Replies to This Discussion

Permalink Reply by frank ellis on June 23, 2012 at 9:30am

Large blocks are made up of many smaller land owners tied together. Sorry for the confusion. It's hard to say what producer will be interested but with large sections of contiguous acreage it only enhances or improves Perry and Benton's marketability. Come out and talk to the group leaders Wednesday at the Antioch Firehall. I worked with Jennifer and SEOLA down on the riverfront as a landowner and helped put together something pretty nice for Jackson and Lee townships. I want to help people in Perry and Benton townships too. But let me be clear: I am not getting paid for any of this. I've been in this community for over 30 years now and want to help make it better.

Permalink Reply by frank ellis on June 23, 2012 at 10:13am

Razor,
Let's hope they find what they are looking for in Green Twsp. Section 36. If they do, Perry/Benton/Green will not be a hard sell. The equipment and people will be in place. I don't know about you but I'm excited for this county. It's about time the people who have worked hard all their lives get rewarded. Sticking together only raises the reward.
That being said Exxon/Mobile/XTO thinks there is something under the ground in these Twsps. and they aren't in the habit of guessing wrong.

Permalink Reply by frank ellis on June 23, 2012 at 8:53am

The clinic is at the Antioch Firehall. I didn't mention that in the heading but put it in the body. Sorry, my bad.

Permalink Reply by frank ellis on June 23, 2012 at 11:50am

I'm not sure the "standard deal" is what they got without looking at the lease and addendums.

Permalink Reply by frank ellis on June 23, 2012 at 11:44am

SGJ,
I don't know how many acres you have but most individuals don't have enough to have bargaining power with these big O/G companies. So it's in the interest of everyone in the Twsps. to stick together. Simply put they don't want to deal with landowner groups that don't have professional representation. I will argue that point until I die because we tried it on the riverfront and almost got taken to the cleaners. We were smart enough to know we weren't smart enough to deal with these companies so we looked for help. The 4.5% fee in our case was paid by Eclipse. It's customary for the producer to pay the fees in these land groups because of all the work that the group does for them. The commitment is for one year to the group and it allows the producer to know what the group brings to the table and it keeps people from getting picked off. You don't have to sign the lease that SEOLA brings back but if you sign with that same company that SEOLA choose for you within 24 months then you owe the 4.5%. If Jennifer and her team brings 5k-10k acres to the table in a mostly solid contiguous block then she will most likely not have any trouble getting the O/G company to pay her fee. They have paid their fees in all the deals she has worked out.
As far as the checks, I'm not sure how it works but there's a tax advantage to putting the money in an account that's separate from the producer. That's all I know about the checks SGJ other than they are good.
How many acres do you have? How many are in your group? What Twsp are you guys in?
Thanks for the questions. It gives me a chance to explain how things worked out on the riverfront but each group will have their own deal. The deal that Perry/Benton gets could be far better than what we got and let's hope so. Groups are the best way to go for the land owner. Selecting an experienced team of lawyers who have done deals and have connections is most important to your group. Good luck and maybe I'll see you at a clinic.

Permalink Reply by frank ellis on June 23, 2012 at 12:12pm

Sounds like you're smart go for it. Here's hoping you get a good deal.

Permalink Reply by frank ellis on June 23, 2012 at 12:40pm

Have a nice day and good luck to you and your group.

Permalink Reply by frank ellis on June 24, 2012 at 1:38pm

SJG: Really? How did I already have that figured out? You ask enough questions to keep 12 wise men busy. I believe there's an old saying about that. Have a great day. Good luck as always.

Permalink Reply by frank ellis on June 24, 2012 at 4:21pm

SGJ: You must of heard the saying I was talking about. That's why over 200 land owners signed up with Jennifer Garrison and her team from Bricker and Eckler. They gave us somewhere in the neighborhood of 42,500,000 tiny answers that fit in bank accounts and a producer who will soon be poking holes in the ground. There will be more landowner clinics out at the Antioch Firehall. I hope you can free your schedule up to attend one. As always have a good day and I give you the last word.