Thanks for the info Larry. When was this ? Recently?
Definitely donât settle for $2000/acre signing bonus. You can get more. I had one that went for $5000/acre in Wetzel a few weeks ago. The company was in a real hurry to get it, and agreed to a lot of things they usually donât, so I canât say youâll get $5000/acre yourself, but $2000 is definitely low.
Iâve been hearing about more and more 19% leases. Somebody over at another forum posted a picture a week or two ago of a page from their lease with 20%. 18% is nice, but you can probably do better than that.
Donât forget about the other terms of the lease. Price and percentage are nice, but the rest of the lease can make your experience with the company a good one or a bad one.
I will try to keep this short. Got a lease from Antero for property in Tyler County that I own the surface and minerals. A vertical well was drilled in the 1980âs on the neighboring piece of property. The plat for the well included my property even though my property was separated out of the leased property in 1902 with no prior reservation, and my property was not leased prior or has since. In the 1990âs a second well was drilled by the same company and the plat for the second well showed our property was not in the leased acreage (same piece of property).
Antero assigned the neighboring property acreage to JB exploration in 2013. Antero last week did a corrective assignment and now assigned my property to JB exploration. Now Antero sent me a lease for my property. The question is: If my acreage is included in the first well should I not have got royalties? If my acreage is now in a unit for JB should they be paying royalties and back royalties? Did Antero do me a favor by including my acreage in a producing horizontal well? The lease is for $3000 an acre and 17% royalty gross at the wellhead free of deductions. Any thoughts?
There were no reservations in the original deed. The new owner in 1902 sold the property in 1940 and retained 1/2royalty no reservation of bonus or rentals. No further reservations. We purchased the property in 1990 with no additional reservations. I believe since no mention to mineral reservations in the prior deeds we should own fee simple title. I have researched many deeds in the past as I am a >grandson of the Hickman and Eddy families of Tyler County, WV
WV Blue, when you say that your property was separated out from the leased property in 1902, do you mean the surface was sold to someone back in your chain of title? And, do you now own surface as well as mineral interest? Just trying to figure this out.
Yes Nancy our parcel was part of a larger parcel. In 1902 our parcel was âcarved outâ and sold to predecessors. In 1980âs when the first well was drilled on the neighboring property they used the original acreage which included our property even though their (neighbors) deed clearly stated a prior severance had occurred approx. 4 years earlier.
Have you gone back before 1902? Some where I read that, to be safe, in WV and PA people should go back to around 1860s since then oil and gas were discovered. I have seen some reservations in the 1890s in my chain of title. Since Tylerâs old records are online this might be possible to do long distance. If nothing like that is found, that 1980 well could just simply be a mistake.
Thanks for the replyâs Nancy. Unfortunately the previous deed to 1902 is listed in Old Series book 15 which appears to be missing from the records goes back to 1860âs. I believe it to be a mistake as well on the 1980 well plat. I have recreated parcel maps based on metes and bounds of my deed and surrounding property deeds and donât believe my parcel came from the parcel with the well on it.
Tina, my great great grandfathers were Isaac Hickman and David M. Eddy both had property mostly in Ellsworth District, Pleasant Run and First Run areas including Elk Fork.
Did the neighbors retain any oil and gas or oil gas minerals in that deed? Sometimes people would sell surface and a portion of minerals, and retain a portion. If so, they would be included in a lease on your property. If they sold all their right, then they should not have been. If you have access to that deed, would be worth a very careful read.
Thanks for the offer Tina M Richardson but I believe I have everything I need for now. If you have time you may want to trace those lineages back. If you find you are related to Thomas, Isaac, David M., James R. or William H. Hickman, contact me and I have additional information for you. Their father was William Hickman. He migrated to Tyler County about 1880 from Ohio.
Yes WV Blue I think I remember looking for something in one of the old series books that was not there. Wonder what they did with it? Maybe they plan to add those sometime. Hope the actual book is not missing.
WV Blue, Do you know a Gilbert Eddy, in the Ellsworth District?
WV Blue, assuming your understanding of the ownership and the leasing (or lack thereof) is correct, you shouldnât have been included in the 1980 plat. Iâd say that you having an opportunity to sign a lease now is a good thing. If that 1980 well was put very close to your property, they may have drained oil or gas from under you, but thereâs nothing to be done about it now as WV is a rule of capture state. Getting a horizontal Marcellus or Utica/Point Pleasant well on your property now is going to be a pretty good deal. Sounds like you own both minerals and surface. Be very careful about the surface issues when you negotiate. Itâs something that doesnât get discussed on these forums much because the surface is so often separated from the minerals in West Virginia.
Sorry SCE donât know of that Gilbert F Eddy.
Thanks for the information Kyle Nuttall. I own the surface and minerals on most of my land. The newest lease I have negotiated contains no surface rights, water well testing, no warranty of title, hold harmless, pugh clause, $3000 per acre and 17% gross at the well head (no deductions) based on BTU value of the gas. I have not been able to get a 6 month payment clause or interest rate spelled out. I have several leases and in my opinion the production companies that were best to work with are Noble, Antero, Statoil, JB and Triad Hunter in that order. Triad Hunter has been holding my royalty payments since the Collins Unit was drilled about 2 years ago.
SCE, would that be Gilbert Ray Eddy married Alda Ruth Henderson
WV Blue. it is Gilbert F. Eddy. I have a lease with Statoil that list the properties boundaries with his name.
Kyle: Triad Hunter is producing the Collins Unit in Tyler County, WV. Triad filed the declaration of unitization on March 11, 2013 and included the heirs of Isaac Hickman as partial royalty interest owners. I know itâs producing because I have a great uncle who has been receiving royalty since February 2014. I have two affidavit of heirship on file at the courthouse, called Triad in January 2014 and sent a letter in March 2014 and they have not responded. Additionally the royalty interest they list in the declaration of unitization I believe to be incorrect. Triad has Isaacâs interest at 1/20th. This 1/20th interest was reserved in common by all the heirs at the point of partition of 137 acres or approx. 27 net acres. In 1927 the remaining 110 acres were sold for back taxes from 1922. In 1928 my great great grandfather purchased 1/7 interest of the 110 acres back from the tax sale grantee. Since there were no producing wells there were no additional tax statements generated.
WV Blue, it sounds like you could give classes on leasing. That strikes me as a good lease under the current market conditions.
When you say Triad Hunter has been holding your royalty payments for two years, what do you mean? Are the producing and not paying? Or is the well shut in?