Don't disagree with most of your post, but did want to correct you in that the 5% charged by Co-ex on the bonus payment is not taxable income to you. Their $ is taken out before the check is cut so you do not…"
"It would seem that they have gone past the allotted time and you might be able to get out of the lease. Keep in mind that doing so would mean it may be many more months before you get paid from any company. And you may not get the same lease…"
"Jim, wanted to get your thoughts on options I may have etc concerning my lease. I signed in wave 1 of the Mt Jackson group with Hilcorp. My lease states that payment will be within 90 days of signing (not business days), with 20 extra days allowed…"
"Income is applied to your earnings according to the date the check is cut, not the date you make the deposit. If they cut the check in December of 2011, you must report it as income in the year 2011 regardless of when you make the deposit."
How would you go about requesting a 50/50 split in December/January? I was not aware this was an option. I wouldn't even know who to contact. Assuming I get a check in December, I would much rather it be half and the…"
Are you signed with Hilcorp? I signed on the final day, which means my 90 days would end on 12/9/11. I really don't see anything binding in the contract that would allow you or others to terminate the lease agreement…"
Am I reading this correctly that you did indeed receive & deposit your bonus check from Hilcorp Mt Jackson group)? I have been wondering if people are receiving their checks. Nobody I know including myself, has yet. Their original claim of…"
I don't know how to send private messages through this site. If you give me your email address, I'll forward Jim's response to my email. He cleared it up for me, as it was more of a misunderstanding of…"
"Thanks Jim. I totally understand CoX interest in auditing the books for those that they get a % of royalties from, but I was in the initial group. Does that mean that I will not fall under this protection (I only owe a % of my bonus…"
Thought I read on here that you were affiliated with CoX. As a member who signed the lease with Hilcorp, I can attest that most of what you have stated is what was in our lease. I would have to go back and read thoroghly, but I…"
The Hilcorp offer, through Co-exprise was basically $3000/acre and 17% royalties from the gross without deduction. The language of the lease is very pro-landowner, in otherwords it protects the land owner's rights better than…"
"John and Jim,
I too would like to know what the offer Hilcorp made you consisted of in terms of bonus, royalty, and language. Jim, could you post the differences from the co-exprise lease once you have examined them? "
It would seem that they have gone past the allotted time and you might be able to get out of the lease. Keep in mind that doing so would mean it may be many more months before you get paid from any company. And you may not get the same lease with all its landowner protections. I'm not sure of the procedure to follow to get out of it,,,you can try just demanding they release you or you might have to use an attorney. Don't know anyone that has done that so I don't know how best to proceed.
The marketing agreement with Co-X gives them exclusive marketing rights for your O & G rights. That means they are permitted to collect their fee no matter who you sign with within the one year term of the agreement.
Hilcorp is still offering the same $3000/17% but will look at your parcel and consider matching any higher offers you may have. I think Shell has been offering $3250/acre.
I don't know how many acres you have but I think I would wait another couple of weeks if I were you. The hassles of canceling and starting over just aren't worth the risk, IMO. Especially if you end getting a lease thats not as landowner friendly.
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]