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GLENVILLE MAN SELLS GAS RIGHTS TO CHESAPEAKE FOR $22 MILLION - Royalty Rights Breaking 18.75% |
| (09/07/2010) |
While development of Marcellus Shale is By Bob Weaver While many West Virginia royalty holders sell their Marcellus Shale rights for a few dollars, and others think they've done well for a thousand, a Glenville man says he's quite happy over a $22 million deal for his oil and gas rights in Wetzel County. Ed Broome knows a lot about West Virginia's oil and natural gas industries, being in the field for nearly 55 years. When Chesapeake Energy offered Broome $22 million for his 22,000 acres in Wetzel County, he figured it would be a good move. "I didn't pay anywhere near that much for it," the Glenville, W.Va. man told a Wheeling newspaper. Though declining to say how much he paid for the land in the late-1990s, Broome said, "I hope I am making out on it." Oklahoma City-based Chesapeake Energy, parent company of local operator Chesapeake Appalachia, has been leasing land for Marcellus Shale natural gas development. The firm has been offering payments as high as the $3,600 per acre. Despite age-old traditions in rural West Virginia, some of the royalties are now being set from 12.5 percent to 18.75 percent. Broome said Chesapeake purchased the developed land, as well as completely undeveloped property, that he owned. "Partial interest, full interest, developed, undeveloped - they bought it all," he said. Broome noted that his company, Ed Broome Inc., maintains an oil and gas business, as he still owns more property around the state. Chesapeake spokeswoman Stacey Brodak said, "Chesapeake Energy does not disclose the details of our negotiations with any landowners regarding the leasing of minerals or our operations."
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