How much US gas companies pay for land

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How much US gas companies pay for land

Postby HVPA_research » Mon Jul 06, 2009 11:47 pm

6 July, 2009. Hess Corp. has its eyes on gas-rich Broome land
Late last month, more than 700 landowners in Binghamton and Conklin agreed to an offer for $66 million and 20 percent royalties to open their land to crews from the multinational energy firm for 7 1/2 years.

Last summer, competition for leasing land was fierce after XTO Energy closed a deal with Deposit-area landowners for
$2,411 per acre - in an up-front lump sum - and 15 percent royalties.

That roughly corresponds on average to $US66,000,000 / 700 landowners = $US94,286 per landowner up-front. At $US2,411 per acre the average land area leased by each landowner would be only 39.11 acres. Looks like small holding farms. The area discussed her is in Marcellus Shale and in New York state on the East Coast.
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