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Permalink Reply by A. Hunter on December 19, 2012 at 4:36am

Searcherone Sorry to disagree I have seen Garrisons lease and it is not any better than many others out there now including some negotiated direct by landowners & small groups such as the switzerland group and EMLO as Olive Sue stated above is a pretty good lease,

   I know this Garrison leased people in the river group and others in Jackson, Lee, Ohio & Green Twp for $4,000 an 20% gross with a $1,000 additional pmt if not drilled in 3 yrs. (thats a good thing for the Oil company to keep 20% of the money for 3 years,)  She gets 4% off the top for that.

Many Individuals in Salem Twp negotiated leases with the Same O&G company within 3 months of the Garrison deal for $5,000 and 20%  a decent lease (they got use of the full $5,000 now) with no Fee to an atty.

A group in Switzerland also negotiated a decent lease with an Oil Company within 4 months of Garrisons deal for $5,000 and 20% again with no Attorney fee,

Then EMLO Group just signed with the same O&G company and for the same areas that Garrison leased  Ohio, Lee, Jackson & Green twp and added Salem & eastern Green twps for $5250 and 20% Gross royalty with a good lease, again with no fee for an attorney or broker.

Here is the other thing these attorney groups are signing people up getting them to commit to as long as a year, and if you sign with anyone during that time even if they had no part in it they get their fee from the landowner, I know of 2 people that were offered leases individually and they have to pay Garrison if they sign, It also gets them in the middle of any deal so they can piggy back the deal with no work & get paid, as KWGD & Lensman attorney groups are doing right now in Monroe, joining in the Switzerland Consol group deal and the EMLO deal with a slightly different lease and in some ways a worse lease,   I love  the new spin on Garrisons 3  yr pmt to where Lensman is offering a 5 yr with 5-1 year renewals instead of the typical 5 yr & 5 yr renewaL. again the O&G company keeps your money & allows them to save millions if the drill between year 6 & year 9 or if they just decide to not renew after year 6? beneficial to the O&G company & yet the Attorneys get their fees.   

I still feel the smartest thing is to create your own landowner group with neighbors & friends & family with contingent acreage by twps  and stick together with a set expectation on Lease, Bonus & Royalty.

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Permalink Reply by searcherone on December 19, 2012 at 5:54am

A Hunter, I am quite pleased that my Monroe Co. neighbors have good choices now for leases, but I still remain with the fact that Garrisons lease is good. I got my money in six weeks and I am satisfied.

I am coming from a perspective of dealing with shallow well leases for 30 years--there were no options of drillers, no production, almost non existence of good qualified legal advice, and yes it was a pain in the darkness.  

So I truly am happy for Monroe Co. citizens and I hope we all rest well with the decisions we make and the money we make etc.  It is time Monroe and its residents are respected on all levels.

I continue to rest well with my decision and if Eclipse does not resign my small acerage when the time is up, I am free of the lease and move on to another company when more data will be available on the riches of Monroe. 

Since you have I assume read these leases do any of them say on the royalty clause the following words that I have put together from this site:

"Gross royalty at the well head and at point of sale in an at arms length transaction to an unaffiliated party"

I enjoy discussing these issues surrounding o&g and all this is IMHO

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Permalink Reply by A. Hunter on December 19, 2012 at 8:10am

Searcherone I have seen many leases and each is written slightly different but IMHO  as landowners get educated they are better prepared to protect themselves without paying big chunks of their money to an Attorney group to get them the same deal or in some cases a worse deal than they can get with a landowner operated group and even individually, to your point one of the leases we are discussing had a very similar Royalty Clause, the other as most leases have now includes a market enhancement clause which I’m not sure how the courts will interpret. You tell me which is better. I would share with you but Since Jennifer Garrison charges 4.5% fee and a commitment  for 12 months before you can see her wish  lease language feel I need to decline sharing confidential info from other leases.

By the way as I see it Bricker & Eckler are the oil and gas attorney’s. Garrison was and is just the front person profiting from her former political office. I assume Garrison caved to that 3 yr payment provisions to get a fee and then sold it to landowners as a commitment to drill. What a joke – IMHO it was nothing but an interest free loan for 3 yrs. Not to mention it appears she rushed a deal with Eclipse in Noble county for $4000 & 19% when Antero paid $5900 and 21% the very next week for the same acreage area

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Permalink Reply by bo boboski on December 19, 2012 at 10:39am

I'm having a problem with the term,"gross at the wellhead". Since no-one buys the oil or gas at the wellhead. It has to be seperated,transported,processed,not sure what all else before it is sold. "at arms lenght at the point of sale "may be better. Just not sure yet just where the point of sale is? It may be better to take"gross",or "net" out of the wording of the contract.  Say; 20% royalty of the sales at the point of sale. With the Lessee paying for the costs of tranporting,seperating,processing,enhancing,or making the product ready for sale.  Some landowners who are now getting royalties are surprised to find that their checks are coming with these costs deducted!

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Permalink Reply by Samuel J. Orr on December 19, 2012 at 8:05am

I am in Pennsylvania.. Jennifer Garrison may or may not be quite good. Since I am not an Ohioan, I do not know. Would you consider posting the lease language on line? If not would you send me a copy if I sent you the money for copying and postage? By the way is Jennifer Garrison an attorney? What type of marketing agreement do you sign with her if any? It would be nice to know the term of the agreement and the commission she charges! I agree that there are lots of attorneys who claim to be experts in O&G leasing who in fact are just looking for a fat payday and know little or nothing.

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