Bryant wrote:
From what I gather, even if 0.1% of your property is within a spacing unit that has an active well, your entire property is considered to be in a gas producing process, which in turn will draw out your lease and lock up your land.

I have heard quite a few horror stories about this happening to people. For instance, one person had less than 1% in an active spacing unit and was receiving checks every couple of months for cents on the dollar!

Is there a coalition that is actively seeking participants to negotiate our rights for us as a group? I have had offers from several companies and am holding out. My second offer I received the old fashioned way. I called the company and told them what I was looking for. I had a call back the same day with an offer. My offers are as high as 2500 with 1/8th% royalty. I have 107 acres in Cortland County. How do I sign up for a coalition, are coalitions getting better prices?

Donna

County Line Landowner's Coalition
countylinecoalition.com/index.html

This coalition includes part of Cortland County, and also has a list of other coalitions. Your best bet would be to contact them. (Our property is within their area too!)

I would always suggest signing a lease with your coalition. These coalitions should have well educated lawyers representing them (County Line's Lawyer is very good). Most coalitions have developed a 30-40 page lease compared to a 3-10 page lease presented to you by a gas man. The coalition's lease is going to protect your property, protect your rights, and make sure the gas company plays fair.

Gas companies are notorious for hiding things in legal terms and fine print, or leaving things out on purpose to take advantage of the landowners.

Basically if you sign the lease presented to you by the gas company without making major changes they are going to walk all over you.

Also try Cortland, Tioga Gas Lease Organization, Central New York Landowners Coalition, or Tompkins County Landowners Coalition. All good choices who might see your land as a good fit with theirs. Sorry if I overlooked any coalition, and if I did it is not a slight to the coalition.

Please do not try to try to work with a gas company one on one. No single landonwer has the skills, knowlegde, or expertise to deal with companies that have been doing this for generations and know all the tricks to use to your disadvantage!

1/8 royalty is the lowest of all low ball offers by the way, and upfront bonus values are less important than a good royalty rate (18-25% with no deductions). Also gas company leases will not have any of the protections (legal, financial, and environmental) that ar important to leasing responsibly. Coalitions expect to be able to leverage the combined acreage of the landowners to obtain better protections and compensations than any one landowner could ever hope to achieve on their own.