I just received lease documents to sign. Under ownership it has 1/280. The gross acres are 31.762, my net acres are 0.11343571. The acres are in Monongalia County, West Virginia. It is Marcellus Shale. They have $200 on the contract. The company is NORTHEAST NATURAL ENERGY LLC, a Delaware company. This is all new to me, I need help on the amount for signing the lease and also they have 15% on royalty! The information would be greatly appreciated!!
Thank you, Darlene Middleton
I could not say what the leasing price is, but I do know we have land in Hampshire County and we have been wanting to drill. We are believing that an oil and gas company will go down on our land and make an offer.
It’s according to a number of factors, but you should definitely be able to get more money. Are you the only owner of the 32 acres? If so, you will have more negotiating leverage.
Apryll H. Boggs, Esquire
You have 32 acres solely. Do you have a 1/8 interest? As Attorney Boggs said, are others involved? Ask for $7,500.
Darlene,
From your message above, it looks like you own 1/280 of 31.762 acres which is from where they get 0.11343571 net mineral acres (“nma”). The math is (1/280 or 0.00357142857143 x 31.762 = 0.11343571428576 nma.
This equals about $1763.11315408278547 per acre (or $200 / 0.11343571 = $1763.11322069566982). If you owned 100% of 32.762 gross acres, you would get $1763.11322069566982 per acre based on the $200 you mentioned above.
Your Royalty is 15% of the profit they make off of your 0.11343571 acres.
I hope that helps.
Daniel Baca American Absolute Minerals, LLC