I don't know about EQT but I signed a lease with Antero, NOBLE ENERGY and Consol. In our lease it is stated that we have NO DEDUCTS, which is what you want to go for. Now with everything going down to rock bottom, I am not sure what they will do on NEW leases. Good Luck!!
I also have no deduction with my Antero leases. But they were all signed in January of 2012... prior to this significant downturn in commodity prices
I had heard at least a year ago that EQT started a policy of not giving no deductions leases. Absolutely none, I heard. I have also heard that Antero has become less and less willing to give no deductions leases, predating this recent oil price downturn.
Ah... so that would indicate that the price decline has nothing to do with it, right? Come to think of it, they don't necessarily have to be linked. Maybe they were having a harder time getting leases signed back then.... so that made them more open to modifications.
Yes, or maybe they just started drilling wells and paying the full royalty and decided they wanted more of it for themselves, especially with a royalty percentage higher than the old standard 1/8, or 12.5%. I saw a 2012 lease with no deductions and an 18% royalty. It was a 10 year lease, which is in Antero’s favor, but with a depth clause retaining below the Marcellus. That is the lease I want. I heard the landman who had gotten that lease speak regretfully about it LOL
Now THAT is enlightening! I always thought we had the rights for ANY depth! My assumption has always been that with the developing technology it wouldn't be long before they can go deeper...and there is so much more underneath!
Like the Utica! which has recently been drilled in Tyler county with a huge production.
If you didn't restrict any depths, your lessee can drill as deep as they want. But if you said something about no more than 100 feet into the Onondaga, or something, then they need to get another lease from you (and pay more bonus) if they want to drill deeper formations (like the Utica).
My theory on the leasing: Antero, like many companies, needs to watch its pennies now with prices lower. Most of the easy leasing has been done: people who sign right away with no changes, or simple changes like not warranting the title. Or people who only want a bigger bonus and no changes, or a higher % but leave in the language about deductions. Etc. Anyway contract landmen can do that. They are dispensable.
Also, with the new legislature in WV (after the elections, the Republicans took control) the industry hopes to pass a forced pooling bill that will force those of us not leased to lease on terms that we don't like and can't hold out for better. They (Antero etc) can wait until the legislature acts, then go back to get more leases (from the "holdouts" who want good terms in the lease like "no deductions".
The global oil market will keep on doing its thing, with Saudia Arabia keeping up production either to harm Russia and iran, or to harm the US oil producers, or some other reason. They can't do it forever, and meanwhile it is a cold winter some places and more natural gas will be used, and power plants will continue to be converted to natural gas, and the process of exporting natural gas is progressing, and the cracker plants will continue to be built with the contracts in place to supply them with natural gas liquids, so the companies will keep on drilling, and sooner or later keep on leasing.
There is my crystal ball view.
some of the wells have both Marcellus and Utica, I know wells that were turned in line producing BOTH, and one was in Tyler County.