I and my family signed a lease with Antero 6 yrs. ago at $1500 per acre.
Knowing zero about mineral rights leasing we signed. We have since
educated ourselves and believe we should have received $2500 per acre
at that time. In May 2017 we were offered a renewal at only $1000 per
acre. We refused to sign for that amount. Antero has refused to
negotiate and recent calls to Antero headquarters and the land
agent have gone unanswered. Any suggestions where we go from
here?
What state?
I would suggest holding out, I guarantee you will be contacted again.
I take it the lease expired in 2017? Natural gas prices are very low which is probably what they will be going after. If lease has expired they may not be interested now with prices where they are and they may have less or no interest in that area now. The other way of looking is if you don't get another lease in 3 years from May 2017 then you will have lost $1000 per acre on a 3 year lease.
You can sometimes overplay your hand
I would market it to a third party.
Doddridge Co., WV
Thanks for response. Guess I just feel they are low-balling like they did the first time
around. Also, our renewal was offered in May 2017 and I noted that in Dec. 2017 in
the Greenbrier Dist. leases were offered by Antero for $2500 per acre. ??
Shirley,
AR is very active in Doddridge Co. and I still suggest you wait to be approached again. If nothing else, reach out to their office in Bridgeport.
Good Luck
Any suggestions of companies interested in this area (Greenbrier Dist., Doddridge Co.) Thanks!
Shirley,
Yes, 2,500.00 / NMA bonuses are very common for that District, I have received even higher.
Shirley,
AR & EQT are the two major players in Doddridge, with AR leading the way. Under no circumstances would I sign a lease with EQT, I have had nothing but terrible issues with them, including deducting more than 100% of my royalty on a no deduction lease. They have sued me three times to force me to lease to them, each time I have been successful in winning the case.
;;;thanks!!
The renewal offer was for 5 years. I just don't want to tie it up that long for
this "minimal" price. After reading comments, do you think Antero would
go for 2 year lease? Also, there is a pooling clause in the lease. Have no
idea what that is about. Again, to you and others, thanks for input.
Currently I am unable to get any leases for less than 5 years with Antero and I have a significant amount of property tied up with them.
Pooling allows for a horizontal leg to pass through your property and the neighbors property, royalties are based on percentages of the parcels a leg goes through. Example, if a leg goes through your 100 acres and my 50 acres, you receive royalty based on 2/3 of the production and I receive 1/3.
Feel free to send me an email through the site if you have any specific questions.
Thanks for the clear explanation of the pooling clause!!