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Permalink Reply by Art Tripp on October 24, 2013 at 11:10am

My wife and son went to the meeting at Salt Fork (I had to work and am working again today so can't make the St. Clairsville meeting).  They are established to work for the landowners they represent and even the odds so-to-speak (my words, not theirs) when dealing with the issue of leasing.  Collectively they have an impressive list of legal representation, accounting, real estate and other professionals with a wealth of knowledge (not only locally but through travels to Texas and such).

We have small parcels in both Carroll & Harrison Counties and were pretty much at the mercy of the gas/oil company when we signed in regard to what was being offered, but have over 100 acres in Guernsey County (that we have intentions of building and living on) and are a bit more particular in regard to the lease we sign there.  We are going to sign with LLG due to their ability to negotiate on a larger scale by using the acreage of multiple landowners to gain a better deal both financially and in regard to property protections (and to not unknowingly sign a clause that could be detrimental in any way).

The presentation included a lot of information and from my wife's notes: signing bonus $5,000 - $7,000, royalties 18 - 20% (Gross, not net with multiple deductions), surface and environmental provisions, tax responsibilities and so forth.  Their fee is based on a percentage of the signing bonus and in some cases they have negotiated for the gas/oil company to pay the fee, and LLG does not receive anything off royalties or otherwise.  Also even though a variety of properties in the county are already signed, with the swapping of leases and other things there the ball hasn't been missed and their outlook on this area is quite favorable (especially with known production reports).  

Given that it can be a good idea to have an attorney or other professionals review a lease prior to signing, it can be an even better idea to simply have it negotiated in your favor in the first place and not just take the standard offer written by the gas/oil company.

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