Replies to This Discussion

Permalink Reply by nc man on March 20, 2015 at 7:28pm

Thank you, Robert and Werner!

I am so touched to see so many good people sharing with me their knowledge and warning me of what kind of people are behind the scenes.

Seriously, this is a main reason I want to slip out from this dishonesty that is the O/G people. There is no one to be trusted. Sad, but I am seeing how very true this is. It is only $ and the value of $ only depreciates as the years go by and I am not getting any younger! (66) I am not stupid, although naive when it comes to this o/g industry! I am so fortunate to learn from ya'll.

It is  true this is a chance move, either way I go. Perhaps there will be no oil or lots! Many variables could enter in on the whole picture. If I do sell, I will not look back and wish I hadn't.  I just have a feeling it is time to close this chapter in my life. The royalty check was a mind blower to me! So you can see $ is not my god. I only wish my hard working Mom and Dad, who bought this property and rights years ago, would have been around to have enjoyed this stroke of luck.

 I am not a push over, either. I have a wife I want to make sure is well taken care of, if something would happen to me.

I do have a question for you, Warner. What do you mean by tax free exchange? We no longer own the land, just the mineral rights. Would that still apply to us?

nc man

• ▶ Reply

Permalink Reply by Nancy LeNau on March 20, 2015 at 8:55pm

nc man, God Bless you for making the right decision.  Such a wonderful thought of your concern for your wife.  Refreshing, now a days.  

• ▶ Reply

Permalink Reply by adam sorell on March 20, 2015 at 9:28pm

All  i have to say is if you deal with anything AEU make sure you get your money same time as you sign your rights over. These AEU  guys are straight gangster. B-Tards still never paid but recorded lease on my property. 2013 . I spoke to them and i told them if you not going to pay to release it.  The guy says he will have a check sent straight out. Well 1.5 months later nothing. I call him again. Guy tells me i don't know. Didn't hear anything yet.  

• ▶ Reply

Permalink Reply by nc man on March 23, 2015 at 1:34pm

Matt,

Nice hearing from you! Your words always wake me up and take notice! Thanks for the good advice. Read my lease today and never knowing if I am interpreting it correctly, I believe it says that AEU does not have to renew my lease that is up in Oct. of '16, so I think I would be left hanging not knowing what or if anything can be done. I guess I would just be stuck with my piece of paper and an owner of minerals that are worth nothing?!

This why I feel selling them, maybe not now, since the price of oil is so low, but before my lease runs out in '16, so I can make a little bit of money.

Thought of contacting an attorney but what advice could he give me?Just take a chance and hope AEU renews my lease or sell soon? I can give myself that advice. Pretty much confused.

Thanks for everyone's advice and thought provoking words!

nc man

• ▶ Reply

Permalink Reply by Werner Kostendt on March 21, 2015 at 12:28am

nc man,

It is called a 1031 Tax Free Exchange..  As long as you buy another "like kind" property you don't have to pay capital gains tax.  1031 refers to the section in the IRS code that allows real estate owners including mineral owners and even royalty owners to defer taxes as long as they purchase another like kind property which means just about any type of real estate.  You could take the sale proceeds from minerals and put it into a more predictable real estate investment.  Triple net leased properties leased to high credit quality corporate tenants like CVS, Walgreens, Dollar General, are often used in 1031 exchanges.  Lenders like to finance these properties so they can be financed with relatively small percentage down and produce a decent return on equity.  You have something like 30 days to identify the trade and 180 days to close the new deal after you sold your minerals.  Of course you would want to consult your tax guy to verify the accuracy of all that and if it applies in your case.

• ▶ Reply

Permalink Reply by 046aqwyftq0so on March 24, 2015 at 11:27am

Robert, as the head Manager of Acquisitions for Dorado Mineral and Royalty, LLC, we do not know who you are, nor do you have any personal or business relations with us. As for AEUM there is no Tom "Aiten" at AEUM. Since you know these people so well you should probably get their names right. As for Dorado, we have no idea who you are. We have no Land Services agreement with AEP, we do not provide landmen for them, and we conduct our acquisitions at our own accord. You have been misinformed and you are intentionally misinforming people, you might want to do a little research and at least shake our hands before saying you know or do business with us. And for the record Dorado has paid some of the highest prices in the play, our deals are not "low hanging fruit" acquisitions, we offer the best deals. Period. We have not backed out on 1 signed deal in the entire history of the company. Ask any landowner that has dealt with us. There are hundreds in 9 states. 

• ▶ Reply

Permalink Reply by Bill Bergseid on March 25, 2015 at 12:37am

To do a tax free exchange under Section 1031 of the IR Code, you need an intermediary.  They are in the business of helping people who have real property (in your case minerals) and want to exchange it for other real property.  the real property you acquire can be raw land, a house, apartments, or other minerals.  If you have a buyer for your minerals, you identify a list of property that you can and want to buy in exchange (usually worth more than your minerals, but not necessarily).  You have to close within a certain period of time (180 days?) on the property you want to acquire.  The intermediary can hold the money from your sale until closing on the the property you want if there is a delay.  Ask around as I have found the fees charged by intermediaries can vary. 

• ▶ Reply

Permalink Reply by Robert Bauer on March 25, 2015 at 2:32am

NC Man,
Many brokers sujest 1031 exchanges as a way to save on taxes as they view minerals as "like kind property", and it truly offers a great tax savings or deferral but unless you have a place that is suitable for you and what your needs are, there are other ways to save taxes on the sale of your minerals. I apologize for the misspelling of Tom's name, but the whole concept of AEUM and Dorado, is to sell into a fund backed by KKR to take to the public markets as an MLP, wher it is a flow through entity and unit holders are taxed as capital gains. It's not tax free but neither is a 1031, it's jus a deferral.
BMO713, I believe this is an educational forum. Have you ever been asked by multiple county officials and spoke in front of thousands of people BC of your expertise in this business? Have you represented over 100k landowners on a pro bono basis? I have and each statement can be supported by publications, like the Vindicator, Intelligencer, ect... This isn't a competition for someone's minerals, this a forum that is created to help landowners. If you would like me to post the bio of AEUM managers, I can do that but it would be a waste of everyone's time. If you really have a legitimate dispute with what I posted, I am willing to meet at any public forum of your choice and I assure you the debate won't last long. I am not a land manager of a company that flips minerals or holds a fund of less than $10 million. I am the CEO of a several hundred million dollar company built off a platform that everyone thought ai was crazy. I represented those 100k landowners for free bc it was the right thing to do. That decision was not easy as I was a young attorney with $2k to my name and a child on the way. But after 8 years, my small company will net over $1 billion dollars and not by hiding the ball or sales tactics but by being open and honest with each landowner. Empowering them to make their own decision based on facts. I imagine you want to do the same, by if you don't even know the affiliation between Dorado and AEUM and how AEUM set you up lst year, how can you advise a landowner on anything regarding what your company does? I don't mean to be antagonistic, it would just be nice if the truth was told. You can respond however you like, but I will put down as much money as you wish and sit across a table from you and see who the general landowner believes. I'm not soliciting any landowner and I assure you no business will be conducted on my end, but at some point somebody has to have the knowledge, backing and wherewithal to stop the semantics and give the landowners the facts and let them make an educated decision. I read approximately 5,0000 pages a week of S-1's, 10-K's, 8-k', and most recent presentations and every couple of weeks I meet with most major CEO's just to discuss state of the Union type affairs. While I understand your need to respond, but anybody can look up your assignments to AEU and I imagine as land manager, you have to defend your territory, but my offer stands, any public forum, no limit on the bet, and see what people think after you educate them and not scare them.

• ▶ Reply

Permalink Reply by Puzzled on March 25, 2015 at 8:22am

Good advice but some of the oil and gas companies don't deal with the public...they refer you back to their middleman........

• ▶ Reply

Permalink Reply by nc man on March 25, 2015 at 8:52am

Thank---you--Matt!!

I agree but understand why the others are trying to drum up business. It is just a way of survival/life. If I were in their position, I, too, would jump in to get a piece of the pie.

Your advice is the smartest. Why pay a middle man when, as you say, when we can go directly to the source.

I sent a note to Lindsey Fixley, at AEU, a few days ago, and asked a few questions. Asked if Lindsey(female or male?) had any idea if AEU would be renewing the lease with us next year, when it expires(10/16). Was told, "unsure if AEU is going to renew your lease next year". Also, said "AEU is not obligated to do so(renew). I guess we do not have an extension on our lease.

If no renewal with AEU next year,then what? How do you go looking for someone to buy our lease, if we decide not to sell our mineral rights at the low prices being offered now?

Would Lindsey Fixley be someone to ask about AEUM  being interested in buying our minerals? Might get better offer?? Or might that open up another can of worms? Let them come to me?

After getting the proposal letter from AEUM, on 3/19, stating AEUM is willing to make an offer on our O/G interests, we called and talked to a Rhett Roberts, an associate landman, for AEUM, Oklahoma  City, about giving us a quote on buying our minerals. He said he would get back to us on Monday(3/23) of this week but no phone call so far.

What might we use as a bargaining tool? Just tell him our acceptable selling price? I have learned that the higher your royalties are, the better price you should get, when selling the mineral rights. From our lease we got 20% royalties--$5,000 an acre.

Thanks for your thoughts!

nc man

• ▶ Reply

Permalink Reply by Robert Bauer on March 25, 2015 at 10:43am

Hey Matt,
Just wanted to say I totally agree with you, I have no dog in this fight and I'm not in the brokerage business and and I don't do representation anymore. I watch the blog a lot just to see what landowners are thinking, wonder what they heard or were told to have that thought process, and just find the commentary interesting. I have never posted before on the blog bc despite a momentary lapse of judgement, offering insight on matters that I have information the landowner may not just looks as if I am soliciting and to respond to someone actually soliciting does no one on the blog any good. I really don't know why I chose to post and if I was going to issue a response, it should have been if a landowner had a genuine question. It's not like this was the first time some misinformation has bothered me, just over the past few months the misinformation has seemed to be more egregious, but no matter, I really don't know why I would post much less give some kind of rebuttal, just asking for drama. I diversely apologize if my posts were taken as a solicitation of any kind, just hoped to help provide a more even playing field. Again, I am not in the brokerage business, I stopped probono representation and outside a rare exception, I don't do informational meetings or simillar panels. I hope all goes well in this matter. Again, Matt you are 100% correct that I have no dog in this fight and I should allow my work to speak for itself, not me. Hope all is well

• ▶ Reply

Permalink Reply by nc man on March 26, 2015 at 8:56am

Matt.

I do appreciate your reply, again. No, $ is not a problem and I think, after all this back and forth from everyone(and I do appreciate all the input) I will just wait and see what happens next year.

It is just that I am not getting any younger and felt a lump sum, now, would be the way to go, instead of a long, drawn out process and all the frustrations that go with it! That is basically why I brought up the subject in the first place.

Learned a lot. ------ Y'all know a lot more about the O/G industry, than I do!!

nc man

• ▶ Reply

• ‹ Previous
• 1
• 2
• 3
• 4
• 5
• Next ›
• Page