EQT wants to lease some mineral rights from us, but I think the offer is low based on what we got about 3 1/2 years ago in the same area for some other mineral rights we have. Does anyone know the going rate per acre and royalty percentage for Proctor district in Wetzel County?
I hope this isn’t too late, but prices in Wetzel have been in the $6,000-$7,000/acre range for a while. They may be coming back down with the low price of gas, but I’d push for that still.
Thanks. I have such a small interest in this particular lease that $4,000/acre was all I could get, no bargaining power so to speak since my interest is so small (less than 1/4 acre). I got 17% royalty which I was told was more important in this case. Thanks for responding!
Wetzel County, Green District. Our interest is small but have had some interest from several Land Men most recently w/EQT @ $4,000/acre @ 18% royalty. However, they were unwilling to agree to a contract based upon Gross production. Accordingly we have not entered into a lease at this time.
Yeah, EQT is still recalcitrant on that gross proceeds thing. You can try a couple different things with them. First, I know they will cap the post-production costs. We just recently got $0.40/MCF cap for the first time. Usually we’ve been able to get $0.60/MCF. I’ve been able to get a gross proceeds lease with them for a couple of my clients who have had large net mineral acreages. It’s rare.
It should become less rare, though. The new Cotenancy laws make it so that if they force a lease on you through cotenancy, that lease includes gross proceeds. Remind them of that, and see if that makes a difference. The downside to cotenancy is that they will pay you the average bonus that they have paid to other people in the tract, which can sometimes be really low compared to what you will negotiate for. Be prepared for that.
You do what you can with what you have. 17% royalty is good. If you happen to get another one reach out and I’ll help you with that. I’m one of the few lawyers that can say my clients usually make money from talking to me. It’s kind of nice.
I’m new to this and have been searching trying to figure out more about how to determine if the lease I’ve been offered is a good deal and ran across this thread and saw what you said (@Kyle_Nuttall) and was wondering if you might be able to give me any tips or let me know if I have a fair offer. Thanks in advance for any assistance
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