Anyone here benefitting from the Shale/Gas land leases? (Bradford: 2009, attorney)

[KarenRice]

NOBODY - NOBODY - NOBODY should enter into a lease w/ a company without the help of an attorney experienced in gas/mineral rights issues.

I'll say it again:

NOBODY - NOBODY - NOBODY should enter into a lease w/ a company without the help of an attorney experienced in gas/mineral rights issues.

[sp2007]

Thanks, I know my parents have a lawyer who has does help them with this. But to be honest, this "oil rush" sort of sprang out of nowhere recently. And living out of state for awhile now, I had no clue when they brought it up to me.

Anyone else have any info or stories to share on this subject?

[MermanMike]

The most interesting story about gas leasing is the NWPOA (northern wayne property owner's alliance). Someone will have to make a documentary about it one day since it has changed the way landowners deal with gas companies. A very community minded woman started calling neighbors to put together a group who would all chip in money to pay for an attorney to write a land owner (and environmentally) friendly gas lease. Well, it gained momentum, after a year or so or collecting members, we had about 60,000 acres of land in our group. We all chipped in $25 to hire two of the best attorney in the country, and then made our lease terms and land map available to gas companies who then bid for the opportunity to work with us. We ended up signing leases with Hess, a company who has not done any other leasing in the area other than our group. We are very satisfied with Hess's record compared to the other companies in the area (Cabot, Chesapeake, and others).

Since then, many other land owner groups have formed around the state and country to negotiate better terms for land owners.

[wanneroo]

One thing you have to watch for is getting signed up and then not getting your money which happened last year in Tioga county. Then the company came back and offered half with increased royalties. Which if they never drill nearby, you get no royalties.

If anything it has driven up land prices but I think the returns are going to be a long time coming and I don't believe it's going to be the gold rush people think it is. Everyone with land now thinks they have a gold mine and you have to watch because some sneaky people are trying to sell their land at inflated prices and then retain the mineral rights.

I learned from family in Colorado and my great grandfather who had many oil/gas leases that those returns can be fleeting. Most landowners are too uninformed about how it all works. Oil and gas companies are set up so if prices fall they can go bust without harming the parent company. For the record there is no shortage of natural gas anywhere in the world.

Don't be like the stupid people I heard of that signed a lease and went out and bought all types of motorcycles and RV's and other crap they couldn't afford and then didn't get paid. Unfortunately there are quite a few people that are not too bright or uneducated or uninformed and there is no such thing as "free money".

Most of the workers are also being brought in from outside. Will be interested to see if some local people get hired.

Ultimately I look at it as a bonus. If you can negotiate a lease and get some money from it, then good, but I wouldn't go out and buy all kinds of crap and go crazy. I would never depend on it as a steady income and make sure those checks clear the bank before you spend them. And I would have an independent, experienced lawyer look it over before you sign. Preferably a lawyer out of your town that isn't on the "payroll".

[Letimus]

Our group signed with HESS--I am not pleased as I am one of the last group of land owners (107 acres at 7500-9000ft) land in Wayne County..,Now they want to say their title seach rendered a transfer of mineral rights 60 years ago!! No way would my parents not have know this. My father was a well know property insurance agent. I want to know who received their intial dollars just for signing the lease.

[Letimus]

Originally Posted by nkotb

Most of my neighbors signed for $2000. an acre and less several years ago. Some of us held out and we recently signed for $5750. an acre and 20% royalties !!

Who did you sign with to get such a great rate of $5700 per acre and 20% royalties?

[sp2007]

The gas company and co-op my parents were working with was NWPOA and Hess. I am under the impression that both tried to give my parents a rather weak deal that highly favored the gas company. I am not so sure this NWPOA alliance is as great as you say MermanMike.

[Rick323]

Originally Posted by Letimus

Who did you sign with to get such a great rate of $5700 per acre and 20% royalties?

Chesapeake paid that to a large group in Wyoming county just recently.

Originally Posted by MermanMike

The most interesting story about gas leasing is the NWPOA (northern wayne property owner's alliance). Someone will have to make a documentary about it one day since it has changed the way landowners deal with gas companies. A very community minded woman started calling neighbors to put together a group who would all chip in money to pay for an attorney to write a land owner (and environmentally) friendly gas lease. Well, it gained momentum, after a year or so or collecting members, we had about 60,000 acres of land in our group. We all chipped in $25 to hire two of the best attorney in the country, and then made our lease terms and land map available to gas companies who then bid for the opportunity to work with us. We ended up signing leases with Hess, a company who has not done any other leasing in the area other than our group. We are very satisfied with Hess's record compared to the other companies in the area (Cabot, Chesapeake, and others).

Since then, many other land owner groups have formed around the state and country to negotiate better terms for land owners.

I was told this is normal leasing agreement in Texas (for years)-land owners forming companies for gas and oil leasing.

[nkotb]

Originally Posted by Letimus

Who did you sign with to get such a great rate of $5700 per acre and 20% royalties?

We signed with Chesapeake

[KarenRice]

This was printed in the Wayne Independent.

Gas company slapped with environmental violations - Honesdale, PA - Wayne Independent