Harrison County, WV - Oil & Gas Discussion

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Comment by Sharon Murphy on January 21, 2013 at 11:08am

I did just try to send you a message, but it said you had to be my friend, so I sent a friend request. I don't have any API numbers, just a copy of the original lease my great great grandmother signed.

 

Comment by Kyle Nuttall on January 21, 2013 at 10:55am

It sounds like the landman is out talking to all your neighbors.  You should, too.  If enough of you are in the same situation, you can all negotiate together.  In this case, it quite literally pays to be neighborly.

You'll have to feel things out, but at some point they should be willing to give you something in return for signing a pooling agreement, especially if you're nice and friendly whenever they come around.  If they're being hard-nosed, you might just have to sign and wait for a nice royalty check down the line.  This is the kind of situation that really is very fact dependent, and you have to make a judgment call.

The document they will be talking about will usually have two purposes, one, ratifying the existing lease, and two, allowing for pooling.  There usually won't be any other new terms.

I'm curious about his statement about the vertical well not producing to the point that it would make royalty payments practical.  Have you been receiving a flat fee royalty?

If you do want to talk to me, send me a personal message and I'll get in touch.  Also, if we do talk, have the API numbers for the wells that are already on your property handy.  I'd like to look at the production numbers for them.

Comment by Sharon Murphy on January 19, 2013 at 1:32pm

Thanks for the reply, Kyle. I spoke to the landman from Antero regarding this lease modification, but did not get the feeling that there were any possible negotiations, at least at this time, regarding royalties, or signing bonuses or anything else that I see being mentioned on these forums. He just said that they need a certain percentage of the total acreage interests to agree to the pooling clause before they can start drilling horizontally. Can you tell me when or if they would be negotiating any payment terms. Would there be new terms that would have to be agreed upon that would be replacing the existing terms for the vertical well? He says the vertical well has been producing since its' inception, but not to the degree that would've made royalty payments practical in the past. I'm still a little confused and would be willing to pay you for some consulting advice if you think I need it.

Comment by Kyle Nuttall on January 14, 2013 at 5:01pm

Hi Sharon,

1899?  Wow.  That's the oldest existing lease I've run across.  And I've been doing this oil and gas stuff for five years now.

If you're not from a part of the country that has gas shale production, here's a quick primer.  The developer will drill down to the producing formation, then curve the well sideways until it's running horizontal.  They'll then drill out as far as a mile through the producing formation.  There aren't any tracts of land out here that can contain the entire horizontal leg of the well, so they have to combine tracts into a pool.  That's mainly what they're asking you to do.

While they're asking for a modification of the lease, make sure that you talk about bumping up the royalties, and request a bonus.  If they want to change things, you should get to change things, too.  Keep in mind, though, that they probably won't want to change much.  Pooling is good for you, so it's not like you're giving something up.  But it'll be more than just an annoyance for the developer if you refuse.  Get what you can.  Also, find as much of the family as you can, and band together.  Gives you more negotiating leverage.

Kyle

Comment by Sharon Murphy on January 12, 2013 at 12:25pm

I just found this website today while trying to find information regarding oil and gas leases, particularly in Harrison County West Virginia. Several family members are apparently heirs to an oil and gas lease originated by my Great, or Great, Great Grandmother  in 1899. We have been contacted by Antero Resources and sent documents to sign to modify the lease to include a "Pooling Clause", which they say must be done in order for them to include our lease in "one or more drilling units for the purposes of drilling one or more horizontal natural gas wells". Is this something we should do? I am only in touch with my brother and three first cousins involved with this lease and have no idea how many or who all the other heirs are and/or what they are or aren't doing regarding this matter or if that has any affect on what we do. Can you offer any advice?

 

Comment by Kyle Nuttall on October 17, 2012 at 4:15pm

I'm afraid I don't have any specific info on XTO.  I know they're out there, and are a legitimate oil and gas company.  When I worked as a landman one of the brokerages I worked for had them as a client.  I know Antero is very busy in Harrison County as well.  If you want to get somebody into a bidding war with XTO it would probably be them.

Comment by Paul Martino on October 16, 2012 at 5:15pm

I have been contacted about leasing my mineral rights in Harrison County. Anyone have any iformation on whats going on in Harrison County and has anyone dealt with a company called XTO Energy?

Comment by Kyle Nuttall on July 20, 2012 at 3:27pm

I know Antero Resources is busy up in Harrison and Doddridge Counties right now.  They're offering 14-15% royalties and about $1500/AC signing bonuses from what I've seen from my clients.  Anybody else?