Misleading Shell landman

Had a Shell landman stop by the house the other day. One of the tricks he tried was to flip open his folder and show me what he said was a check for the full amount, and then quickly close the folder.  I asked him to re-open the folder and when he did, I saw it wasn't a check but a bank draft. Big difference. A draft is more of a promissory note saying that they will release the funds at some promised point...like after the title work is done after 90 working days. And if they don't release the money, it can be quite a legal fight.

When I said "Thats not a check, its a bank draft" he said "Yes but you can take it straight to the bank" again implying that it could be cashed immediately. When I told him that I cannot cash it until the funds were released many months later, he changed the subject.

I had met with a bank's financial adviser and he told me that they had an elderly couple come with such a draft and told him they had just ordered a new car, thinking they could just deposit the draft like a check since the landman had called it a check. They had to call the dealer and cancelled the order.

Be very careful in dealing with these landmen.  You have to parse everything they say.  After meeting this guy, my local politicians are looking much better.

Views: 6347

▶ Reply to This

Replies to This Discussion

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on October 26, 2011 at 2:47pm

There are still a few honest men left. I remember sea hunt too but barely. Carried my hot potato in a "Bonanza" lunch box with Green Hornet stickers inside the lid! Ahhhhh......The Good Old Days!

Permalink Reply by Gunner Ostergard on October 27, 2011 at 1:04am
Thank you Jim,  good information to know.
3uq96odaochmjPermalink Reply by 3uq96odaochmj on October 27, 2011 at 5:09am
And why is Shell soooo interested in the "shallow" oil and gas??????  They haven't drilled a well in PA since the early 1960's and back then they said there was nothing here.  Here's what I think.............they damn well know that they will never be able to drill a well within 5 years, let alone in 10 years; so since their leases call for unitization they will just unitize and they themselves (or farm-out well locations to the traditional shallow well operators here in PA) to hold the entire lease.  Lessors in a 640 acre unit will have one shallow well drilled holding the entire thing - and each lessee will receive a monthly royalty check in the amount of a few cents.  Unethical, disingenuous, sneeky, sly you may say?  But, according to the lease everything that they did was legal.
Permalink Reply by SBRW on October 27, 2011 at 6:09am

Makes sense on their part unfortunately if they are able to so.  Saves them from paying out if the lease has a right to renew?  I heard their lease is a 5yr plus another 5 for the same amount - this would save them a bunch of money.  I don't agree with it either as a land owner but from a business standpoint I can see them doing just as you said.  Are they able to tie up 640acres with a shallow well? 

     They won't/wouldn't be able to do anything if everyone (all land owners) worked together but we know that will never happen.  Look at where the country is heading as more rights are being taken every day all to justify ones political and or regulatory job.  Tolal BS but thats another topic for a different forum.   

Permalink Reply by Brian V. on October 27, 2011 at 7:47am
This topic has been quite common for years now. The big difference now-a-days is the $ now involved. People have been signing leases for generations and usually never seen any production. Everything has changed now that they are actually drilling and producing in this region. I remember my dad dealing with multiple landmen when I was a kid. I never gave it much thought until the last few years. Over the past year I've seen two different tv shows that had Landman stop at the door to discusss a lease. I laughed my back side off at the first I noticed last year. It was the Munsters. The Landman showed up at the door with a check and a lease for Grampa munster. What followed was hilarious. The second was in the most recent season of Trueblood on HBO. The show is set in Louisiana and the interaction was pretty much standard for a landman. If you can find these shows it is funny to watch given what we deal with nowadays.
Permalink Reply by Finnbear on October 27, 2011 at 5:37pm
Isn't using misleading and landman in the same thought redundant? :-)
Permalink Reply by Brett R Oxley on October 28, 2011 at 3:46am
Just like lawyers and politicians? :)
Permalink Reply by George Brown on October 28, 2011 at 2:00pm
Not quite, Brett.  At the end of the day, the landman can't force you to sign.  Politicians (i.e. Gov't), on the other hand, can garnish your wages, take your house via eminent domain, or throw you in jail! I'd much rather live in a world full of landmen.
Permalink Reply by Brett R Oxley on October 31, 2011 at 1:14am

Actually, the lawyer can force you to sign, if you are presented with a situation that damns one either way they go, and we are forced to take the lesser of two presented evils.

 

The politicians write the laws they way they are paid to by their "lobbyists". The landmem are "lobbyists", or the people they work for are. IE;. landmen are the puppetmasters of the politicians, so yes thay are one and the  same.

Permalink Reply by George Brown on October 31, 2011 at 2:14am
Sorry, I disagree.
Permalink Reply by Finnbear on October 31, 2011 at 3:23am

Getting back to the spirit of this thread - no landman can make you sign a lease.

You don't have to lease your land. You can't show me anyone in OH who signed their lease at the barrel of a gun.

Permalink Reply by George Brown on October 31, 2011 at 4:22am
Exactly!

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service