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Northeastern Landowners Get $165M For Natural Gas Rights

A coalition of landowners in one of the country’s emerging natural gas hot spots has reached an agreement to lease 30,000 acres to Fortuna Energy for natural gas drilling rights. The $165-million, five-year deal for Marcellus Shale drilling rights comes out

Natural Gas

A coalition of landowners in one of the country’s emerging natural gas hot spots has reached an agreement to lease 30,000 acres to Fortuna Energy for natural gas drilling rights. The $165-million, five-year deal for Marcellus Shale drilling rights comes out to $5,500 per acre, plus royalties.

The Friendsville Group is made up of 600 property owners in Susquehanna and Bradford counties in Pennsylvania, and in Broome County, New York. Individual owners will have the option to extend the lease for another three years, making it a “one-size-fits-all” deal, according to Pat Flaherty, who helped negotiate the deal.

Other perks to landowners were included in the deal, including approval of developmental plans and retaining rights to other minerals on the property.

“It’s by far the best offer we’ve seen,” said Larry Barrack, a Pennsylvania property owner who spoke with Gannett reporter George Basler.

Fortuna , a subsidiary of Calgary-based Talisman Energy, is one of North America’s largest independent producers with more than 22,000 oil and gas leases.

Landowners in Pennsylvania can expect payment within 90 days of signing the agreement, Fortuna officials said. Given the current moratorium on oil-and-gas drilling in New York, the Broome County leases — primarily in Binghamton and Vestal — will be structured differently, giving landowners $500 per acre when the lease is signed and the remaining $5,000 per acre once the moratorium is lifted. The New York Department of Environmental Conservation (DEC) plans to release results from an environmental impact report this fall.

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Posted in Energy, Eric OKeefe, Feature, Minerals, News Desk, Northeast, Regional News, Topics

One comment on “Northeastern Landowners Get $165M For Natural Gas Rights

  1. Anita Hehl says:

    Could you shed some light on how these folks managed to get so much revenue from Fortuna Energy. I have just been approched to lease my minerial rights in Louisiana. They are wanting to give me $2,257.50 for a 3 year lease on 15 acres with a royalty agreement of 1/5 royalty. The gentelman I have spoken with per phone seems very anxious for me to sign up. I wonder if this is the right way to go. Seems they are signing up a lot of folks down there. Is this a fair market price? I could use some expert advise here. Sincerely Anita

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