Lease & Royalty Payments

Energy Companies | Exxon Mobil | Lease & Royalty Payments | Monroe County | Ohio | XTO

Correction: Exxon Buys 25K Acres of Utica Shale Leases in OH
January 11, 2012January 11, 2012

Two days ago MDN reported, based on copies of paperwork filed with Monroe County, Ohio, that Exxon Mobil via its subsidiary XTO Energy had acquired 13,200 acres of Utica Shale gas leases from Beck Energy (see this MDN story). It turns out there’s more to the story.

MDN received a copy of an additional purchase agreement between Beck and Exxon for another 7,627 acres, for a total deal between the two companies of 20,827 acres of leases in Monroe County. The new/second agreement appears to be property held by Beck with delayed rental payments—that is, property where there is currently no active drilling.

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Energy Companies | Exxon Mobil | Lease & Royalty Payments | Monroe County | Ohio | Utica Shale | XTO

Exxon Buys 13,200 Acres of Utica Shale Leases in Ohio
January 9, 2012January 9, 2012

Exxon Mobil, through it’s subsidiary XTO Energy, recently acquired just over 13,200 acres of Utica Shale leases from Beck Energy Corp. in Monroe County, Ohio. A copy of the Bill of Sale, dated Dec. 20, 2011, is embedded below, containing a list of all the parcels in the transaction. Terms of the purchase are not disclosed in the document. Neither Exxon Mobil nor Beck Energy have disclosed the price and terms of the deal.

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Energy Companies | Lease & Royalty Payments | New York | Norse Energy | Statewide NY

Norse Energy Sells Some of Its NY Acreage/Interests
January 3, 2012January 3, 2012

Norwegian gas driller Norse Energy has sold off some of its leased acreage in Central New York State, along with a slice of future royalties in acreage for which it retains control. The complicated deal to an unnamed buyer for $26.7 million is to sell all interests in 22,700 acres, and various rates of royalty interests on other leases that Norse retains (see the press release below).

Norse will retain control of 160,000 leased acres in New York, of which 110,000 acres are located in the Marcellus and Utica Shale play areas, in the hope that New York will soon release final drilling rules that will allow it to tap into shale gas in the state.

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Butler County | Lease & Royalty Payments | Pennsylvania

School District Near Pittsburgh Receives $628K Lease Payment
December 23, 2011December 23, 2011

The South Butler School District (Butler County, PA) has just finalized a lease agreement with XTO Energy to lease 167 acres of school-owned land for $628,000, or $3,760 per acre, plus an 18 percent royalty on any gas produced. The deal was approved by the school board back in September (see this MDN story).

The final terms of the deal just adopted have been changed since September. Previously, the district was promised $3,750 per acre that would be paid “should natural gas be extracted.” Under terms of the final agreement, the district has already received a $628,000 payment, $3,760 per acre, up front.

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Lease & Royalty Payments | Pennsylvania | Statewide PA

NARO Says Marcellus Land Grab in PA is Over for Landowners
December 19, 2011December 19, 2011

In a wide-ranging article talking about the natural gas industry in Pennsylvania, and how it is maturing, we get this bit about landowners’ prospects in signing new lease deals from a National Association of Royalty Owners (NARO) rep:

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Energy Companies | Lease & Royalty Payments | Pennsylvania | Range Resources Corp | Washington County

Range Resources Reduces Lease Offer to North Strabane Twp
December 14, 2011December 14, 2011

North Strabane Township (Washington County), PA reports that Range Resources has lowered its offer to lease 141 acres of township-owned land.

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Belmont County | Lease & Royalty Payments | Ohio | Utica Shale

OH Landowner Group Seeks Driller for 45K Utica Shale Acres
November 28, 2011November 28, 2011

The Smith-Goshen Landowners Group in Belmont County, OH currently has 600 members and 45,000 acres of Utica Shale land available for lease. But they’re taking it slow and looking for a lease that will guarantee the safety of their farms and water supplies, according to Larry Cain, chairman of the group. They’re also looking for an even better deal than other landowners in Belmont County recently got from XTO Energy (a subsidiary of Exxon Mobil).

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Landowner Coalition News | Lease & Royalty Payments | Ohio | Trumbull County

Huge OH Landowner Group Close to a Lease Deal for 80K Acres
November 20, 2011November 20, 2011

The Associated Landowners of the Ohio Valley (ALOV) landowner group in eastern Ohio met on Saturday for an update on negotiations with energy companies to lease what may be the largest tract of land offered by a single landowner group in the entire Marcellus and Utica Shale plays. A deal is not yet done, but the president of ALOV, Robert Rea, says they may well have a deal done in the next several weeks.

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Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

Companies Target OH Landowners to Buy Royalty Rights
November 7, 2011November 7, 2011

A few weeks ago, MDN called attention to a new trend in the Marcellus and Utica Shale region—companies who want to buy landowners’ rights to future royalties (see this MDN story). It seems to be happening mostly in Ohio at the moment. These companies are offering to purchase a landowner’s potential future royalties for gas wells drilled on their property, paying them an up-front, one-time payment now. Think of those commercials you’ve heard where companies offer to pay lottery winners a lump sum now for the future long-term payouts, or settlements from a lawsuit with payments that stretch over years. That’s essentially what these companies are doing for landowners with leases in the Marcellus and Utica Shales.

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Chesapeake Energy | Energy Companies | EnerVest | Lease & Royalty Payments | Ohio | Statewide OH

Mystery Company Invests $2.14B in Chesapeake Utica Shale JV
November 4, 2011November 4, 2011

The Utica Shale in eastern Ohio, and Chesapeake Energy’s discovery that it contains oil and wet gas in addition to methane, is paying off big-time for the company. Yesterday, Chesapeake announced a major cash infusion from a new joint venture with a mystery/unnamed “international major energy company” to the tune of $2.14 billion. Some $640 million of that will be paid when the deal officially closes, and the balance of $1.5 billion will be paid by the end of 2014.

A third company in the joint venture is EnerVest. The joint venture values the land leased by Chesapeake and EnerVest at $15,000 per net acre. The previous highest deal for Utica Shale leases was Hess—for $8,000 per net acre. The overall deal between Chesapeake, EnerVest and the unnamed company is a bit complicated (see the press release below), but the gist of the matter is that Chesapeake will get enough money to fully fund their Utica Shale drilling program in Ohio, and the overall value of the joint venture means Chesapeake will eventually receive $3.4 billion.

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Broome County | Energy Companies | Inflection Energy | Lease & Royalty Payments | New York

Broome County NY Landowners Receive Money to Stay in Lease
November 4, 2011November 4, 2011

At least one energy firm has voted with its pocketbook that drilling will come, eventually, to New York State. Inflection Energy has just paid landowners in the Town of Maine (Broome County), NY $1,000 per acre to not bail out of the previous deal they signed.

In 2010, Inflection signed a deal that Maine landowners would receive a $6,000 per acre signing bonus over eight years plus 20 percent royalties. The initial payment was $1,000 per acre, the rest due after New York starts issuing permits for drilling. Problem is, those permits have not been issued and under the terms of the deal, landowners would have the right to vacate their leases and find a better deal later. So to keep them in the deal until permits are finally forthcoming, Inflection paid an additional $1,000 per acre (one-time payout) stipulating the landowners will not cancel their leases.

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Carroll County | Lease & Royalty Payments | Ohio | Utica Shale

Companies Offer to Buy Royalty Rights from Ohio Landowners
October 24, 2011October 24, 2011

Carroll County, Ohio is in the midst of a shale gas whirlwind. Signing bonus offers are being made to landowners in the $3,000-$5,000 range. But that’s not all. For landowners who previously signed, several years ago, some companies are offering to purchase royalty rights from landowners, even for wells that are not drilled and may never be drilled. Here’s the story from one such landowner:

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Indiana County | Lease & Royalty Payments | Pennsylvania

Banks Now Getting into Gas Advice Business
October 13, 2011October 13, 2011

Some banks are getting into the business of advising their customers, like farmers, on what kind of gas lease to sign when energy companies come knocking. The wealth management divisions of banks are branching out into what has been traditionally the turf of lawyers. One such bank is S&T Bancorp, based in Indiana, PA.

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Energy Companies | Lease & Royalty Payments | Pennsylvania | Range Resources Corp | Washington County

Canon-McMillan School Signs Gas Lease with Range Resources
October 3, 2011October 3, 2011

A school district in Washington County, PA (in western PA) just signed a five-year lease for school district property with Range Resources:

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Belmont County | Energy Companies | Exxon Mobil | Lease & Royalty Payments | Ohio

Belmont County, OH Landowners Sign Utica Shale Leases
September 19, 2011September 19, 2011

A number of landowners from Belmont County, Ohio made the trip to Wheeling, WV last week to sign leases to allow drilling in the Utica Shale on their property. The leases were signed with XTO Energy, now a subsidiary of Exxon Mobil. The price landowners got for Utica leases rivals the highest prices MDN has heard of for any Marcellus Shale lease, in no small part because of Chesapeake Energy’s recent discovery of natural gas liquids and even oil in the Utica Shale in Ohio.

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Butler County | Energy Companies | Exxon Mobil | Lease & Royalty Payments | Pennsylvania

South Butler School Signs Lease with Exxon Mobil Phillips
September 15, 2011September 15, 2011

The South Butler County School District (Butler County, PA) school board, after a year and a half of meetings and research, has voted to lease school district land for Marcellus Shale gas drilling. The lease is with Phillips Resources, recently bought by and now part of Exxon Mobil, and includes some interesting provisions, including an extra fee per well drilled, and an allowance for pooling, but not forced pooling.

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