Current Lease Rates

West Virginia Mineral Rights Tyler County, WV
1

I am helping my mother who owns fragmented mineral rights in Tyler County. Her total acreage is around 4 acres. She has received contracts from 3 different landmen in the last month. The most recent is from S&A Property Research working for Statoil. They have offered her $4000/acre and 18%. How does this coincide with what others are getting?

-Dave

2

I have a friend that signed with Statoil. He got $4250 per acre and 18% minus production costs. He signed in August 2014. Statoil is setting up out Gorrels Run, Middlebourne Ridge and Nash's Road. I believe they applied for permits for the Blizzard well pad which will sit on the corner of Gorrels Run Rd and Nash's Road.

3

Thanks for the response. I don't think we have much of a bargaining position since she doesn't have many acres. Although, it never hurts to ask. It is pretty clear we will need an attorney to review the lease. Thanks to the "creative" wording that they use. After reading some of the posts on here, we are concerned with where the 18% is calculated, and the "Shut-in" clause. I'm not familiar with the area, so I will search on-line for those areas you mentioned. Thank You!

4

Here are links for 2 documents about leasing, aimed at Texas but with many ideas useful in WV

http://www.gdhm.com/images/pdf/jbm-ogleasechecklist.pdf

CHECKLIST FOR NEGOTIATING AN OIL AND GAS LEASE

http://recenter.tamu.edu/pdf/229.pdf

Hints on Negotiating An Oil and Gas Lease

5

Thank you for the links! I’m sure these will prove very helpful. We’re just getting underway with this, is a lot of information to digest.

6


Mr.Ufer,

My situation is similar to yours, in that I am representing my mother regarding fractional interests, also in Tyler County, WV.
These minerals are in the Elk Fork area of Tyler County. (Ellsworth District).
As you say, it is a complex process to protect oneself in this.
I thought perhaps it might be beneficial to us both to share information collected along the way.
To date, we have an offer from Antero's agent (Lonetree) for $3000/acre & 16% royalty.
I have solicited SA Property for an offer, and am awaiting a response.
I'm wondering if you have moved forward with a lease with them.