I have minerals in Proctor district that EQT holds by production. They want to amend the lease to include pooling language. The offer is 400 per acre to amend. Last year It was up to 1700 per NMA and 15 percent of the net. Regardless, under the law I get 12.5% of the gross and that may be better than net. Any thoughts?
HI Darren!
They cannot pool you without an amendment so there is no default 12.5% gross. EQT is typically pretty strong on their gross vs. net negotiations. Have you looked at how close your acreage is to current development? Would EQT need your property for a unit or could they go around it? These are things that I would consider as to how long I negotiate the pooling language. I would highly suggest that you also consider the taxes as a provision with the deductions. Let me know if you have any other questions.
Hope this helps!
~Rachel
$400/acre for an amendment is pretty good right now. Best I’ve done is $500/acre, and that’s when the industry was a tad more healthy than it is today. Try to get more royalty, but don’t be too surprised if you don’t. You can get gross proceeds from EQT now. It’s because of the cotenancy law, actually. If they have to cotenant you they will have to give you gross proceeds, so they’ve started giving it. If they try to tell you they won’t do gross, just keep asking for it.
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