"Why Land Groups Fizzle Out"

In the beginning God created a Play, on the first day the oil company adept at leasing swooped in.  On the second day land groups formed and united the earth with great lawyers spearheading the crusade.  Oil companies enticed with hundreds and the thousands, lawyers told the flock this is good, let us rest.  Then the rigs moved in and substantiated the gold and more giants moved in.

 

Alas!  production revealed , bonuses corrected themselves and hundreds of earth owners were left wondering why they took the first offers.  "We were in a landgroup and they told us this is the best we could get." 

 

I have nothing against Landgroups and I have nothing against any property owner who wishes to lease at anytime.  What I do have a problem with is when landowners regret that they prematurely leased.  Well, what do we expect when we were led by non-business people, in fact leaders with no O&G experience at all.  Most landowners have an inate logic of knowing how to deal with their property, I believe it was the dazzle of oil which caused many to not look into themselves on when to lease.  Most property owners know value and know when to sell their corn.  As a business landowner, I have not leased and am watching the nearest wells and production.  It is basically real estate, location, location, location.  I will not regret what I lease for, even it goes up, it is not being greedy that drives me, I just do not want to be had.  The Utica's sweet spot is finite, and they will eventually need everything, I am looking towards a well, production, not swapping paper. 

Views: 10486

▶ Reply to This

Replies to This Discussion

Permalink Reply by Robin Fehrenbach Scala on October 11, 2011 at 3:20pm

Most important thing in the world... as Lynn says, "the LINGO must be in the lease..."

 

Land groups don't need a fancy voting structure, or a group attorney, or a company who expects X amount of the bonus and royalties, etc.

 

Land groups just need to be a contiguous group of landowners who agree on the same terms, stick together for the duration, have a PROTECTIVE lease agreement they will sign, are are willing to be happy with what they have signed afterward. Don't need a lot of bells and expensive whistles to be a group, for sure.

Permalink Reply by Mickgyver on October 13, 2011 at 6:31pm
Hey dude Ill call you after bit I need to ask you something else , got to do a little shoppin for mama , be back soon , If she aint happy well you know the rest  Mick
Permalink Reply by Robin Fehrenbach Scala on October 13, 2011 at 10:12pm

hbo, guess you didn't read my other post first, or at all.

I agree, of course the best weapon is a strong lease. It is the ONLY weapon.

Also,  the post above was the second in two I put in this section. THe first post says that EACH landowner needs legal advice...from an EXPERIENCED O&G lawyer.

 

Signing anything without profession advice is not just foolish, it's downright idiotic. By now we have all heard about the people who signed the first lease they saw...

Permalink Reply by time will tell on October 13, 2011 at 11:24pm

Sorry if I took you wrong please accept my apology , I really got burned big time and I don't want anyone else to have to go threw that .

Please take my advice and try to find an attorney that represents landowners !

Permalink Reply by Mickgyver on October 11, 2011 at 9:26pm
This makes a lot of sense Lynn  I can't hardly commit my land to anyone for a 5 and 5 deal , Shoot that is just a little less than  half as long as my wife had to put up with me . If I was useless for 10 years she would have given  up on me too. But  if I brought a few hundred thousand with me it would make it a little more tolerable .like say the 3 years you spoke of . Best Wishes
Permalink Reply by Mickgyver on October 12, 2011 at 10:31pm
Hello just for information purposes did your family hold on to the property your forefathers were so proud to hold on to because they really knew how valuable the coal rights truly were . And if they did ,how well did you do when you finally sold out for development . I ask because I am in Belmont County and most #8 coal was leased here for years . But I happen to own my deep # 8 coal yet and the Murray mine is headed my general direction. thank you in advance if you could tell me the actual coal tonnage value today , Good luck all
Permalink Reply by Sue E. Timmons on October 13, 2011 at 12:52pm
Mickgyver, am not sure if you are talking to me or not but I think I'm the only one talking about the family holding onto mineral rights.  Yes, I think my grandfather & father were quite aware of how valuable the mineral rights were.  Otherwise, they would have let them go with the surface.   The surface coal was stripped out all around us in the 1950's but my family was not interested in raping the land with a big shovel.  They were repeatedly told there is deep coal under the property but I have no idea about its value today.  I'd check the internet for today's coal tonnage value. 
Permalink Reply by Mickgyver on October 13, 2011 at 11:20pm
ok I was wondering what the going rate was and if you ever got any good for yourselves since your folks saved them for so long
Permalink Reply by Sue E. Timmons on October 14, 2011 at 11:19am

My family didn't sell any coal but I just leased the gas and oil last Sat w/ KWGD.  I think it was a fair price, as the price is going right now, and a good land lease for the surface owner.  Just wish the forefathers were around to see the benefits of their sacrificing the quick buck and keeping the minerals over the years. 

Permalink Reply by AT on October 15, 2011 at 9:34am
Sue, Whereabouts is your land located in Harrison County?
Permalink Reply by Sue E. Timmons on October 15, 2011 at 9:45am
Short Creek Twp.  Technically, it's not my land anymore.  I just have the minerals but I think it's one of the few farms in that area left untouched by strip mining.  I remember what most of the surrounding land was like before it was stripped and it's sad to see what that area looks like today.
Permalink Reply by AT on October 15, 2011 at 9:48am
Green Twp. here.

RSS

1 2
+ Add a Discussion + Add a Blog
+ Add a Photo + Add a Video

Local Groups




Stay Connected
Like Us

Follow Us

Subscribe

Join our lists

Top Content on GMS 

1 Have you received an offer to buy your minerals? What State/County/Township are you in?

Have you received an offer to buy your minerals? What State/County/Township are you in?
2 Ohio's Utica shale is shaping up as a gas-rich, not oil-rich play

Ohio's Utica shale is shaping up as a gas-rich, not oil-rich play
3 George Mitchell: Hydraulic Fracturing Pioneer Turns 94...wish him well on GMS

George Mitchell: Hydraulic Fracturing Pioneer Turns 94...wish him well on GMS
4 Back From Top Secret Mission

Back From Top Secret Mission
5 So, is that it? Are we done?

So, is that it? Are we done?
6 determining a unit

determining a unit
7 DRILLING damaged water supplies in PA ...

DRILLING damaged water supplies in PA ...
8 ODNR Projections For Utica Shale Future Production

ODNR Projections For Utica Shale Future Production
9 Water Line

Water Line
10 March prod, May Checks, Chesapeake SE Brad- $3.43-3.48 weak vs the H-hub avg for March. NT

March prod, May Checks, Chesapeake SE Brad- $3.43-3.48 weak vs the H-hub avg for March. NT

advertisements