M&P BEING SUED / CLASS-ACTION SUIT AGAINST HALCON, M&P & CX

 

Hello everyone:

                         I have not posted anything on here before. I have always just read the comments of others. I thought I would just post some thoughts. After being patient for 8 1/2 months I still have no answers like others in the south east Mercer County area. Is Halcon going to be held responsible for their actions? Are they going to be made to pay for the contracts they signed for? How qualified is M&P when it comes to representing the landowners of group 4 against a company like Halcon with deep pockets. Will we get an honest effort from M&P or will they make it as short as possible and except less than what we deserve to mitigate damages on their behalf. I have just read, in detail, the civil suit against M&P by Terra Energy LLC. Now it seems to me that the landowners not only have to worry about being pushed around by an unethical oil & gas Co, but now we have to worry about the real motives of the law firm we have to represent us. Are they going to treat clients like they treated business partners? I think if given a chance M&P will come back to the land owners after any legal actions against Halcon with a bogus report how they couldn't do much and if we continue it will tie up our lands for years, of course due to a half hearted attempt at getting us what we legally are owed.

                        I only have this attitude after listening to M&P for 8 1/2 months tell us how important it is to stick together as a group but they will break up the group at the drop of a hat to sign a little chunk to this O&G Co and another chunk to a different O&G Co. This sticking together only benefitted them by having all of us available to them for whatever size of lease they could get from any other O&G Co. After seeing an E-Mail to Terra Energy Advisors LLC from Jack Polochak describing how maybe Terra Energy should  get some leases signed by an O&G Co that are less than desirable for landowners to make it look like A Co he was partnering up with was successful in the oil and gas leasing business. That just shows me that he will sacrifice his clients profits to improve his and his associates. I think everyone should read the Lawsuit especially the landowners of group 4. Maybe I am seeing this in a sinister way and I am just swayed by how the rest of the world does things these days. Here is the link to the Lawsuit. I would like to know how many other landowners see it the way I do.

MPLawsuit.pdf

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Permalink Reply by Mark McGrail on February 22, 2013 at 1:56pm

Jim,

I've met you, and have read what you have posted on this site; based on this I believe you to be a decent person.

However, since you are involved in this situation I believe you do yourself a disservice by continuing to post and fight the fight here. As hard as it may be, you might be better served if you stay on the sidelines for the duration of this lawsuit.

Good luck to you as well.

Permalink Reply by JohnL on February 22, 2013 at 4:03pm
I have been following this thread with great interest (I represent elderly parents with G&O interests in the now famous meteorite impact area around Sandy Lake TWP USA, not be be confused with recent events in Russia). I do find Jim L.comments regarding CX/M&P and the recent NAPE conference interesting. I have heard 3rd hand that a member of MtJ4 group was recently told by CX to expect a letter in the mail in the next week or so regarding a meeting about several companies that are interested in the remaining MtJ4 acreage. Is it just a coincidence that Jim L. brought up signing with another company for $3000/acre and only being able to only sue for the difference. Has anyone heard about this latest potential offer?
Permalink Reply by petej on February 22, 2013 at 4:58pm

Fang / JohnL,

 No secret - SWEPI ( Shell ) has been up here going door to door in ( at least ) NE Mercer offering $3,000 / acre and approx. 15% royalties with deductions. On top of that, the lease terms are very unfavorable to landowners in my opinion.

Permalink Reply by JohnL on February 22, 2013 at 6:09pm
Petej- not surprised. Vista/SWEPI are heavily leased in that area, again the reason Halcon dropped the 4 Townships in NE MC. What's interesting was the conversation I had with a Shell rep in Harrisville a few weeks ago. He said the days of the big money was over that no one would pay that kind of money again (well except maybe for Shell). I can't imagine too many people will walk way from that in favor of a possible judgement someday from Halcon. JMHO
Permalink Reply by Jim Litwinowicz on February 22, 2013 at 4:46pm

JohnL  Please don't read too much into that post.  I merely picked 3000 as a number to make the math easier.  I have no idea who they are negotiating with, what numbers are involved, or how long it will take. It may be weeks, it may be months. It may be more than $3000, it could be less. It may even be more than what the Halcon offer was.

I keep saying that I am small pawn on this chessboard. I have only been to the Cx office twice in the last twelve months. I have no idea on negotiations other than they are ongoing since that was what was told at the Venango meeting Tuesday evening.

This is one of the reasons I decided to quit posting here...people read what they want into posts. I only responded to your post just to be clear that those numbers were just a mathematical exercise.

Permalink Reply by JohnL on February 22, 2013 at 5:18pm
Jim L. - for the record I wasn't reading anything into your comments. Actually you simply repeated much of what was said at the last CX meeting In Grove City by the M&P attorneys'. Again rumor has it that they came away from NAPE with some significant interest, as was explained might happen to the group in GC. I was disappointed with CX and M&P when "THEY" chose Hilcorp on behalf of the MtJ4 group over Hilcorp after we were told the bidders were to be presented to the group for discussion Had Hilcorp signed the MtJ4 group none of us would be having this discussion right now. Prior to MtJ4, CX/M&P had a good record of getting the promised money for landowners. I know several people who did well by CX and co. I had attented numerous meetings starting in 2011 and had. No reason to believe we were being mislead. I had expected to be paid just like everyone else. I think Halcon got the best of a couple of small-town lawyers and a bunch of country folk (and yes we do kling to our guns and bibles here in Mercer County)

I'm not here to defend or ridicule anyone, so to the GROUP- please don't ponce on me. I just think a law suit against Halcon will end up being a waste of time since at some point all of Mercer County will be leased and Halcon knows this and that their liability will null. They'll just wait us all out.
Permalink Reply by Samuel J. Orr on February 23, 2013 at 8:53am

Hopefully  Mr. Moraczyk  has not intimidated people from posting further comments? This has been an extremely enlightening thread and it deserves not to die a premature death.

Permalink Reply by petej on February 23, 2013 at 6:00pm

Agreed Samuel! Please keep posting with your thoughts - insight. Thus far, very informative thread.

Permalink Reply by Samuel J. Orr on February 24, 2013 at 12:50am

You are probably correct! I am afraid I have been saying the same things over and over on this M&P thread. I do not wish to become another GG.. I raised every red flag that I could on the thread entitled "Help Research DUX Petroleum LLC" and it seemed to have no effect at all on those "true believers" down in Washington County, Ohio. As for the M&P thread it has been very lively, very educational, and very addictive. I was checking it several times a day because there were so many excellent posts. I look forward to reading your continuing posts to the threads of your choice. Have a good day.

Permalink Reply by JohnL on February 24, 2013 at 6:12am

Sam Orr/Fang and others-

I just want to start out saying that I find all of your comments very interesting and informative and I,  like Sam and Fang find myself checking this board frequently.I think the people on this board would make an interesting Saturday breakfast group,

That being said, I'd like to share my thoughts and experience with all of this. About 10 years ago I was approached by a landman about leasing my farm for gas drilling.  We had purchased the land about 10 years earlier and everyone around us had a shallow gas well.  They offered us $5/acre, free gas and 12% roylaties.  At that time and up until the past 2 years that was the standard rate around Mercer Co. As I re-read that lease today there is absolutely no protection for the land owner in. They drilled a well, we got our free gas and a few hundred bucks a month (now it's more like $8/mo).  So when I started attending the CX/M&P meetings in Lawrence Co and followed them to SW Mercer County then on to the MtJ4 group in Stoneboro I was impressed with all they were offering the landowner in terms of money (each group getting more), the royalty %, and most importantly the landowner protections (none of which I had or have today- still HBP). When it came time to sign the MtJ4 lease WE did have it reviewed by an independent attorney and was told it was a GOOD lease. I am a busy small business owner who for one does not have the time or the expertise to go after a G&O on my own and in my opinion the landowner group (good or bad) made sense. As I mentioned before everyone got paid that were members on MtJ1, MtJ2, MtJ3 so why did anyone of us in MtJ4 think we would be any different?  I saw them deliver on their promise for each group and made several people I know a little/a lot richer. There were and are no O&G companies knocking on our door. Did we get screwed by Halcon in Sandy Lake township (owned by my elderly parents)? YOU BET!. Is CX/M&P at fault? Who really knows. I am I going to cry over it, NO.  Are there other offers out there?  I sure hope so.  The well on my farm in Mercer County is HBP and the O&G assigned our "deep" rights to Hilcorp last summer.  What did I get out of that deal? NOTHING.  My only hope is Hilcorp or someone drills a well and I get my 12%, so when I hear comments about crying over a "bad" deal I have NO sympathy for anyone who bitches about the offers that they've got over the past 2 years or may get going forward.  I know what a bad deal is and there are lots of people out there just like me!  I am I complaining about it, NO.   

Again, I enjoy following this board, I love Fang's comments, I think Sam is starting to talk like a lawyer, and I even enjoy GG's comments when I can understand them (he certainly adds a little color)......... just JMHO.

Permalink Reply by JohnL on February 24, 2013 at 8:30am

Fang,

I appreciate your comments. My post sounds a little angry, but I'm not.  I'm just happy to see something positive happen to the folks in our area and hope that some of it comes my way one fo these days.

The lease we have (HBP) seems very basic and has minimal language.  I have been meaning to have an attorney (one who fully understands the O&G business) look over the lease and the assignment of my (their) deep rights. 

What I find odd, is that the production O&G company first transfered the overriding royalty interest to the President of that O&G co, and then the O&G rights were transfered to Hilcorp.  All of this seems to me to be unsual and questionable. The trouble is finding an attorney who actually understands all of this verses those who advertise that they do.  After the MtJ4 debacle who can you trust?

jl

Permalink Reply by Mark McGrail on February 24, 2013 at 7:08pm

JohnL,

Usually those harmed by the transfer of ORRI are  investors, not land owners.

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