More news on Ritchie County. We are now on our third land man with Antero. They say there were massive layoffs in December and they had 40% cuts. We finally got our deal negotiated on the modifications. I insisted they change the royalty language as well as adding other clauses. The royalties clause said paid per the laws of West Virginia. Well I happen to know that EQT is suing to overturn the 1982 law that states royalties on new wells on old flat rate leases were to be paid 1/8 royalties. They rewrote the offer again and stated 12.5% royalties on all production. The family members that prepared for this and had their heirship/wills filed in the county five years ago in anticipation of this have received their offers. Thatās only about 40 of 120 heirs, lol. I negotiated the general terms but each individual is able to negotiate for themselves. The permits for our wells were issued February 1.
Beth:
Excuse me for being ignorant on this matter, but this is all new to me. Back In Jan of this year I got a letter from Antero regarding a modification to a lease, but forgot about it. Just last Saturday I got another letter requesting me to sign a modification. Your post sounds like we may be dealing with the same tract. The original agreement was signed by my Gr Gr grandmother, A Hogue, on Mar 1 1907, also a 90 acre tract in Clay Dist, Ritchie County WV.
Yes it is. Iām a descendant of her daughter Mary Hogue Elliott
Thank you for replying. The āofferā I received was for my signature and tax info was a flat fee of $500.00. To me that comes out to $5.55 per acre. (seems like a real bargain for them) Other than that in the body the the amendment where it states in consideration for the sum of $1.00, the lease would be amended to āpoolingā, which means nothing to me. I have tried to contact the number listed, but have received no answer. Should I hold out for a higher āsigning bonusā and make them stipulate a royalty of 12.5% that you referred to in Feb?
Hi Beth, I have two friends who have interest in one or another of those Hogue tracts. They are near a couple of tracts that I have interest in, so I looked them up. If you (or anyone else) wants a copy of the document I prepared to help sort this out, send me a friend request.
Hedge, you are only a small part of the 90 acres. My mother (84yrs old) is a 1/56th of 12.8 acres of the 90. So your share, depending on your genealogy may be quite small. I have a copy of Almarineās will dividing the 90 acres between 8 of her children. My mother signed the modification for $500 and 12.5%. Many cousins signed for $200. Their shares were like 1/168, depending on wills and number of siblings. Hope this helps.
Beth and Hedgeā¦Nancy and I have been working with the Dotson interest in that area. (Lucy and Russ Dotsons grandkids.). There grandmother was Lucy Elliot and her mother was Mary Hogue Elliot. I believe they received a modification on a 90 acre tract also. Probably the same one. Sounds like there should be a family reunion from all this.
Not sure how to friend you on this. I would be interested.
Beth: Thank you. Your clarification and insight to what others have signed for does help.
I know the Hogues do one each summer. The families are very intertwined. My grandmother was a Dotson, grandfather an Elliott and I think Lucy was an Elliott? I have to check my Ancestry. The elliottās Have a reunion each summer too. It is mostly attended by Shirley Elliott descendants but cousins from his siblings attend too.
I agree on the family reunion part
I sent the link to Russ Dotson Jr. He may join in.
Drilling is set to start in a month or so according to my contact.
Yep. Iāve spoken to Russ junior. He negotiated a different deal. Definitely great aunt Lucy. I believe Russ is in Florida.
Russ and Dale Jr. live down south. There family and ours negotiated other leases in Ritchie. Russ and Lucy Dotson had a daughter Jackie Lefever too and she had 4 children. Russ Dotson Sr. was my wifeās uncle.
Hi Beth, This is the lease originally signed by Almarine Houge? If so my shares come to me through my grandmother Lucy (Elliot). The land man isnāt being entirely honest or perhaps he just doesnāt know any better. When they are requesting a lease modification, any aspect of the lease is subject to modification as long as both parties agree. Antero my be unwilling to modify but that is not the same as canāt. We requested 18%, which they are paying us on other leases we signed in 2015. The $300 you see is the signing bonus. Royalties are a different matter and are currently paid at 12.5%. Do not agree to the enhancement clause. They have tried to add that to every lease weāve negotiated. It just gives them permission to deduct some of their business expenses from your royalties.
Just a bit of information for you to consider. We hired an attorney to represent us in the 2015 negotiations with Antero on a different tract. We ultimately got $1000/ acre signing bonus and 18% royalties on production at the well head. The attorney ultimately did us a lot of good but be aware that Antero got much more aggressive once we hired the attorney. They went so far as to sue us for partition. They are using a law that specifically states it isnāt to be used for oil and gas but they have a judge that apparently is allowing it.
Yes, I understand. I spoke with Dale a few months ago. And yes, terms seemed to be more generous in 2015. It also depended on the size of ownership.
Neither Dale, Jr or I have signed anything in regards to the modification on the 1907 lease. 3 of Aunt Jackieās 4 children have not signed yet either. We would be more than happy to join you as a block to negotiate with Antero.
I sent Cousin Steve Lefever this link as well.