Replies to This Discussion

Permalink Reply by Doulittle on March 18, 2012 at 10:00pm

Todd, regarding your "in addition" idea, I think you have it totally backwards!

Everyone seems to gravitate to the "Show Me the Money!" aspects of a mineral rights proposal.

My belief is that all Landmen for the energy companies exploit this in their approaches to secure contracts which may prove advantageous to the developer in the future.

While the $$$ are important (and the most fun aspects of any lease), the tedious "fine print" in the lease need to be equally well attended.

Permalink Reply by Kathleen on March 19, 2012 at 1:55am

Hi
We paid 2.48% with no royalties given to a lawyer group but I'm hearing ( not sure though) that this lawyer groups lease is not being accepted anymore. We met with a consultant who wanted 5% but no royalties. When the consultant was working on our behalf he told me he found their start number which was 5600 on that day and from there the price would drop as we asked for surface amendments.

Permalink Reply by Utica Shale on March 19, 2012 at 7:19am

Dpends upon how any acres you have ...

 

 Small Acreage ?

 then pay 3% of Siging Bonus with a CAP of $100 per acre maximum

 $100 CAP occurs at $3,333/acre Signing Bonus or higher.

 

 Big Acreage ?

 then pay Retainer against Time & Material

 

Permalink Reply by Todd on March 19, 2012 at 8:59am

About 80 acres involved... Have an attorney that would like a "back-loaded agreement that incents his performance". Still waiting on specifics, but I believe he would like up to 5% of the bonus.

Have another attorney that will only charge # of actual hours worked but I'm not certain how well he will negotiate.

Thanks for your advice.

Permalink Reply by Todd on March 20, 2012 at 5:44am

Utica Shale,

What is the upper limit that you would recommend paying for negotiation of lease addenda, gross royalty percentage and bonus for approximately 80 acres with surface ownership and 100% mineral rights?