Really disappointed about signing with M&P lawyers and Co-exprise!

I signed with M&P lawyers in Oct. of 2011. Signed for a 90 day extension in Jan. of 2012. These lawyers at that point joined back up with Co-exprise and increased their fee to $250 per acre. Supposed to be paid by Hilcorp by April 15th. Called M&P on Friday and was assured that a check would be here Monday. Now it's Monday, and of course, no check. Most of my neighbors that signed with Hilcorp on their own got paid. It's very frustrating!!!

Views: 7702

▶ Reply to This

Replies to This Discussion

Permalink Reply by Samuel J. Orr on April 20, 2012 at 7:52am

Yes, and he gets to keep 10 times as much money for himself. That doesn't seem unfair to me. If you sell a house and use a real estate agent you pay a  commission of 6 or 7% on the sales price. The guy who sells his house for $500,000 pays ten times the commission to the sales agent compared to the guy who sells his house through the same agent for $50,000. That doesn't seem unfair to me even though the effort by sales agent to sell each house may have been the same. Of course if your political leanings are to the far left, then your complaint is understandable. This is a reply to Mike C.

Permalink Reply by Mike C. on April 20, 2012 at 7:59am
Since you are in to analogies let's try this one. A guy walks in and wants to buy 30 expensive cars.for his friends. He is pitched 30 great cars and is then told by the salesman that if he wants those 30 he also needs to buy 50 more that he has no use for and are largely valueless to him. What do you think happens to the average price per car? But hey the salesman sold 80 cars and that is all that really matters right.
Permalink Reply by p umpjack on April 20, 2012 at 8:19am

I get the capitalism thing what I struggle with is ....preying on the herd of lambs

you get the expert who was involved with 1 deal that drug his neighbors in and took there scalps then got a kickback from the lawyers as well is that who you want to associate with

my group is better than yours we have slicker lawyers we are in negotiations with 3 o/g companys

 guess what everyone that has land in our area is as well also go to your mailbox every carpetbagger is a o-g expert and a mailer

 

Permalink Reply by Jim Litwinowicz on April 20, 2012 at 8:30am

Mike C; Mike C; every parcel has value. Our area is so fragmented that these companies know in advance they will have to do some horse trading to form drilling units.  Our area has lots of HBPd parcels scattered about. Furthermore, there are multiple companies signing leases just in Mercer Co. They know from the get go that they will have to trade and swap to form drilling units.  Thus they are willing to accept isolated parcels surrounded by a competitor. They will swap that for acreage adjacent to the larger tracts they have to form a unit.

Permalink Reply by Mike C. on April 20, 2012 at 9:17am
I understand how trading works. What you do not understand is that there is far less trading that goes on then people think. I would not want my future hanging on a trade. Also do you think that companies like doing all the work for a parcel just to trade it? Those parcels bring down the value and that is a fact.
Permalink Reply by Jim Litwinowicz on April 20, 2012 at 8:12am

Mike C; in every single deal that Cx and M & P has done they have gotten more money than the fees just in the bonus than the offers by landman to individuals. No one lost value and in fact everyone gained value. And with better lease terms the value is way better. In fact, the Hilcorp offer was double what we had been offered for over six months. It was only by bringing in outside competition that they were able to force the prices up. No one landowner could have pulled that off.

Permalink Reply by Jim Litwinowicz on April 20, 2012 at 8:58am

Just to clarify things a bit. In Oct, Hilcorp was paying $3000/acre through the original M & P/Co-X agreement and people that were not part of the original group were charged an 8% fee. Shell had gone to $3250/acre so that this deal was no longer the best offer from a strictly bonus number comparison. So both M & P and Co-X began to aggregate land to get a better offer.

Tracy did not sign a lease in Oct but instead joined a landowner group being formed by M & P that had a three month agreement. In January, they asked for people to sign a three month extension as they had not gotten an signed offer and Tracy signed that extension. 

M & P along with Co-X, working together, got Hilcorp to agree to pay $3500/acre of which $250/acre would be paid directly to M & P/Co-X and $3250/acre directly to the landowner. So the $3250 net was substantially better than $3000/acre with either a 6% or 8% fee.

And as far as I know every lease signed in January was for 120 days.  Western Land, the company that does title work for Hilcorp, had run into many problems that caused delays.  Western had brought in extra people, paid to have the courthouses to stay open evenings and Saturdays (Cost shared by other O & G companies like Shell that were in the same predicament) and even bought extra computers for the courthouses to use. But they still couldn't meet the 90 days so they asked and received the 120 day time period.

I have not read through Tracy's lease but I am reasonably sure it was for 120 days.  Even if it was for 90 days the money will be there shortly. The problems were with the complex deed work necessary and the congestion resulting from the mad rush brought on by this tremendous opportunity that we are all blessed with. Rather than be at each others throats, we should all be a little more patient and be thankful for our unforeseen riches.

Permalink Reply by Schnoozie on April 20, 2012 at 9:08am

Impressive, all in one breath.

Permalink Reply by Schnoozie on April 20, 2012 at 9:31am

A courthouse, was open on a Saturday, in North America. funded by Oil and Gas companies???

Where and when again was this?

Permalink Reply by Billy Park Whyde on April 20, 2012 at 3:44pm

Guernsey County were or are running extended hours at the recorders office  three nights a week till midnight and open on Saturday from like 8 til 2 I might be a bit off on the hours but it had been in the press  and posted here in GOMS.

Permalink Reply by Schnoozie on April 23, 2012 at 8:00am

Let me clarify, what I meant was a courthouse that was open in the evenings and on the weekends at any time in PA, expenses paid for at the request of an oil and gas company, to meet any deadline, supported by land in PA going into a group lease. 

Permalink Reply by Tim R on April 20, 2012 at 3:14pm

I'm confused.  M&P and Co-x took the standard Hilcorp lease, word for word and changed/added a few addenda.  I have copies of both.  Hilcorp was more than happy to have you sign direct with them.  So why pay the commission?  Negotiate a few addenda on your own.  I'm not seeing that minimal amount of work worthy of that commission, or any commission for that matter.  If they had a lease like the S.U.R.E. lease or Friendsville lease, then definitely.  Those leases were about 17 pages versus 3 pages.   What was really funny was that they put a lot more time in the contract you signed for them to represent you than they did for the lease they wanted you to sign.  That contract was actually longer than the lease!  So for 6,7,8% and $250/acre you got a couple of addenda.  Can anyone explain this to me?

RSS

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

Badges  |  Report an Issue  |  Terms of Service