Wetzel County, WV oil & gas discussion group. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
dealng with EQT, located on Lowman north of Jacksonburg, Grant District--
Are you leasing to EQT?
yes, we are waiting for their response, we rejected several surface useage items and below gas storage--CRW
That's smart. Did you ask for a Pugh clause and indemnification?
All: Am starting from scratch here. I am a mineral owner in Oklahoma and Texas. I was contacted by a friend in Oklahoma who is facing a similar situation. She was contacted by a broker for EQT. Her minerals apparently were owned by her grandfather. I am sending her my standard Oklahoma lease form to send the broker and advising that she strike the warranty clause, etc. CRW, I am interested in how things are progressing with your lease offer. Things are different in WVA than they are in Oklahoma and Texas. Also, would be willing to share lease bonus info if permissable!
P.S. The offer is for a 5-year lease with a 1/8 royalty. I'm advising my friend against this ... but again, I don't know what the norm is in WVA. Thanks for any input.
Five years is pretty standard. 1/8 is the minimum allowed by law. Please bargain up. I would hope their starting bonus offer is $1500 in Wetzel County, especially if they're on the west side of the county. The farther west you go, the more liquids are in the gas. But EQT seems to start out lower than some. I know that a year ago $2,500/acre was the going rate.
Get a No Warranty of Title clause, like you mentioned. Also ask for Indemnification. Those will help protect you from liability.
If you guys decide you need professional help, I'm a licensed WV attorney.
Kyle: Thanks for the help. I'm suggesting my friend join the forum, but if she chooses not to, I will definitely pass along your info. Three years is standard in OK and TX. I usually do leases for 3/16, 1/4 or 1/5th if I can get it. I also have a standard Exhibit "A" which includes a Pugh Clause, Depth restriction, NO DEDUCTS (lease is gross proceeds lease), shut in clause. The lease offer is for $2,500/A. Also, I had advised my friend that if they struck the warranty clause it wouldn't be necessary to hire a land man. The friend had no idea the family owned these minerals. Againk thanks for the response.
Glad to help. You seem to be well informed. It looks to me like EQT will be pretty disappointed with the way negotiations go with you. That makes me happy. We need to drive up prices here.
Glad this forum exists! Love your response. :)
My Aunt, Brother and myself are the heirs on our side of the family--we all received letters. I also asked for changes and got the same answer. Asked for more money--in a nutshell, was told fat chance of that happening.
When you have a small undivided interest, the o/g company is less willing to wheel and deal with you. A few things they shouldn't have a problem with are a No Warranty of Title clause, an Indemnification clause, and negotiating the bonus and royalty. After that, it really depends on how many net acres you hold.
Thanks for the info, Everett. I try to keep track of what's being offered in the various counties so that I can advise my clients as to what they can expect. Also, maybe I can help drive prices up a little for all you lucky folks who own the minerals.
The DEP has a page that lists all the permits that have been taken out in the past week. http://www.dep.wv.gov/oil-and-gas/GI/Pages/WeeklyReports.asp
Best of luck to you and your family.
Does anyone have any information on a company called JB Exploration I, LLC? Just received a lease contract from that company for my mineral rights. Looking for any good, bad info on this company.
Need information on JB Exploration I, LLC , anyone have any input on this company i can't find anything on the web. Thank You
After all my searching and searching , I have come up with these sites to read, some are pdf files... very interesting.. If you google "jay bee oil and gas, and scroll down you will find these pdf files... also their old business page... ill link some here... the pdf files you will have to go to google and get them, for some reason I cant link them ...
this is a pdf file:
some interesting things on here.. google as I said "Jay Bee Oil and Gas" you will find them..
I just received a lease offer from HG Energy and I was wondering if others had any success with negotiations. I have a small share of the rights to 70 acres with my net being only about 1 acre. They are offering $2500 and 12.5%. From what I can tell there is warranty, no indemnification and deductions on the gas. We’re others able to negotiate on these?
I have mineral rights in Wetzel County and am interested in selling, how or where can I determine the value?