we just learned we have mineral rights for 83 acres in Washington county PA and a land man offered us $1000.00 an acre and 18% is that a decent price My husband and I have never dealt with mineral rights and have seen nothing about the going price now
Dear Ms Down,
Washington County is in the sweet spot of the Marcellus shale for what is know as wet gas. Wet gas is more desirable than dry gas because constituent components of the gas can be stripped out of the gas stream to make it much more profitable.
Range Resources seems to be one of the more major players in the area, having just purchased the lease positions of several other companies.
Leases, like politics, are very local in nature. What one company may offer two miles away may have nothing to do with how your acreage is valued.
From my contacts in the area, 18% is a very good offer on royalty. Bonus rates have ranged from $3000-$4000 per acre.
There is some very (last month) new oil and gas case law in Pennsylvania that makes it almost imperative that you have a very broad disclaimer of warranty in your lease.
To go into all the things that you would need to know in a leasing situation is well beyond the scope of my post here.
Thanks so much Ranger Resources is the one that contacted us and we told them we thought $1000 was to low and they said they would talk to thier bosses and get back to us. Thanks so much for your coment
Buddy Cotten said:
Dear Ms Down,
Washington County is in the sweet spot of the Marcellus shale for what is know as wet gas. Wet gas is more desirable than dry gas because constituent components of the gas can be stripped out of the gas stream to make it much more profitable.
Range Resources seems to be one of the more major players in the area, having just purchased the lease positions of several other companies.
Leases, like politics, are very local in nature. What one company may offer two miles away may have nothing to do with how your acreage is valued.
From my contacts in the area, 18% is a very good offer on royalty. Bonus rates have ranged from $3000-$4000 per acre.
There is some very (last month) new oil and gas case law in Pennsylvania that makes it almost imperative that you have a very broad disclaimer of warranty in your lease.
To go into all the things that you would need to know in a leasing situation is well beyond the scope of my post here.
Best of all things,
Dear Ms. Down,
You are most welcome. We all wish you the very best.
Melba Anne Down said:Thanks so much Ranger Resources is the one that contacted us and we told them we thought $1000 was to low and they said they would talk to thier bosses and get back to us. Thanks so much for your coment
Buddy Cotten said: