Mineral Rights

[jinman]

And if they are working in the area, have a water test done by a reputable lab to conclusively prove the pre-existing water conditions.

Aaron Z

Great advice! You MUST know what you have before you can claim change. In our area, everyone with any type of problem blames it on drilling. Many of these wells have had problems long before drilling ever started. I know one person who complained of crummy water over 15 years ago, but all of a sudden now that there is drilling, his problems are due to the wells. I think not. My biggest concern with drilling and the aquifers is that drilling operations use millions of gallons for fracking operations. I think you have to closely monitor the water tables to be sure they don't get depleted. As far as pollution to aquifers, I don't trust injection wells. These are old wells that have quit producing and now they are allowed to inject salt water and "other" chemicals back into them. I'm concerned that the linings on these wells may be suspect. I believe most of the damage to ground water in our area has been due to injection well problems rather than to the drilling and fracking operations.

 

[MMagis]

Good lease contracts have clauses regarding water, such as no drilling for water- they must truck in any water they need. Also, storage of clean water only, testing of water supply, particular details regarding the sleeve around the drill pipe through the water table. Again, this is why it’s critical to hire a lawyer who knows about these things and is very experienced in oil/gas.

 

[two_bit_score]

After you get a belly full of free advice, talk to a competent attorney.

And be sure he is competent to negotiate an og& mineral lease.

My attorney, who is certainly competent, advised me that the offer I got from the o& g company was " the going rate". And it was, up until the news got out that the area was " hot". The final payment for the bonus was thirty times more than the original and the lease terms were significantly changed from the company's "standard lease form".

Mineral leases are complicated and if you don't know what you are doing you will regret it later.

In Texas we have a very good organization for land and mineral owners. The Texas Land and Mineral Owners Assoc. is very much worth the cost of dues. They have good lease language that is available to members and associations with recognized o&g lawyers who specialize in representing land and mineral owners.

 

[two_bit_score]

Im a fellow central pa resident, and I am completely terrified about what this gas drilling is doing to our area. Not only does it make it impossible for us to purchase more land because nobody is selling, but there have been so many problems with wells and the ............

Im not an eco-nut by any means and I certainly am in the "drill baby drill crowd", but I am only for it if it can be done without damage to the environment. I dont think at this point it can be done without damage.

To each their own opinion I guess.

After reading that I get the impression you do not on the mineral rights to your land.

 

[two_bit_score]

For perspective, a well selling 30 mmcf of gas per day at $4.00 /mcf, is $120,000.00 per day gross revenue. Of course there are taxes and possibly other costs taken out of that amount, say 10%.

The formula to calculate royalties is simple math. (Your royalty fraction, say 3/16) times (the number of net mineral acres you own, say 40 acres) divided by (the gross acres in the unit or pool, say 600 acres).

A $1,350.00/per day royalty check, or $40,500.00 for the first month, can finance a lot of equipment. Many a farmer in Oklahoma and Texas has been able to afford to buy equipment because they had royalty income that the agricultural income from the land would not support. Of course, those are the farmers that didn't let some city slicker hornswogle them out of their mineral rights.

It's much more complicated than that. Key phrase is "other costs".

There are a lot of royalty calculators out there on the web but even the best are not entirely accurate because lease terms can vary so much.

The lease terms are key.

 

[tommu56]

were you at up there ?
I am near waterville 2500 an acre plus 15% no surface rights.

Best site for lease info in our area Natural Gas Forum For Landowners - Index.

 

[ericrm2005]

After reading that I get the impression you do not on the mineral rights to your land.

We do in fact own 100% of the mineral rights to our property.

 

[ericrm2005]

No offense, but you clearly have NO idea what you're talking about. Do a little research and get some understanding before giving "advice". I won't pretend to know much, but I know you're wrong about pretty much everything you wrote.

Well, no offense to you sir, but being from a neighboring county to the original poster I do believe I know the issues concerning natural gas drilling in our area much better than you would.

If you lived in this area, you would know about the many accidents and tainted wells that have been popping up around these wells.

In terms of being "wrong about everything I wrote"? I am not sure what you mean by this as most of what I wrote is my opinion on the gas drilling situation in my area.

If you are mad because I am "anti drilling", then I am sorry but you are wrong there. As I said in my post, I love exploiting this resource, I just know it hasnt been done safley in my area. Your area may be completely different, I have no idea and would not even comment on a situatin in your area.

 

[tommu56]

Well, no offense to you sir, but being from a neighboring county to the original poster I do believe I know the issues concerning natural gas drilling in our area much better than you would.

If you lived in this area, you would know about the many accidents and tainted wells that have been popping up around these wells.

In terms of being "wrong about everything I wrote"? I am not sure what you mean by this as most of what I wrote is my opinion on the gas drilling situation in my area.

If you are mad because I am "anti drilling", then I am sorry but you are wrong there. As I said in my post, I love exploiting this resource, I just know it hasn't been done safley in my area. Your area may be completely different, I have no idea and would not even comment on a situatin in your area.

I'm in the same boat with you but with you not too keen on it but with 30,000 acres state Forrest right next to me I figured do the best for myself now because they are drilling heavy (>50 wells) less than 10 miles away and pads are ready 2 miles away woth 6 wells on each pad with 3 more coming 1/4 mile away. I cant stop them with my puny tract so make the best you can for your self and protect your interests.

tom

 

[ericrm2005]

I'm in the same boat with you but with you not too keen on it but with 30,000 acres state Forrest right next to me I figured do the best for myself now because they are drilling heavy (>50 wells) less than 10 miles away and pads are ready 2 miles away woth 6 wells on each pad with 3 more coming 1/4 mile away. I cant stop them with my puny tract so make the best you can for your self and protect your interests.

tom

Thankfully they arent drilling near me yet, so I dont have to worry about it right now. I do love the wealth its bringing to this area, but I just want my property to be as pristine as it always has been. Our family values our land way more than any money we could possible gather from it.

 

[lockhaven]

I am in Haneyville, I also know that I cannot do anything to stop them. I do not trust the big oil companies, they apparently pulled the wool over the DCNR's eyes because of all the problems that are now popping up with dead streams,(this was on 16 news yesterday) and wells going bad. They are from Texas for the most part and I am no geologist but am pretty sure that what works in Texas may not work in the Alleghenys. I do not buy into the belief of all the jobs they are creating because after the wells are drilled the pipelines in place and the gas moving.. where are the jobs going to be with the streams dead and the ground water polluted and the forest filled with 5 acre pads. I would just as soon leave the gas where it is but if they are taking what is mine I want to be paid.

 

[MMagis]

In terms of being "wrong about everything I wrote"? I am not sure what you mean by this as most of what I wrote is my opinion on the gas drilling situation in my area.

Here's what I was referring to...

You will get paid IF their drill goes under any part of your land.

False

They will pay you for the gas they take out from under your land, even if you have no contract with them.

False

I would not sign a contract, as if you do it might be harder for you to sue the gas company not IF but WHEN your well is polluted.

False


With a little research, you'll see that many of the "tainted water wells" were tainted long before any drilling. Many of them were tainted by old mines. The incidents talked about are mostly exaggerated, though that's not to say it's all perfect. That's why the lease verbage is so important. I don't care if you're anti drilling or not, but you're "facts" were completely false.

 

[ericrm2005]

Here's what I was referring to...




False



False



False


With a little research, you'll see that many of the "tainted water wells" were tainted long before any drilling. Many of them were tainted by old mines. The incidents talked about are mostly exaggerated, though that's not to say it's all perfect. That's why the lease verbage is so important. I don't care if you're anti drilling or not, but you're "facts" were completely false.

Someone woke up on the wrong side of the bed.

Yes, many wells in this area were tained before, but if you followed the news in my area, you would understand that many of these wells are showing up with problems that were never there. Again, I do not believe you live in central PA, so I am not sure how you know all of the wells that are coming up with chemicals/gasses in my area were already that way. I honestly have no idea the history of wells in your area, and would not even comment.

Also, absolutely agree, they will pay you for gas they take from under your land. I should have stated it better. I said when the drill goes under your property, but absolutely, you will get paid for the gas they take. So we agree on that issue. If your going to argue with the exact way someone words something, than maybe you should go take a nap and come back when your in a better mood.

We also agree that the lease details are very important. They can vary widely over time and region. Any land owner considering leasing should speak with a lawyer and be aware of exactly what is in THEIR contract.

So were left with the fact that you think the wells here were tainted before, and I think some were and some werent. So my facts are absolutely not false as you say.

We simply dissagree that the wells were or werent tainted before the drilling, so before calling my facts false, please think about what you are saying, and check your own facts.

 

[MMagis]

I have no interest in arguing, just wanted to point out to everyone that your statements were not correct.
They don’t have to drill under your land for you to get royalties.
They will absolutely not get gas from under your land without a signed lease. The penalties are severe beyond belief.
It is absolutely false to say they WILL contaminate your well. It has happened, but rarely. They will also pay to drill a new one or fix the current. They have no choice

 

[ericrm2005]

I have no interest in arguing, just wanted to point out to everyone that your statements were not correct.
They don稚 have to drill under your land for you to get royalties.
They will absolutely not get gas from under your land without a signed lease. The penalties are severe beyond belief.
It is absolutely false to say they WILL contaminate your well. It has happened, but rarely. They will also pay to drill a new one or fix the current. They have no choice

I dont want to argue either, but our area has been experiencing problems with contaminated well water, and as you have stated you agree it has happened. Different geographical areas are different, and I do believe, as a previous post stated, that just because it is working and safe in other areas does not mean its safe in ours. Yes they will fix it, and we have seen many of the fixes. Months and months of bottled water, water buffalos with water trucked in.

The drilling issue is very divisive, and I do understand points on both sides of the issue, I just want it to be safe. Thats all.

 

[MMagis]

I do understand. But, I think it’s just as unfair to say all of them will be unfair and cause major issues as it is to say they’re all perfect. The lease terms should be drafted by professionals and the drillers must know what they can and can’t do, and must be legally held accountable. It can be done safely and the impact to the surrounding areas is extremely minimal. With all the notoriety these days, I think (hope) the bad drillers are getting weeded out. And these deep mineral wells are an entire different ball game than the normal Clinton wells and such. It takes a big company to be able to drill these wells, and most of them are publicly traded on the stock market. They simply can’t afford things going wrong.

 

[clemsonfor]

With that kind of money id love to have one on my land!

 

[greasemonkeyok]

... They will pay you for the gas they take out from under your land, even if you have no contract with them....

You might want to Google "the law of capture in Pennsylvania" and read a bit before you make such bold statements. The advice others have noted above about getting information from knowledgeable sources is good advice.

It is wise to be concerned about the environmental impact of drilling, but not wise to be reactionary. Identify the risks, assess them based on facts (as opposed to overgeneralized sensationalized news reports) and decide what is acceptable and what is not. For example, driving an automobile is dangerous (to life and limb and to the environment), but it is an acceptable risk to most folks.

 

[greasemonkeyok]

It's much more complicated than that. Key phrase is "other costs"....

Do you have a specific example where the severance taxes and "other costs" exceed 10% in your area? If so, then most certainly it is wise to consult a knowledgeable attorney to minimize your exposure to those costs.

This forum serves a good purpose in identifying some of the risks to the landowners. That doesn't mean that all of the information here is reliable for assessing the severity of those risks.

 

[Ken]

Do you have a specific example where the severance taxes and "other costs" exceed 10% in your area? If so, then most certainly it is wise to consult a knowledgeable attorney to minimize your exposure to those costs.

This forum serves a good purpose in identifying some of the risks to the landowners. That doesn't mean that all of the information here is reliable for assessing the severity of those risks.

After the what ever named gas co. sends you a Royality check on the stub is a list of expences and taxes. That the co. paid on production of natural gas then again your Royality check is listed in other income on line 20 of tax form. Consider the Fed. at 35% the State at 10% and the county at 8% also your appraisel on the farm has gone up to get more tax income end of year tax does allow a 15% severance allowance to the property .
I have been retired for 16 years and 4 years ago the gas company has been drilling in our section not on our property. in spite of the taxes and increased needs of the goverment for there constant need for more revenue . life is good just don't depend on the income to be here forever. (Can buy a new pick-up every month and hire a new driver for it.)
Just have to put up with constant trucks passing the drive either hauling gravel to new gas pads or water to new wells . or drill rigs in transit to new locations.