"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. 

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09bp5t05myjl3Permalink Reply by 09bp5t05myjl3 on October 13, 2011 at 6:57pm

why is the theme so predictable, Ricahrd says you don't need a group in fact it sounds like your better without a group "you have given up your right to choose that company"  and you look at the profile & SURPRISE they are landmen! that in itself goes to the need for landowner groups

 

here is Richard Jones's profile

What has been your experience in the Marcellus Shale?
3 years leasing in SW PA and Western Maryland, through drilling of exploratory wells.

 Richard who is the good O&G company you lease for?

Permalink Reply by Richard Jones on October 13, 2011 at 8:23pm

I wasn't aware that I was hiding anything from anyone.  What I do is right there in my profile.  If I come to you for a lease, Tom, I will be happy to tell you whom I represent.  Until then, this is supposed to be a discussion board.  You have not responded to anything I have said, you have simply attacked me for who I am and what I do.  That is the deadend of any discussion.  If you want to tell me where I am wrong in the advice I have given, I will be happy to discuss it with you.

09bp5t05myjl3Permalink Reply by 09bp5t05myjl3 on October 13, 2011 at 8:47pm

Richard I have not attacked you in any way, I Merely pointed out who you are & what your motive would be for telling people thay are better off without a group. Stating they lose the ability to select the company they lease with,

  I do disagree with you, We both know that no matter who we sign that lease with is no guarantee they are going to be drilling, the flippers present themselves as drillers to confuse & then sell the lease to another company at a profit & that company might even sell again.

  Even if I sign with your so called Good drilling company the odds are that they will sell or trade my lease to another driller so I will never know who or even if I will be drilled by. and without the Group you know the O&G companies are not going to agree to a landowner friendly lease one on one,

There is power in Numbers and you know it. I'm sure you woud rather deal with individuals that are uneducated & don't have the supprt of neighbors & other landowners that can be convinced to sign now or risk getting nothing & many being signed for $50 to $500 per acre in the last year when all the O&G companies knew the real value of the Marcellus/Utica since at least 2004 and I'm sure without the landowner groups that would have continued.

If Your leasing for that good Oil company then tell us who it is so we "can do our little research on the internet" maybe our landgroup would like to negotiate a deal.

Permalink Reply by Mickgyver on October 13, 2011 at 10:10pm

Yes it is a shame that anyone would think it is better to be alone when a school of Piranha come  a calling  .  I will change my tune when I meet a landman that is decent and treats you fairly.

But that has not happened to me yet . I was lied to by the first 3 . Then with  the last landman I dealt with was a pure a #1 smart A**, 

When I asked about how the EagleFord compared to our Utica since Cheasapeke said that the Utica is economically superior , my landman said oh no the EagleFord is just a gas play no liquids. 

When I asked him about the lease price in Harrison County he told me , what do you care ? why does it matter? I am offering you this price now,

When asked about drilling unit size and possibly being blocked in with the road to a well , he said why are you asking so many hypothetical questions.going on to say I just don't know why so many landowners ask so many questions , the oil business has been here for years .

I said you may have dealt with it for a few years but most of us here are more familiar with coal .

Then I was told that it did not matter If I leased wih him or not , He said I get paid the same every day no matter what .

Permalink Reply by time will tell on October 13, 2011 at 9:14pm
I thought this site was for landowners ???
Permalink Reply by time will tell on October 13, 2011 at 7:23pm
Best of luck Richard .
Permalink Reply by Finnbear on October 13, 2011 at 10:03pm
That's a bunch of BS. An individual landowner will not get the concessions that a large group can. You give up the right to choose the company any time you sign an assignable lease and most are these days. You may sign with XYZ company but that is NO guarantee that they will the company who drills or the company who produces the well.
Permalink Reply by Brandon Nuttall on October 13, 2011 at 1:38pm
Be aware that the v alue of unmined coal in the ground is substantially different from mined and (potentially) washed coal delivered to a consumer.
Permalink Reply by jack brunner on October 14, 2011 at 12:36pm

Talking about land groups.......does anyone know what happened to the Friendsville group?

Permalink Reply by Sue E. Timmons on October 16, 2011 at 2:27pm
Read this to find out who is trying to turn your chance at financial prosperity into a "fizzle."  http://www.cantonrep.com/newsnow/x897729769/Ohio-Democrats-continue...
Permalink Reply by Ron Eiselstein on October 19, 2011 at 11:02pm
Just got a late call tonite from a partime judge and lawyer, in Poland , Ohio...... he just got a notice direct from Hillcorp. asking to lease,  with no mention of CoXprise, Jim, what is happening?
Permalink Reply by Ron Eiselstein on October 24, 2011 at 12:03am

After 6,100 visits by the intelligent people of GoMarcellusshale.com, I think we can now summarize our views on this subject and the evolution thereof.... here in the ground zero of the Utica Eastern Ohio.

Landgrouping is a good thing and is needed provided it is landowner driven with the compensated services of professionals.  Us landowners must always lead the charge in all decision making.  Education and business thought is vital in understanding how best to play in this new found blessing we all find ourselves in.  As stated we  must understand the market, know the players, place emphasis on actual production and data.  Research our legal documents and recorded instruments of past oil and gas transactions.  Evolve and innovate in regards to new technology and advance legal agreements.  And lastly, unite ourselves not necessarily in organized groups but in educated communities and remember, we have something to sell and have a responsibility to our country to assist in the production of our own energy, God bless.

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