Experience selling Natural Gas rights on Raw Land?

[Robert Y.]

Does anyone have experience they can share selling natural gas drilling rights in the last five-ten years, e.g. during the somewhat similar Louisiana rush last decade?

Especially interested in:

a. formulas to determine whether we're receiving fair offers [are most contracts really set on a monthly basis royalty, rather than outright payment for drilling rights for the 20 year period - and is 20 years really the industry standard? ]

b. do drilling companies JV, i.e. we take lower upfront during the exploration stage, for a larger percentage later, or will pushing for that kill the deal?

c. if the drilling turns out not to produce the revenue anticipated, and the drilling company shuts down drilling, can the land be safely converted to residential development [land is an hour outside a top 10 fast growth area]?

Also recommendations for any reputable companies land owners have worked with, that behaved honorably after the leases were signed, would be appreciated.

Thanks
Robert

[Steve Babiak]

Marcellus Shale gas reserves is big news in PA. Here is a link where somebody is collecting the offers being received:
http://www.gomarcellusshale.com/page/marcellus-lease-offers

Here is an article naming the big players in buying natural gas rights:
http://www.philly.com/philly/business/87606177.html

Here is a story on attorneys and the PA Marcellus shale; near the end, there is some discussion of payment for the lease rights:
http://www.philly.com/philly/business/85751927.html

Story on PA bids being lower than elsewhere:
http://www.philly.com/philly/business/homepage/20100119_Pa__bids_for_shale-gas_land_lower_than_elsewhere.html