I heard from one of the guys down the road that Jack Black in Lavallette was contacted about drilling on his property. I was hoping to see if I can get them to drill on mine as well. Larry, I am on Dalewood Dr.
I got some info through the grapevine that drilling is moving toward Wayne County. Trenton Formation, to be particular. I heard that a well came in in the Trenton, and was producing like gangbusters. If you’re being offered low bonuses/royalties, you should consider waiting a year or two to see what happens. Of course, if they’re offering a lease with great terms, it might be worth it to sign now. Just keep the primary term short – one, two, or three years at most. I’ll be posting this on the County page as well.
I heard they offered the guy next door jack black, something it is second hand from another neighbor who is a good friend Roger Adams, both my land and blacks go up to the ridge, I was hoping to find out who is doing the offering, let me know who I can contact if you hear, Roger said others that surround my land have been spoken to as well, they do have larger tracts, jacks is 120, and the over the ridge is 80, I have 30 acres. Thanks for finding out at least there is some interest, and I know jack has good roads on his land, I have good trails on mine. I can be reached at 304 523 0645, or once I switch back to my cell 304 360 5900…larry
I heard they offered the guy next door Jack Black, something it is second hand from another neighbor who is a good friend Roger Adams. Both my land and Black’s go up to the ridge. I was hoping to find out who is doing the offering. Let me know who I can contact if you hear. Roger said others that surround my land have been spoken to as well. They do have larger tracts. Jack’s is 120, and the over the ridge is 80. I have 30 acres. Thanks for finding out at least there is some interest, and I know Jack has good roads on his land. I have good trails on mine. I can be reached at 304-523-0645, or once I switch back to my cell 304-360-5900… Larry
I hope everyone doesn’t jump at their first offers so we can get all we can get. They are at $200-$250/acre. I’ve seen online WV places are getting $1300-$1500/acre so I think they are lowballing us.
Yes, I would not take the low offers. That is exactly what happened with the land I have mineral rights to in Harrison County. Whoever it is that is related to me that are part of the owners, they had already jumped on the first offer, 3 tracts and they gave each one of us $1500 each. Each tract is 300 acres. What a scam. That wasn’t even when it could have been $750,000 split between those of us.
What the oil and gas company are doing is paying forced pooling prices, without forced pooling. I did get my contract changed on the royalty to 20 percent at the end, not at the well, so that was something at least.
larry street said:
What the oil and gas company are doing is paying forced pooling prices, without forced pooling. I did get my contract changed on the royalty to 20 percent at the end, not at the well, so that was something at least.
So if they force pool you can get what other landowners next to you got?
Yea, pennies on the dollar for your initial payment per acre. This is land in Harrison County that I only have mineral rights to, and there are 15 or 20 other people on the rights. I was one of the last to get a contract, and even with 20 people, 1500 x 20 is cheap for 3 300-acre tracts of land. I had figured it out before to be 750,000 if they paid going rates for the holdouts or New Mexico process for Marcellus shale. That is what they are going after in Harrison County. Here in Wayne is probably only gas. I have seen them putting in new gas lines down Beach Fork Road, so 250 per acre, plus 20 percent may not be so bad for gas only. Yes, forced pooling you all get the same, but it is cheap low ball price, it favors the oil company. They are trying to enact forced pooling now, but they are paying just that in Harrison County, no more.
larry street said:
yea penny’s on the dollar for your initial payment per acre. This is land in Harrison County that I only have mineral rights to, and there are 15 or 20 other people on the rights. I was one of the last to get a contract, and even with 20 people, 1500 x 20 is cheap for 3 300-acre tracts of land. I had figured it out before to be 750,000 if they paid going rates for the holdouts or New Mexico process for Marcellus shale that is what they are going after in Harrison County. Here in Wayne is probably only gas. I have seen them putting in new gas lines down Beach Fork Road, so 250 per acre, plus 20 percent may not be so bad for gas only. Yes forced pooling you all get the same, but it is cheap low ball price, it favors the oil company. They are trying to enact forced pooling now but they are paying just that in Harrison County, no more.
Larry they are looking at the Marcellus & Utica shale in Wayne County oil & gas. That’s why I think they are trying to get it cheap to sell out in a year or 2 for the bigger money. I think I’m going to hold out for at least $500 for a 2-3 year lease. They are telling me they don’t give more than the 12.5% but I’m going to go for 15% at least.
So if they force pool me I should get at least $250 that’s what they paid 2 close to me.
I will have to look at my Harrison County paperwork, it may have been 15 percent, but it has to be not at the well price, 15 percent at the end of the total profits, that ends up being much more. I have land in Lavalette, is your land behind mine, did you buy Fred Friar’s old land? I know an Adkins lives at the end on Dalewood Drive, so you is the oil company that is doing the offering. That would be nice to know, I would like to try and raise that 250 up as well, and you have to make sure they have penalties in the contract if they cap the wells, that was happening in the past, where they didn’t have to pay anything. I have not been contacted yet in Lavalette and want to see about negotiations.
I’m on Patrick Creek in Wayne. Gulfland is the one offering $250 and Exterra is another one but they are trying to buy at $50/acre but saying they will match Gulfland.
Is it better to get at wellhead or product market price?
Yes I found through research and my uncle had also gotten his contract changed to 15 percent at the end market price, at the well you get a lot less. My uncle was a chemist for Dow and he had been through this before on our family land my mom sold to him when my dad died, land that was in our family for 4 or five generations so he and my dad’s other brothers’ kids are going to get the full amount on that 300 acre tract that they had the land and mineral rights to in Buckhannon. Mom sold it for the cost of the timber for one timbering. We had a well on that land that was paying the taxes for years. Mom just got greedy instead of passing to us 3 boys like it should have been. The well they have they were only getting it at the well and it was only paying taxes, so what does that tell you, pennies.
I found on the net where Gulfland only paid $23 to $50 an acre in Kentucky.
A buddy of mine has land in KY and they gave him $100/acre.
Chris Adkins said:
A buddy of mine has land in KY and they gave him $100/acre
2-3 years ago
Don’t settle for 15% royalties. Make sure you push it up to 18%. You can get that most places in Harrison, Doddridge, Tyler, Ritchie, Wetzel, Marshall, and Marion Counties. Barbour County you can’t, but that’s because Consol has a virtual monopoly on the leases there, and it’s only dry gas coming out of the ground there right now. Also make sure you get gross proceeds, no post-production costs.
I think if you wait and say no, prices in Wayne County are really going to skyrocket. That’s speculation on my part, but based off experience and knowledge.
If you do sign a lease at $250-$300/acre bonus, make sure it’s for a one-year lease. Then you’re getting pretty much the same thing that people are getting when they sign a five-year lease for $1,250-$1,500/acre.
I haven’t really talked to them much but I did ask about more than 12.5 and the landman told me they would just walk away from the deal.
So I’m going with Kyle if it’s $250-$300/acre bonus and will have to be at least 15%. I will only sign a 1 year.
I really think they are leasing all this land up to release it for the high $ offers.
Kyle I would love to talk to you for about 30 mins. and maybe work out a deal on hiring you lol I need some advice on some things.
Does anyone know if there is more than Exterra and Gulfland around Wayne that are buying leases?
Cris, my lease in Harrison where they are buying everything up is being bought up by Consol Energy out of Jane Lew, West Virginia, I guess in that area. I know they are going to drill for the shale oil and gas for the new power plants as they are forced into natural gas by Obama’s rules. The coal will still be mined and sold overseas; that won’t stop. They will have a huge market for it still.
We have just received a lease from Exterra Resources. Have they told any of you “who” the O/G company is that they are representing? I thought that practice (holding back the drilling company name) was a bit out of date. Will probably contact you Kyle later this week for a discussion.