who can I contact to see about getting my land worked on as well, i think its time to lease my land out as well....larry street 304 523 0645
Exterra wont tell u and they are not paying much at all.
Chris, have you also dealt with Gulfland? You mentioned them earlier. Not certain I want to sign a lease when I do not know who the player's all are. Have to run for an appointment, thanks for responding.
Carrie Gulfland has called me 3 time they are wanting my place. they offered $250/acre for 5+5 years and just 1/8. I told them I wasn't taking that that low ball
Hello all just to let you know I have been doing some looking on the net to just see who the bigger guys are, I put a call into Chesapeake energy to speak to a land agent, they are drilling in ohio and wv , if we can get a good deal, Criss, And Jack Black, and the other around me can all make out well I hope, their number is 1877 245 1427...........I know with me being disabled, on a fixed income, and with Obamas increases in just food alone, it just gets tuffer, and I need a new truck, or jeep bad, my jeep is a 99 and has 140 grand on it....thanks....Larry
Criss do you know if West Virginia is one of the states that they have to lease land around every where they are drilling as they can drain my oil, and gas, by drilling near my property line, in some states that is illegal to do unless they buy up enough to not steal from the guys surrounding the wells.
yes they are trying to get 640/acres at least. Id say they wont be drilling in the next 5 years or so. they don't want to do less them a 10 year lease so that tells me it will be awhile.
so far no call back from the big company..i wish I knew who contacted jack black...it is probably the same as you....like you said they are gonna just resell it I am sure...yea .....I don't want them to drink my milk shake... with out paying for it.....all my land is one huge V all of it going up to the ridge I have tones of trails, or roads thru it, and jack black has been putting in roads for the last 3 or 4 years on his 120 acres...he was running water up their recently..he rents out to some hunters for a hunting camp, I am not keen about those guys have shot up my cats a bunch of time I have found bird shot several times in the cats ears n tails......I am curious to see what they will offer me...I need it but I would rather get a lot more too, I need new car money, not food money....lol...
Gulfland started at around $30.00 per acre in eastern KY Lawrence and Johnson county. They are now up to the $200-$300 range. This is still too low. Wayne county along with Lawrence and Jonson county KY are in the Rome Trough. There are 16 oil and gas plays in the Rome Trough. They are probably leasing for Cimarex Energy. Do a google search on Rome Trough WVA and Appalachain Basin Rome Trough Map.
Also check out gomarcellusshale.com for the Wayne county group there and the Rome Trough group there.
An excellent example of a good lease is at the http://www.alov.us/ web site. They are a landowner group in Ohio with over 200,000 acres leased using this lease. The lease is at the bottom of the page. SURE Lease 2012. It is a pdf file. Compare this to the Gulfland lease or other landmen leases and you will be stunned.
KY...Great information to follow up on! Thank you for sharing.
Yes KY thanks for that
You will need to read up on pooling, forced pooling, unit size, pugh clause, orphan clause. The two main unit sizes are 80 acres for a vertical well and 640 acres for a horizontal well. You are seeing a lot of 640 acre units in eastern KY for horizontal Berea Sandstone wells. You can have larger units, 1280 acres , depending on division order and state law.
Also be careful of post production costs in the lease which can decrease the royalty % you receive. Take your time and research, research, research.
A 5 yr lease with a 5yr option and no production clause at time of renewal ties up the land for 10 years as they amass the leases then shop them to the big drillers. That $2-$300 they paid is turned into $2-$3000. and more per acre.
Too many people sign the first lease they see for a pittance of what is really down there. Once they sign for the low amounts in both bonus and % they are, well you know.
I have 229/acres and gulfland told me $250/acre was all they would go and 1/8 so I told them I wont take that. That is a 5+5 lease. Can they force pool me?
I even spoke to gulf land and they said by the time they get to my part of wayne county off beach fork road the leases will be up a lot more per acre, I am guessing more like 500 a acre, this is a little easier to get to, and with my land, and the one around me I believe we have the 5 or 600 acres they are looking for the type of drilling they need to do to make every one money, and we all have timbered it to make it easy acces recently,
he said they drill out some in a fan shape some times a mile. to capture all they can, and still stay with in the law of not stealing from the guy next door..
I believe WVA has forced pooling. Almost all states do. They can only do that though when they set up the unit and the unit size before drilling I believe. At 229 acres you have a little more leverage than you think. You could always go back at them with a pugh clause in the lease releasing all acres that are not in the unit, or a pool all clause in the lease, where all acreage must be included in the unit. Usually the smaller the acerage is when you want the pool all clause. But circumstances vary. Even though a company sets up a unit for drilling does not mean they have to include all acres leased from you in the unit. So the actual terms of the lease besides bonus$ and % are critical.
Chris Adkins said:
I have 229/acres and gulfland told me $250/acre was all they would go and 1/8 so I told them I wont take that. That is a 5+5 lease. Can they force pool me?
Unless they just recently passed a forced pooling law, I don't believe they can.
Chris Adkins said:
I have 229/acres and gulfland told me $250/acre was all they would go and 1/8 so I told them I wont take that. That is a 5+5 lease. Can they force pool me?
I stand corrected. Not that familiar with WVA.
r w kennedy said:
Unless they just recently passed a forced pooling law, I don't believe they can.
Chris Adkins said:I have 229/acres and gulfland told me $250/acre was all they would go and 1/8 so I told them I wont take that. That is a 5+5 lease. Can they force pool me?
im all new to this stuff just don't want 2 mess up
You are already doing better than most, who just willy nilly sign the first lease that shows up at the door without doing any research. That has always been a problem in eastern KY with timber, coal and now oil and gas leases.
Chris Adkins said:
im all new to this stuff just don't want 2 mess up
I just hope everything works out. I think they want the 5+5 lease because its going to be longer then 5 years before they start drilling.