ATTENTION Landowner Group Members

The IDEA of "strength in numbers (acres)" is quite apparently agreed upon by many members. Let’s not forget that a portion of those "numbers' will not have a chance at the lease being paid.  Because if your "numbers" are not connected/contiguous to other "numbers" the valve of your numbers are not as appreciated by the potential LESSEE. And an outfit, no matter how financially secure, only has so much capital it is willing to spend/risk on a project.

Hypothetical Question: What if a group of 25,000 acres agrees to sign but only 10,000 of those acres are contiguous, what would be the incentive to pay the remaining 15,000 ac scattered all over the area? After-all, 10,000 ac would be quite enough leasehold to form producing units.

Also remember lawyers are paid directly from the amount of time spent "consulting" with the client(s) board leaders and it is very profitable to drag the process along for themselves. Every time a call/letter/email/fax is addressed concerning the process of your group.....cha ching, time is being billed. Another thing to remember, your area is not the
only area.....rather than drag it out, an outfit (especially a proven profit making producer not a flipper) just may pack in it and move to another more open-minded area and spend their money there. Which would leave your area open for another round of negotiations with another outfit and the much anticipated billed time for your friends at the law firm?

Hope you didn’t have plans for the bonus money anytime soon, yet the possibilities of a royalty check. Don’t worry, that new roof on your house/barn can wait (it isn’t leaking "that bad"). You can always wait for next year’s model of the truck/tractor you were planning on buying.  Paying off those loans can also wait...after all you've been paying on them for
years already. College tuitions can be paid for by the loans you were planning on getting anyhow. Your daughter’s/son's wedding will be fine downsized, their so in love it won’t matter. Vegas....you can do just as good at the local casinos that are closer to home and are popping up everywhere, you can’t afford to take that much time off of work anyhow.



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Permalink Reply by Finnbear on November 17, 2011 at 1:34pm

Schnoozie,

Take a look at this pdf file. It is the slides from a Powerpoint presentation on forced pooling. Pages 10 and 11 are interesting.

Finnbear

Attachments:
Permalink Reply by Nelson Roe on November 17, 2011 at 8:36am

Hey Katherine,

Do you have a county group for whichever state you are in?  There was recently a change in the solicitation rules for this site... The main forum here, & the State Landowner pages are really the only places that no longer allow solicitation for groups or businesses.  So, if you have a county group on the forum, then I would check there, or post something within there that you are looking.

Permalink Reply by Finnbear on November 17, 2011 at 8:38am
The landowner groups are allowed to solicit members in the county groups. Go to the county group you want people from and post your notice there. If there is not already a group for that county, create one.
2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on November 17, 2011 at 3:46pm

Katherine

Too hard to find a group or too hard to find people to join a group?

Can't imagine there's much unleased land left.

Find out who's drilling closest to you and track them down. That should be the shortest route to royalty checks. By now anyone should get a good lease flying solo. The O&G know we're edumucated now. lol!

Permalink Reply by Schnoozie on November 18, 2011 at 2:47am

This post sounds like more, "you better join a group" scare tactics.

They (evil landmen) They get cut out, go alone mentality, makes no sense, think they are smarter, be careful, might end up surrounded, at the mercy, and finally the cherry on the sundae!!!

Here is an example to complete my arguement of the benefits of joining a group, of someone who made a decision that was regretable. Poor guy, who will remain poor.

 

Permalink Reply by Schnoozie on November 18, 2011 at 2:48am

Also thanks finnbear I will read it at lunchtime.

Permalink Reply by time will tell on November 18, 2011 at 4:42am

I'm confused , are you pro land group or anti ?  Schoozie

Permalink Reply by Schnoozie on November 18, 2011 at 4:58am

I am pro, "How did the window get broken?"

Someone-tell-me-the-truth.

Without any conjecture, fluff, fancy stories, salesmanship, pros and cons, changes in storyline, scare tactics. Etc.

Permalink Reply by Nelson Roe on November 18, 2011 at 5:13am

I believe that many (or at least some) have tried to tell the truth as to their own personal experience... But then the accusations & "daggers" begin to fly...

Permalink Reply by Nelson Roe on November 18, 2011 at 4:46am

Schnoozie,

I thought that you were here as many of us are to learn more about the process...  You seem so fixed in the "anti-group" mindset that it seems that all that gets done on this thread is bickering about groups or go-it-alone.  I believe that we all need to remember to stay open-minded in this process.  Remember that there will be good & bad out there in both worlds (groups & landmen/solo negotiations).  What works for one person may or may not work in another individuals circumstances.  I have not seen where anyone on here has flat out said not to take a deal if you can negotiate one on your own that would satisfy your wants/needs.  If you can do that, or if you can ban together with 3 or 4 of your neighbors to form your own drilling unit & get an O&G company to negotiate a lease that you would be willing to sign, then all the better for you.  But the constant "group mentality bashing" is rather unnecessary & could be likened to an agenda that is similar to those bashing the landmen, only coming from the opposite end of the spectrum.  I believe that the main thing to remember in this process is that it is NOT a "one-size-fits-all" type of a process and it would be nice if we could all stay respectful of that towards others whose situation took them in a direction different from the direction we went or hope to go.  I have stated before that I did utilize a group.  I am happy with that decision at the present time.  However, if an O&G company had approached me individually & been willing to negotiate some of the terms that I considered important, as well as been willing to pay a fair market price per acre, then I would not have been opposed to signing individually. 

Permalink Reply by Paul Martinelli on November 18, 2011 at 4:54am

I agree....you must do what is best for your situation.

 

I will say this......I believe ALOV  set the standard for all leases to be judged against.  There may be others as well...But The lease that came out of ALOV probably did more to help landowners in Ohio than any other.

disclaimer:

I did not get a signed lease through ALOV. I did learn a tremendous amount about leasing from them. Money well spent.

Permalink Reply by Schnoozie on November 18, 2011 at 4:59am

What was ALOV?

Thanks nelson.

What made their arrangement stand out from all the others? Was it protections offered in the lease? safety issues addressed, water quality and testing. Those are my biggest concerns. 

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