I'm new to this forum and need some help, please! My family and I have been approached by Chesapeake to renegotiate a mineral rights lease for 22+ acres in Marshall County, WV. They've offered us 12% royalties, net, and $100 each to sign the new lease. The way I read it, it allows them to drill through the existing natural gas storage area beneath the tract and has no expiration date. My question is this; is the 12% offer the going rate for royalties? There is a further complication to this situation; there appears to be a large natural gas compressor site on top of the land and we wonder if using the played-out oil reservoir as a gas storage area constitutes "production" if they shift gas in and out of the property? Since there's no way to keep track of any gas seeping into the storage area (or out, to be fair) how do we know that we aren't owed "something" for such use? Any comments or information would be very welcome; we thank you for your help!
I would love 4 U 2 get Reply, I'm in the same boat as U, that we have 40 + acers and columbia gas transmission has staorage compressor on location that send out small check and just sign with chesapeake appalachin llc for deep gas well mineral rights under the 40 + acers for 12.5 %.
I think we should get paid 4 all gas going threw.
If U did get an answer please let me know something, thanks.
Your offer sounds very strange. A normal lease that I sign is 3/16ths royalty and 3yr lease. Sometimes I will sign a 2 yr extension. But having no end date I don’t thinks is a good idea. The bonus should be per acre also.
I’m in Pennsylvania… We completed a lease last year for 6000 an acre and 20% royalties. This was also a 5 year lease with right to renew for the same bonus after 5 years. It was also with Chesapeake.