I helped my father buy some land close to where he grew up. His goal was to move back to this place. Fate had a different plain, my father passed and I purchased the land from my mother. I was borned in Paintsville,Ky and the thought of retirement was in my head.
My land is in eastern Ky Martin County North of Inez. I have 425 acres that an individual from Exterra Resources wishes to lease. I do not know what kind of price I should receive. I need information on lawyers and any other helpful tips that come to mind.
Thank You, Darrell Starr-Jude
Darrell
Exterra, Gulfland Appalaichain Energy and TerraNova are all active eastern KY. All are offering between $80 and $300 an acre bonus. All three are landmen. Exterra and Gulfland are not drillers or drilling companies. All three will offer 5 yr lease with 5yr option. This is so they can amass the leases then sell them as block for $$$$. Some people are signing for that amount of bonus per acre, some are saying no way. Exterra may be amassing leases for Continental Resources. Gulfland for Cimarex Energy. Not sure about TerraNova since they may do some exploration. Exterra is out of Tenn. Gulfland is out of Louisianna and TerraNova is out of Morehead. Some say the bonus dollars will climb to thousands of dollars in the coming years because of what is called the Rome Trough. You might be in the trough.
There are many critical points to the oil and gas lease besides $ bonus per acre. You will need to read up on pooling, forced pooling, pugh clause, pool all clause.
On this site for starters look at the county groups. I just started one for Lawrence and Johnson county. And am starting to post some general information. Also look at the Wayne county WVA group on this site.
There is another site, gomarcellusshale.com that has info also. Just do a search for Wayne County WVA, Johnson County, Rome Trough, Berea Sandstone. On that site also search Ron Hale and Ironfarmer for discussions.
Some Links:
http://oilandgas.ky.gov/Pages/Welcome.aspx
This will have info on permits, wells, operators etc.
http://kgs.uky.edu/kgsweb/DataSearching/oilsearch.asp
Searchable database of oil and gas records etc.
Take your time and research, research, research no matter what you decide.