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Northeastern Pennsylvania Scranton, Wilkes-Barre, Pocono area
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Old 10-28-2019, 07:35 AM
 
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My family has been approached by an energy company to lease some inherited land in this area. All together the two parcels add up to about 170 acres. What should we expect to realistically get for that? From my limited research it seems like they should be paying us a monthly fee per acre and then a %? royalty check based on their yield. Any and all advice / knowledge appreciated!!!
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Old 10-28-2019, 08:33 AM
 
Location: Saylorsburg, PA
1,798 posts, read 2,523,205 times
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Quote:
Originally Posted by SailCT View Post
it seems like they should be paying us a monthly fee per acre and then a % royalty check based on their yield.

Correct on the monthly fee part....not sure about the royalty percentage though....a friend owned an airport up there in South Montrose and was paid monthly for the drilling rights but has since sold the place.....try this website and see what you can find out:


https://www.marcellusmineralowners.c...rcellus-shale/


I used this as the search pattern for the above hit:


https://duckduckgo.com/?q=marcellus+...tb=v1-1&ia=web

Last edited by DavidWebb; 10-28-2019 at 08:37 AM.. Reason: added more info
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Old 10-28-2019, 09:41 AM
 
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A few years ago, land owners near Montrose (Susquehanna County) were being offered $40,000 per acre for a 5 year gas lease. It's come down considerably since then.


If the gas company actually drills on an owner's land, then the owner is due a royalty depending on how much gas is produced and the market price. See links.


https://www.pagaslease.com/


Main Page - Wikimarcellus


https://marcelluscoalition.org/


Oil Shale: Natural Gas Shale: Oil Shale Stocks


Here's an attorney to contact.


https://www.avvo.com/attorneys/18657...an-994230.html
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Old 10-28-2019, 03:48 PM
 
719 posts, read 808,815 times
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Default Need clarification

When you say $40,000 per acre that is per year?

I read an article from 2014 quoting an average price of $7,500 per month per acre.

Thanks in advance for all info
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Old 10-28-2019, 04:10 PM
 
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The best thing you can do is to talk to an attorney who is in the region, and currently is engaged in representing multiple clients in their dealings with gas companies. Anything from any other source can result in confusion, as it can easily be incorrect, outdated, or not applicable to your specific situation. Good luck. There was some crazy money being made at the start of the boom, and a lucky few are still making serious cash on a regular basis. OTOH, I've spoken to drilling co. management guys, much more recently, who stated that a most landowners are going to end up disappointed, since they will never see the king of payoff they hoped for, and many will never live to see percentage payments, since a lot of that gas will be sitting in the ground until their grandchildren start getting checks.
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Old 10-28-2019, 05:24 PM
 
4,580 posts, read 4,084,117 times
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Quote:
Originally Posted by SailCT View Post
When you say $40,000 per acre that is per year?

I read an article from 2014 quoting an average price of $7,500 per month per acre.

Thanks in advance for all info
That was for a 5 year gas lease. That monthly number that you quoted may have been a royalty check. When a well is first "fracked," it produces a huge quantity of gas and then production slows drastically but may still flow for 10-15-20 years.


The reason why gas drillers were paying so much in Susquehanna County is that the Marcellus Shale is very thick in that area. There are also other gas bearing deposits at that location: Oriskany sandstone, Utica Shale and very deep (12,000 to 15,000 feet) there is the Trenton Black River Limestone.
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Old 10-28-2019, 06:29 PM
 
719 posts, read 808,815 times
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Default Its all relative

Quote:
Originally Posted by wharton View Post
The best thing you can do is to talk to an attorney who is in the region, and currently is engaged in representing multiple clients in their dealings with gas companies. Anything from any other source can result in confusion, as it can easily be incorrect, outdated, or not applicable to your specific situation. Good luck. There was some crazy money being made at the start of the boom, and a lucky few are still making serious cash on a regular basis. OTOH, I've spoken to drilling co. management guys, much more recently, who stated that a most landowners are going to end up disappointed, since they will never see the king of payoff they hoped for, and many will never live to see percentage payments, since a lot of that gas will be sitting in the ground until their grandchildren start getting checks.
Thank you very much for the great advice! This is a weird situation where there may be as many as 300 descendants and the Cabot company landman just offered us a $1,000.00 one-time payment for each of our shares of the 124 acres which is in Susquehanna County I was mistaken above where I said Montrose County. The site is outside of Montrose. Have you heard of other situations like this where an attorney is representing many heirs?

Thank you all!
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Old 10-28-2019, 07:47 PM
 
584 posts, read 257,819 times
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Odd that you mention the situation about an extreme number of heirs. I had a great Cajun character who worked with me. He once had me sign a document as a witness. It was to sell some timber land, deep in the bayous of southern Louisiana. Pretty much the same deal. All descendants were offered a couple of hundred each, with the understanding that once they all signed and nobody contested, they would get paid. He didn't know if he was getting a fair deal, or a screwing, but like most of his clan, he looked at it as money he would of never known about, or gotten otherwise.
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Old 10-29-2019, 11:25 AM
 
719 posts, read 808,815 times
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Default Updated version of---

I had read that in the early days of the fracking in Pennsylvania that the various landsmen would go around knocking on people's doors and offering to pay them $2.00 per acre for a lease. I think we have a lot of research to do and learning but thank you to all who have given me soo much knowledge in a short time. It sounds like this family land is in THE PREMO area and that seemingly may make it some of THE most valuable. I don't think I will be accepting the $1,000 offer LOL
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Old 10-30-2019, 12:31 AM
 
Location: Pennsylvania
19,659 posts, read 12,049,827 times
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I would also check out the reputation of the company making the offer. Some promise a lot and deliver nothing. Good luck suing.

Also get your family ownership settled before anything is signed. Who actually owns the land? That's the one who will get the money and pay the taxes on it. And have to deal with any legal or environmental issues.
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