lease offers

Post the most recent offers you have received for lease dollars per acre, and commission percentage.

lease offers

Postby edepots » Fri Aug 01, 2008 5:59 pm

We live in Smyrna and Nornew is drilling near us, coming over the hill from Lebenon. When they first approached us this Spring they offered us $50. per acre and 12.5% realty. Three or four weeks ago they increased it to $80. per acre. We said no and have joined the coalition. They have completed a vertical well up the road from us (what a convoy of trucks and equipmnet!) that I have heard is very succesful. The week before last a new land man came an said Nornew is msking a last push through this area and had a new package to offer us $2,500 per acre and the same 12.5 % royalty. To say the least we were shocked. Again we said no. (Gulp). Yesterday they came around wanting us to sign a seismic testing lease. And once again we said no. Who knows what will happen next. They say they are not interested in the Marcellus Shale. The permit for the well up the road says they are after the Oneida/Herkimer play.

Anybody else?
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Re: lease offers

Postby highwinds » Sat Aug 02, 2008 9:36 am

We are in Plymoth and Nornew has been after us for years. Several weeks ago they offered a signing bonus of $500/acre/year for 5 years with royalties of 12.5%. Thus, $2500/acre paid over 5 years. However, if they drill a well and we are part of the "gas pool" the $500/acre/year signing bonus payments stop and we get the gas royalties instead. Is this what they offered to you in Smyrna? Or was it $2500/per acre signing bonus all at once?
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Re: lease offers

Postby edepots » Sat Aug 02, 2008 9:37 pm

Our offer in Smyrna was the same as yours in Plymoth....2,5000 per acre over 5 years. They said they could pay us 2 years up front.
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Re: lease offers

Postby ocean113 » Sat Aug 09, 2008 2:28 pm

to all
last week during Otsego fair. I was contacted by Mhitmar representative. He Offered me a lease on my 50 of 2,500.00 total sign up bonus and 13.5 roalty out put of well. New Lisbon At the time i didnot know what was going on and what is at stake. still learning but I am glade I joined the coalition..I have a lot of questions and i want to portect the enviornment and the farm way of life.
tony
Last edited by ocean113 on Tue Aug 12, 2008 7:15 am, edited 1 time in total.
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Re: lease offers

Postby edepots » Sun Aug 10, 2008 8:46 am

ocean113 wrote:to all
last week during Ostego fair. I was contacted by Mhitmar representative. He Offered me a lease on my 50 of 2,500.00 total sign up bonus and 13.5 roalty out put of well. At the time i didnot know what was going on and what is at stake. still learning but I am glade I joined the coalition..I have a lot of questions and i want to porctect the enviornment and the farm way of life.
tony


Where is Ostego? Good for you for being prepared enough to say no...for the time being.
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Re: lease offers

Postby snbfarmer » Mon Aug 11, 2008 7:04 am

Has anyone countered? The current offer appears to be $2500 per acre and 13.5%. I'm surprised that we haven't been contacted since it was $50 (we have 425 acres in two locations). I have a counter ready which will be rejected but will be interested to see if there is any negotiation possible. There is no reason for them to counter as long as they are getting leases at $2500. This offer level may not move much until this is more than a two company market. (Otsego County Fair is in Morris Edepots).
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Re: lease offers

Postby Giff Clampett » Mon Aug 11, 2008 12:39 pm

message deleted by poster
Last edited by Giff Clampett on Tue Aug 12, 2008 1:03 pm, edited 5 times in total.
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Re: lease offers

Postby ocean113 » Tue Aug 12, 2008 7:25 am

sir
2 kinds of leasing ?????
1. leasing to put a well head on property and to have a latitute line going under your property to a well head.
2. a lease for seismic t esting lease ( this is new to me)
if any one can educate me on this or explain with more information.
tony
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Re: lease offers

Postby edepots » Tue Aug 12, 2008 11:19 am

ocean113 wrote:sir
2 kinds of leasing ?????
1. leasing to put a well head on property and to have a latitute line going under your property to a well head.
2. a lease for seismic t esting lease ( this is new to me)
if any one can educate me on this or explain with more information.
tony


Nornew came to us in Smyrna and asked us to sign a seismic testing permit. No compensation. Good for one year. Allows them to go anywhere on the property, dig holes and set of an underground dynamite charge. They also can clear paths for their machinery and in some rare cases build a helicopter landing site to deliver materials to hard to reach areas.

I suppose if you had signed a lease and were waiting for a well to be drilled so you have a chance at receiving some royalties this would make sense, but since we have not signed we said no. Hope this helps.
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Re: lease offers

Postby csteeley » Tue Aug 12, 2008 6:44 pm

Im in Worcester, Whitmar offered 50 an acre 12.5%, Covalent offered 10 an acre and 12.5% Royalties. I have 30 cleared
acres in Worcester. They drilled in the 50s and found gas but couldnt get at it. I told them ive done 40 hrs of research
on the internet, and laughed at their offer!! I know its coming, and the offers will dramatically increase, especially
since an attorney i know said the wells around here are producing very well. Im also glad i joined the coalition!!!!

Chris :lol:
Uncle Rico
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