In the beginning of this great Utica play on GMS archives, landowners can read in real time the evolution of the play up to the minute today, this is phenomenal and most likely unprecedented. The lack of knowledge and experience in a play most likely damaged landowners and yet created immediate wealth for many.
This writer who ran a sleepy land mangement company in Ohio, constantly provided insight, knowledge and understanding on GMS in order for all landowners to grasp the industry that required for their survival the minerals owned by each and every landowner in ther Utica shale.
In the beginning, another phenomenon which sprang up immediately was the massive landgroups and this vehicle for many seemed to be the organization to protect, organize and lead the landowners. Rather than revisit the enromous amount of information relative to landgroups, I leave it to the reader to gain this knowledge on GMS.
What needs to be said and what has been needed from the beginning is Land Management and following is why many landowners have made serious mistakes which many times unfortunately are permanent:
1. Land management is a team of qualified professionals with experience individuals working strictly in behalf of the landowner.
2. Landowners require assistance from the beginning of a play and for the life of the industry in a play.
3. Pooling resources (legal,engineering, monitoring, accounting, research) is economical and affordable allowing a landowner to continue their normal lives.
4. Basically a land management group is identical to property management in real estate however specialized. Sadly, land management is rare in this play.
This is an opener and is meant to further the debate and education of us landowners as we continue down this journey. And, I strongly believe this is needed more than ever today.
I beleive past landgroups will be investigated on how they represented landowners.
They should be investigated. What really transpired was these large land owner groups replaced the Brokers that o&g companies usually hire to acquire leases.
In the past the o&g companies would hire Brokers to put land men in the field to acquire leases, the Brokers were paid for their service. Now comes the large for profit land owner group they tell the o&g company ".... if you deal with us you don't have to pay us... we will get the land owners to pay us..." So was born the relationship between the o&g companies and for profit land groups. The o&g companies saved millions in land acquisition costs the Brokers made millionsand the land owners paid the bill through fees to the Brokers. All the while the Brokers convinced the land owners that they got a good deal. But as usual the land owner got screwed.
I hope people like Jim and Janice sleep well with their ill gotten gains. I couldn't live with myself.
FFF, Do you have any HBP lease samples available that you could send me? Thanks, Harry