How did the Monroe County group negotiate the fee from 4% to 2.75%? Lensman/FOFM charged the Belmont County group 4% and it was non-negotiable.
What happened to the 4.5% of the bonus fee as reported above by a lawyer from Bricker & Eckler? It seems odd that Garrison was getting 2%, Bricker & Eckler 2% and Dr. Chase 0.5% and the members of the group negotiated that down to 2.25% total over a 5 day period (Matt Warnock's post is dated 10-16-2011). The going rate was between 4% (Lensman) and 5% (KWGD).
If the group negotiated it down, good for them. Lensman charged the Belmont County group 4%, and somehow Monroe's group is only charged 2.75%?
On one hand, you have probably the most knowledgeable local man in the industry right here in southeast Ohio. On the other, he's a professor that does research in petroleum engineering at Marietta College. The main donors for this research are, as you can guess, big oil and gas companies like Exxon, Chevron, etc. At least that's how it works at most other colleges for the graduate programs. This would present a clear conflict but the landowners undoubtedly would benefit from Dr. Chase's input for the group. Tough one. I'd probably listen to what the guy has to say and how he answers the landowner friendly lease questions. Landowners really need to educate themselves before signing leases. Then the group members can decide for themselves. Good Luck.