I believe my buddy got 17% in that area from Antero.
Question, Does anyone know Royalty paid per acre by Antero in Doddridge County New Milton District, “just fishing”.
Thanks Mike. You folks want to here a joke. I just received a lease offer from Antero With this note> This offer is time sensitive and will become null and void after the date of May 31st, UNLESS PRIOR ARRANGEMENTS ARE MADE, I laughed so hard my back hurts.
Stephanie, I just talked with the landman, and he said that he always sends that out as he is always in a hurry, (as if we didn’t know that already).
Who are you supposed to make arrangements with?
Standard procedure, I know! But if you miss their deadline don’t they usually come back to you with a better offer anyway?
Since I have not heard too much on the forum of late, it must mean that you out there are now receiving Royalty and are all fat and sassy, but if you are not receiving Royalty> could it be that Antero’s lack of pipeline is holding up production, Think about it, With all the Well’s in production,( I personally i have 4), they have to lay a lot of pipe ( and to lay pipe gets the product to the Market). I have even heard that the newer wells are turned down to 25% of there potential due the shortage of pipeline. Just something else to think about.
I would not make such an assumption.
I meant i would not assume that anyone is now receiving royalties, that is one heck of a leap from negative evidence, the lack of persistent complaints.
How many people voted in any recent presidential elections? Just because people are too lazy to vote, or believe that their vote does not matter, does not make me assume that they are happy with how things are.
RW, source of information comes from insiders a whole lot smarter than you or I. Lot’s of wells and lot’s of ground to cover, building pipe lines takes longer than a day, go through out Doddridge and see for yourself. I was there in Sept. of 2013, and seen a lot going on, sometimes it’s good to be a little optimistic.
VERY valuable info, Mr. Nuttall. Thank you very much for that.
In case anyone is new and does not know you do not want net because you have no control over how much the oil company takes out in post production costs to make product ready for sale or transport. Remember the poor 200 net acre dairy farmer in Pennsylvania with 4 gas wells who gets checks for $0.10 a month because it’s all eaten up in private gathering line transport costs. The operator pays the same to move their product, the difference is that they own an interest in the pipeline company so they get part of their money, and the farmers money back, and on top of that, the oil company gets a rebate, negotiated when the oil company sold the lines to the pipeline company in the first place.
15% gross is very close or better than what you would receive from 18% net anyway, with the added protection that they will not jack up the post production costs to the point you receive nothing.
I noticed Arnold L Stuart asked what the percentage was that Antero has been giving in Doddridge County. I’ve been able to negotiate 18% net on pretty much everything. I prefer gross, and have been able to get it occasionally. Usually gross ends up at 15%, but I’ll take that over pretty much anything that’s net. Also, FYI, I’ve just gotten 19% gross in Marion from a company that was desperate, and am negotiating for 20% in Tyler, though that’s not even close to a finished deal yet.
Thank you, Kyle Nuttall and R W Kennedy for the info regarding % in Doddridge County and the difference between net and gross. This newbie REALLY appreciates it!
Thank you, Mr. Nuttall!
Nancy, Lease is on it’s way to me, anxious to see the terms. Thanks for your input.
Just received a call from Noble Energy wanting to modify an old lease currently with CNX. Total acreage is 200 acres, my share being 1/10. I currently receive a 3.50 check one month, and a 7.50 check another month. Original terms were for 12.5 % Royalty. The wells on this property are of course Vertical Wells and of course they want to go Horizontal. Original lease signed in 1909. I asked for 14% Royalty and they are offering to pay $500.00 to sign. So my question is> has anyone done business with Noble Energy and how are they to negotiate with?? The subject of modifications have come up before on this forum, and it’s always an interesting topic. The property is in West Union District, and is part of a Gaines lease.
Thanks a lot Kyle Nuttall! very good information.
Arnold, I had Noble wanting my sister and me to modify an old (1980) lease in Ritchie to increase pooling size. They offered some good money but I was even more interested in getting the lease altered. We had stupidly signed a lease modification (with Dominion) allowing them to take out some of our royalty in the future. Later they stopped calling, and we found out that our lease allowed the pool size they wanted after all, or they altered their pool to fit it, so we didn’t get anything out of the deal except the hope of royalties. Anyway it shows that when they really want you they will give you payment per acre to modify.
The thing to keep in mind in these situations is that companies like Noble want to do the horizontal wells so need some arrangement with the lessees of the shallow wells. In our case I found the lease assignment between CNX (successor to Dominion) and Noble wherein Noble gets 50% of the working interest, leaving Dominion with 50%. This working interest is the 7/8 of the revenue from the well, after expenses. The other 1/8 (12/5%) is royalty. So if Noble gives any on the royalty % it comes out of their 50% I think, so they are reluctant. But if they want your property badly enough, things might happen. And ask for more on the signing amount. They always offer less than they could.
Just learned something new (for me)> a drilling company only needs one person in a track to sign a lease in order to file for a PERMIT, I thought every one in that track had to sign before a permit was filed, so if a permit is filed and approved to drill, what stops them from drilling without all persons in that track signing? Might explain why we hear so much about title problems." Legally", I know they cannot drill without all signing" BUT".
Thanks Arnold. I went to the site and think I know what WMP is. Water Management Plan. I know water management plans are a big part of the paperwork filed with the permit issuance.