Tyler County, West Virginia oil & gas discussion group. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
We have mineral leases with Trans Energy, Inc. in St. Mary’s, West Virginia, which are expiring soon. No drilling has been done yet. Anyone know of other companies which would pay better and actually be planning on drilling in Tyler County?
I am looking for mutual heirs of Thorton Fenton Twyman who still own royalty in Tyler County, Ellsworth District. I am working with PetroEdge on a possible lease. I would appreciate any info.
My family has royalty in Tyler County, Ellsworth District. My great great grandfather was Thorton Fenton Twyman. I take care of the taxes and business for 4 Counties in West Virginia. Jay Bee Production has petitioned the court date, Sept 27, 2012, to Quiet Title and buy the royalty at a sheriff’s sale. We have been paying the taxes on this for over 100 years. I have talked to reps from Jay Bee, their attorney Will Crichton, and the county clerk office, to let them know we are alive and paid our taxes. PetroEdge is working with me now on a lease for this tract. I have been told that Dean Rohrig is an honest attorney and is probably working on this for other royalty owners.
Can anyone give my advice on this matter? I live in Oklahoma, so everything is long distance, email, etc. Any help would be appreciated.
Thank you, Bertie Lou Stringfellow, Wetumka, OK
My family has been contacted by Petroedge regarding a lease on mineral rights we own. I really have no idea what I’m doing with this. I’m contacting an attorney there in WV who can hopefully help me with this negotiation.
Does anyone know if there is active drilling or plans to drill in Tyler County, West Virginia? I’ve read articles where Petroedge is drilling in other counties but haven’t read anywhere yet about Tyler.
My advice is to contact an attorney, either in Tyler County or any who specialize in mineral rights contracts in West Virginia.
I’ve seen as high as 17% royalty here, and heard rumors of higher. If I were you, I would ask for 3/16. Keep in mind that you’re giving up rights to the Marcellus, Utica, and Upper Devonian. Who knows, there may be other workable formations there that nobody is talking about right now.
“At the mouth of the well” is probably the same as “at the wellhead.” Here in WV the lessee can’t deduct costs from royalty. That’s good, so yes, that’s probably good.
PetroEdge has sent me a lease agreement for Tyler County, Ellsworth District, haven’t signed yet, I still have questions about the lease, too much shut-in language for one thing. BLStringfellow
Shut-in royalty is a definite concern. Language about delay rentals and delay in marketing should also concern you. All three allow the company to keep the lease alive by paying some amount of money when certain conditions exist such as no pipeline for the gas, or no market for the gas. Usually the amount of money is very small. Sometimes it would be in your best interest for the lease to expire rather than to take those payments. You won’t be able to get those clauses removed, but you should be able to get them modified.
Thanks for the input, is 16% a reasonable royalty, in Okla., 3/16 is common. Also the lease says, market value “at the mouth of the well,” is that good?
We received the actual lease and memo from the land man yesterday. He said $2000/ac bonus and 15% was generous. Sending it off to an attorney in WV to review tomorrow charging me $750 to review it. Bertie, I would think an attorney from the same state as your interest would be able to review the lease and say if it’s a fair deal. Like mine, he will expect payment up front. I figure if I’m dealing with a few thousand dollars, $750 is a wise investment. I think “at the mouth of the well” means the wellhead price is the royalty you would receive. There is a different price for natural gas at the wellhead than after it’s been transported and refined. As of last week wellhead price was $1.60 or so. I think that’s normal. Again, an attorney that deals with these contracts can tell for sure. A $1000 investment in one could save you much more later on.
Kyle, thanks for the info, it is good to know that in WV the lessee cannot deduct the costs from the royalty.
Jim, I have tried to find an attorney in WV, most in Tyler County, work for the Company, and others are too busy to take the case.
I know what you mean Bertie. I contacted two different law offices in Tyler County from the WV bar association’s website and neither returned my call. I finally went to the mineral rights owners website where they list attorneys. The one office I called the attorney himself picked up the phone and talked with me for about 20 minutes. So his office is the one I am using. It’s in Morgantown but he says he does a lot of mineral rights lease reviews from all over the state. I can give you his name if you’re interested.
Yes, I would like his name. I may not call him, but I would like the name of a mineral rights attorney for now and possibly in the future reference. We have royalty in 4 WV counties. Thanks, BL Stringfellow.
The attorney I am using is Brad Stephens. Found his name here:
http://www.wvsoro.org/resources/lawyers_experts/index.html#thompson
Thanks, I will look at the website.
Thanks for the info. I see you are from Buckhannon. I have found a cousin who has the same royalty interest who lives in Buckhannon, Norma Ruhlow. I appreciate your willingness to help. My landman told me today he is sending me new shut-in terms and numbers he says. We have owned this royalty since the early 1900s. We have been paid a casinghead rental of $12.50 per year for at least 50 years; that is as far back as I have records. I want our family to get a good lease and get some money out of this. I don’t want to be held in some lease for another 100+ years for nothing. I am trying to negotiate this lease for my family. We own 1/12 (4.87 acres) of 58.5 acres, my part is about 1/8th.
I have read your previous comments. I think I need to tell them I don’t want a shut-in payment for $1.00 per year, just let the lease expire. Is that a reasonable request or demand? You have answered my concern about the mouth of the well. There is no mention in this lease about Marcellus, etc. I know that is their intention. Should that be stated in the lease?
I feel I am taking advantage of your expertise. Do we need to retain your services? I would like to fax or email a copy of the lease agreement to you and communicate by email. Thanks for your help.
Not to make the conversation awkward, but I’m an attorney myself. I worked as a landman for four years, so I know leases. Let me know if you need someone to take a look at a lease. Regardless, keep asking questions here and I’ll keep answering them. Oil and gas is what I do.
I don’t want you to hire me out of a sense of obligation. If there’s another attorney (Brad Stevens) you have talked to or think will do a better job, please work with them.
I don’t know Norma Ruhlow yet. I’ve only been here in Buckhannon a little over two years.
It looks like you’re going into this with eyes opened wide. 4.87 acres is not a lot, you won’t have tons of negotiating leverage. But it sounds like they’re willing to work with you.
Yes, request a lease with no extensions, and if they have to have a shut-in royalty payment, make sure it’s expensive for them and lucrative for you. Request the same for Delay Rental payments and Delay in Marketing payments, too.
I also recommend that, at a minimum, the lease includes a clause stating that you are not warranting the title, a clause granting indemnification, and a Pugh clause. They’ll fuss and holler most of the time, but if they won’t include these clauses I think you will be better off just not leasing.
I’ll send you my contact info in a Personal Message.
Thank you for your reply, Kyle. I have not hired anyone and you seem to understand my concerns. We are in a sort of a pinch for time. Jay Bee Prod. has petitioned to court before a Judge Karl, date of hearing is Sept 27th to quiet our title and take our royalty in a Sheriff’s sale. They tell us the Twyman family has no leasing rights only royalty and Will Crichton the attorney has told me they are going to drop the Twyman’s from the suit. I have nothing in writing. Jay Bee acquired our lease from Ritchie Petroleum (it has passed through many operators over the years). I think if we don’t lease with PetroEdge before the court date, we will never have an opportunity to lease again, at least in my lifetime. I have been feverishly trying to find out all I can about other relatives and lease holders for info. I have not been very successful. Norma Ruhlow’s attorney says just wait.
I see you went to OU Law school. Please reply, I really want you to look at this lease. What are your fees? Thanks for your help and interest. Bertie Lou Stringfellow, I hope I am contacting you on a private forum.
Yes, I did go to OU Law. That’s when I discovered that I enjoyed oil and gas law.
Norma Ruhlow’s attorney may be right. Sometimes it is better to wait than to sign a lease. There is going to be oil and gas development and production going on here in West Virginia for decades. I’d want to look at the lease before making that call, though. I sent you a private message. I look forward to talking with you.