionate part of all ad valorem, severance, gross production, gathering and other similar taxes levied on or measured by production from premise.
Another one of the Addendums that I don’t like the wording is regards to “Free Gas” it reads:
2. In the event that Lessee is making gas from a well actually located upon the premise, then in lieu of Free gas to Lessor, Lessee shall pay to lessor for each one year period…etc.
I think the way this worded in bold is if I’m in a UNIT, I would not be entitled to any payment because the well would not be on my property. Is this correct?
I just received an addendum from Cabot & while reviewing the form, I think the oil company is trying to pull a fast one on me. One of my concerns was my percentage of royalties would be from the gross at the well head.
Below is how the addendum is worded:
1. Lessor’s royalties shall be free & clear of all cost, claims and expenses, including, but not limited to, the costs of gathering, transporting, separating, dehydrating, treating, compressing, or otherwise making the oil or gas ready for sale or use. Lessor’s royalty shall bear its proportionate part of all ad valorem, severance, gross production, gathering and other similar taxes levied on or measured by production from premise.
Another one of the Addendums that I don’t like the wording is regards to “Free Gas” it reads:
2. In the event that Lessee is making gas from a well actually located upon the premise, then in lieu of Free gas to Lessor, Lessee shall pay to lessor for each one year period…etc.
I think the way this worded in bold is if I’m in a UNIT, I would not be entitled to any payment because the well would not be on my property. Is this correct?
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3,322 Posts
Cabot's contracts call for royalties after production costs. There is a suit filed that would negate that provision and royalties would be received upon gas flowing through the pipeline instead of after the company reclaims drilling costs which are running 2-3 months of production. All the addendum says is the contracted parties will abide by whatever PA law dictates regarding royalties and production costs.
Any well in your unit will produce you royalties whether it is on your property or not, that's why they pool properties into units. The "free gas" is understood as gas run to your dwelling, which we were told Cabot will not do, even though it was in our contract. All costs related to running a gas line and hook up would be borne by the property owner. The amount of gas available would be determined by your contract. We were told Cabot won't do the domestic hookups because of the liability of damage to the gas well. They have over 1 million $$ into each well and will not take the chance of well damage.
Hope this was helpful.
Any well in your unit will produce you royalties whether it is on your property or not, that's why they pool properties into units. The "free gas" is understood as gas run to your dwelling, which we were told Cabot will not do, even though it was in our contract. All costs related to running a gas line and hook up would be borne by the property owner. The amount of gas available would be determined by your contract. We were told Cabot won't do the domestic hookups because of the liability of damage to the gas well. They have over 1 million $$ into each well and will not take the chance of well damage.
Hope this was helpful.
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4,887 Posts
Sorry have not been following along.
We signed almost two years ago. The initial lease will end in February. A well should be in operation before January. We are also in a small unit just over 360 acres. We forced all the property to be unitized into one well. No surface disturbance.
We signed almost two years ago. The initial lease will end in February. A well should be in operation before January. We are also in a small unit just over 360 acres. We forced all the property to be unitized into one well. No surface disturbance.
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55 Posts
All of you who are getting so excited about gas lease offers might want to read about what's going on at Dunkard Creek: http://www.post-gazette.com/pg/09263/999458-113.stm
Or Stevens Creek: http://www.theithacajournal.com/apps/pbc...mplate=printart
Or Cross Creek Lake: http://www.post-gazette.com/pg/09156/975204-58.stm
Or Stevens Creek: http://www.theithacajournal.com/apps/pbc...mplate=printart
Or Cross Creek Lake: http://www.post-gazette.com/pg/09156/975204-58.stm
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3,322 Posts
GSP, I'm totally stoked about our wells!! Show me the $$$$!! That's ALL that matters with the wells.
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