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My husband and I have 96.5 acres in Bradford county pa. Marcellus shale area. Our lease with Chesapeake ran out end of January. We had received a call from chief a month ago but never heard back. So we kind of gave up thinking no one was interested. So he called again last night. He is emailing us a lease in a couple days. Offering 1500 per acre and 15% royalty. Not the highest but not the worst either. Idoea this seem right for how things are now? And what is better a bigger sign on bonus or a little higher royalty percentage?
Hi Wendy. It would depend where you are in Bradford but that does not seem bad for a 15% royalty. As far as getting a bigger cash bonus or a bigger royalty, that also depends on what production in your area is looking like. Bradford has seen a lot of drilling, so there is a good chance that the production information is reliable. If you would like help with making that decision send me a friend request.
It is especially important in PA that your lease says that your royalty is cost-free. Some Marcellus operators in the past have deducted as much as 80%-90% from royalties for post-production costs.
I suggest not signing anything until you know you are getting the best deal and the best lease terms. I am a landman and would be happy to help. You can call me at 405-625-0687 to discuss.
Thanks for the replies. I work Mon-wed. So I could call later in the week. We are waiting on him to email us the lease.
You can always email me at firstname.lastname@example.org.