Principal Energy LLC ?

  Hello,  I am new to this site, and need wiser people than me to give me an opinion on Principal Energy LLC.  I have Mineral Rights on land in Weld Co. Colorado, and they have contacted me and are offering me a lump sum and monthly payments for a 5 year Primary primary term Royalty Conveyance on my property.  Their agent is reassuring me that this does not mean that they are buying my mineral rights, but are looking to the future to lease them..This is all very confusing to me, and although I could definitely use the money they are offering right now, I don't want to be selling all my future royalties on the land to them. Are they a reputable company?  The agent is calling me every 2 days, wanting an answer, but I keep putting him off, because I am leery of making the wrong decision.  Thanks to anyone who can help shed some light on my situation.  A widow in Oregon, Mae

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Permalink Reply by JK on August 19, 2013 at 1:59pm

Edna, you just keep putting them off until you get answers.

You need an O&G attorney to check any thing they want you to sign.

Protection is worth it for you.

Permalink Reply by edna mae pilon on August 19, 2013 at 3:10pm

Hello, JK,  Thanks so much for your advice.  It echoes what I have been instinctively feeling.  . I tried to contact the Texas Better Business Bureau to see if there were any complaints about the company, but they said that Principal Energy LLC in Houston , was not a member of the BBB. I can't understand the wording of the Royalty Interest Conveyance papers they are so urgent for me to sign.  I will try and find an O&G attorney to make sense of it for me.  Thanks so much for taking the time to respond to my "letter."  Sincerely, Mae

Permalink Reply by JK on August 19, 2013 at 3:14pm

Mae,

I hope others respond to you as well.

Permalink Reply by BirdDog on August 19, 2013 at 3:20pm

Edna,

Please have an attorney look it over! Yes, the money looks appetizing, but don't overlook anything or make a mistake you'll regret. Chances are, if they are that interested in getting you to sign today, they will still be here in the near future. Protect yourself! Good luck!

Permalink Reply by edna mae pilon on August 19, 2013 at 3:45pm

Hello, BirdDog,  Thanks so much for strengthening my resolve to resist the large lump sum the company is offering.  It is hard, because I am trying to live on my Social Security and the temptation is strong to take the money, but you are right! If they want my mineral rights so badly today, they might be worth even more in a few months or a year. I just have to research it out until I understand enough to make a wise decision for my future security.  Thanks so much for your kindness to write me.  Sincerely, Mae

Permalink Reply by Mike Buckley on August 20, 2013 at 12:06am

Edna - I can't help you directly, but click on the link below and read a similar discussion from a few years ago.  Personally, I have found these type of offers come shortly before the real activity begins.  I would never sign it, but think it predicts good things for your mineral rights. 

http://gomarcellusshale.com/forum/topics/limited-term-royalty-conve...

Permalink Reply by edna mae pilon on August 20, 2013 at 4:37am

Hello, Mike,  I can't tell you how much encouragement your reply has given me!!..and the letter from Barbara Beverly was a real eye opener! I think you are right,  because I have received letters of offers to buy or lease my mineral rights from 4 other companies in the last 3 months. They must know something I don't.  My acres are in the Niobrara area of Weld County, Colorado. Do you know anything about oil and gas production there? I am very isolated out here on the Oregon coast and have no contact with anyone there. Thank you so much for giving me HOPE of better days to come!!  Mae 

Permalink Reply by Donna Miller on August 20, 2013 at 6:46am
I did a little research and it looks like that county is a good place to own land. Keep it. It has to be worth something more than they are offering. Good luck and God Bless.
Permalink Reply by edna mae pilon on August 20, 2013 at 7:27am

 Hi, Donna,  Thanks so much for looking into this for me, and for your encouragement!  I just got off the phone with another agent and he offered me a thousand dollars an acre for what he said wasn't a promising area. Now why would he want it then? I don't know who to believe!!  But this site is my one source of truth, from others,  like you, who are much more experienced in the world of gas and oil. I am so thankful to have joined this group of caring new friends.  Thank you for dropping me a "note".....Mae

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