OT: Gas lease in PA

TomH in PA · Dec 23, 2011

Most guys signing them don't talk much about the terms, non-disclosure agreements I suppose. But I saw an article in the paper this week about a school district near Pittsburgh that signed one: 5 year lease on 165 acres - $628K plus 18% royalties. Now that would buy a few old tractors...
Drilling Lease

S.Crum · Dec 23, 2011

I understand they have paid as high as $7,200 per acre in northern Pa. Everyone's trying to get on the bandwagon especially the state and federal goverment who are taking a big chunk of it. Chesapeake is doing mostly drilling and capping trying to get as many holes in the ground as they can before the political climate changes. Infrastructure will come later. I haven't leased yet and don't really care to. I've been told if they drill in my yard tomorrow I likely wouldn't see any income from it for 10 to 15 years if I ever did. Not as many getting rich as everyone seems to think. Most of the take will be shipped to China anyway.

Anonymous-0 · Dec 23, 2011

Thats a big lease,,,,Leasing for oil is tricky!!!!
especially if you own the serfece...

John_PA · Dec 23, 2011

I can't say much specific, although...

12.5% royalties can yield up to $140,000 per MONTH on a good gas well. You don't have to believe me or ask any more questions, just take a drive around Western PA and look at some of the old run down 150 acre dairy farms with 10-15 brand new 140-160 4wd tractors sitting outside...

Fullers Farmalls · Dec 23, 2011

A lot of those leases depend on if the well pad is on your property or not. Also check so see about the water. We have a company looking at leasing our land for water rights. Just make sure that a lawyer looks it over. People are getting screwed left and right.

peteL · Dec 24, 2011

I was offered $2000/acre and 15% royalty for my property in Tioga County

Al Shaulis Jr. · Dec 25, 2011

S crum, not sure where you get all your info from, but its not total correct. The State hasn't taxed any of the gas yet, We have a good Governor that is not interested in taxing, he's interested in Jobs!!! There are more jobs around here in North east PA then you can shake a stick at. (If you want to work). My next door neighbor has 8 wells. He averages about $750,000 a month. I'm happy for him. This county that I live had only farms and blue stone. Now it has gas and I'm happy for everyone that is getting alittle money from it.

dej(Jed) · Dec 26, 2011

(quoted from post at 11:50:38 12/25/11) S crum, not sure where you get all your info from, but its not total correct. The State hasn't taxed any of the gas yet, We have a good Governor that is not interested in taxing, he's interested in Jobs!!! There are more jobs around here in North east PA then you can shake a stick at. (If you want to work). My next door neighbor has 8 wells. He averages about $750,000 a month. I'm happy for him. This county that I live had only farms and blue stone. Now it has gas and I'm happy for everyone that is getting alittle money from it.

Federal and state taxes alone would be a min. of $225K per month or more. I hope he has a good tax consultant because he could easily loose the farm if he messes up on "other income" taxes. On that much money I would guess they could take about 50% of it for Federal and State taxes.

OT: Gas lease in PA

TomH in PA

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S.Crum

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Anonymous-0

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John_PA

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Fullers Farmalls

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peteL

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Al Shaulis Jr.

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dej(Jed)

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