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.
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.
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...
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 !
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.