Replies to This Discussion

Permalink Reply by Susan Johnson on October 20, 2011 at 12:47am

I have looked at the site.  However, they don't mention royalty percentages or bonuses.  I was just curious to know if they are inline with what we all have been seeing lately.

Permalink Reply by Adam Thomas on October 31, 2011 at 1:22pm

The group you asked about is a group of environmentalists.  They are willing to lease your land so long as you sign over the rights to them for the next five years so whenever they think it is best to sellit they can.  They will pay you nothing for that five years if they don't get a deal done or screw up.   They will gamble on the area being good so that they can increase their profits as they get an 5-8%  of your upfront money.  They just started the group in August and have never sold a lease or ever got anybody paid a dime but if you are willing to commit the rights to negotiate your finances to people that have no more experience in the gas leasing industry than you do, then they are certainly willing to gamble with your property as they have nothing to lose.  At least one company has a set time frame so if they can't get a deal done, then your property is free and clear, not tied up for 5 years like this group does.

They do talk alot about water and don't really reference the ODNR website that says there are over 80,000 wells in ohio that have been hydraulically fracked over the past 40+ years.  The only new part of all of this is the horizontal drilling and that now they can frack in multible stages so they can do it alot more efficiently, effectively, and safer.

Permalink Reply by 09bp5t05myjl3 on October 31, 2011 at 2:25pm

Adam sounds just Like Wishgard

They will gamble on the area being good so that they can increase their profits as they get an 5-8%  of your upfront money.

Permalink Reply by Adam Thomas on November 2, 2011 at 3:15pm

Tommy D

it is clear that you do not realize there is a HUGE difference between saying that someone will get you paid "X" amount of money in "X" number of days or your land is free and clear.  If they cannot get the deal done then your property is free and clear at the end of "X" number of days.  Basically saying either they will do what theyu say or you have no commitments to your property.  If you sign a lease with them(NELA), your property is tied up for a five year period and they don't have to pay you anything in any specific time or specific amount yet your property is bound by that agreement that you signed with them for the entire next five years.  There is a HUGE difference! 

 

For example, If you signed a lease with this NELA and God forbid, you get in an accident on the way home, or get aserious illness and cannot work.  Since your property is committed to them for the next FIVE years then you cannot sign whatever the best deal is for you or based on your individual circumstances.  As with any legal agreement, you are stuck with that agreement. If you can't work and make your mortgage payment due to injuries, illness or even job loss and need money right away then you can't sign a lease with someone else to get the most money you can at the time to help with expenses or help keep your house while you heal or find a new job.  You could lose your entire house or property because you do not have the rights to negotiate on your own because you signed a lease and people that are not in your particular circumstances are controlling it.

 

Accidents, illnesses, and job loss are just a few of the unknown variables that could/will effect people over the next FIVE years!  Factor in the fact that the company has never got a lease approved/and or assigned to ANY O/G company EVER and it is a TREMENDOUS GAMBLE.  If any company is telling people that they will get them "X" amount of money without telling them how long of a time to pay then people should run!!!!!!  They are just people trying to be a minority partner in your property yet control it like they are the majority owner.  Don't fall for the "I will get you this and that" unless they are willing to put a reasonable deadline on it because otherwise THEY are just gambling with YOUR property and THEY have nothing to lose like you do!

Permalink Reply by Adam Thomas on November 2, 2011 at 4:23pm

Sorry, I apologize if I misunderstood you.  Perhaps it was my A.D.D. that was kicking in.  lol