Marcellus Shale in Garrett County, MD

Teri Lynn · 2011-03-16T00:59:34Z

Can anyone answer the following questions regarding lease negotiations for mineral rights? The location is the Marcellus Shale in Garrett County, Maryland. 1) They are offering us 16% of the value at the wellhead of the gas and/or oil produced from our interest which is 1/24th or 4.16667% of 100 acres. I would like to know if this is a fair royalty payment and if not, what the going rate is for this area. 2) They are offering us $500.00 per net mineral acre as a signing bonus. I would like to know if this is a fair bonus payment and if not, what the going rate is for this area. 3) The lease contains a provision that allows an indefinite extension of the lease by payment of a $2.00 per acre rental. I would like to know if this is a fair rental amount and if not, what the going rate is for this area. 4) The lease provides that any royalty payment we receive will be net of all post production costs. I would like to know if this is standard or should it be stricken from the lease. 5) The lease uses the term "leased substances" without defining the term. We are asking them to revise the lease to list all substances included in this term. I would like to know if it is in our best interest to only lease certain minerals such as gas and oil and exclude other substances that may be more valuable. Thanks to anyone who can help.

General Mineral Rights Discussion

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