Update on renewal from Ascent

Sorry to start another page for this update but I cannot find a place on the other sites to reply??

Just so anyone new reading this understands what I am about to write, here is a short synopsis of what I am referring to.

Our lease , with Ascent is up in Oct. of this year.

A company called Purple Land Management contacted my brother in Feb., there are 3 of us on the lease, and offered $1,000 and acrea of a one year lease. 

Came to the house without calling first and my sister-in-law was having a spinal operation the next day or so, and my brother did not have the time to really talk.

My brother told him to come back and he did about 3 weeeks later and the offer had gone down to $500.00 for a year lease.

Anyway, Dustin from the Purple Land Management contacted my brother, a few days ago, and informed him that another company, Halo, would be negotiating our lease.

He would no longer be involved with us.

The guy from Purple Land said he has too many other leases throughout Guernsey County to take care of ours??

Is anyone familiar with this Halo management?

Told my brother Halo would be contacting him in the near future.

Will keep y'all informed about this conversation.

Should be interesting.

nc man

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Permalink Reply by Jefferson on March 22, 2016 at 10:31am

Well the Halo Land Management person offered exactly the same as the Purple Land Management guy .  I guess they didn't understand not interested the first time so they sent another company.  They are also unable to negotiate anything.  

Permalink Reply by nc man on March 22, 2016 at 10:48am

We are going to try to contact Ascent, directly, and see what we can get from them as far as an offer.

Halo just wants their cut, if they can get some of us to be suckers and go along with this offer.

Halo also, contacted my brother and it was the same as Purlpe's offer, also, and he said ---no thanks.

Told him another o/g company would pick us up and he(Halo rep) said don't count on it.

Sounds likescare tactic to me!

Just say--------NO!

Permalink Reply by Jefferson on March 22, 2016 at 11:37am

I really think this whole thing is a scare tactic.  In our lease, they can renew us by simply giving the same amount of money at the end of the 5 years.  Of course, if we sign what they are offering us now they will save a considerable amount of money and be able to hold us HBP really easily.  We are willing to just let our lease expire if necessary.  

Permalink Reply by nc man on March 23, 2016 at 2:18am

Hi Jefferson!

Yes, we, too, are willing to let the lease run out if they opt  to not re-lease our original lease or at least come up with a reasonable amount per acre and still give us a 5 year lease.

They want us to sign for a year and then hold us HBP, no doubt !

They must think we are desperate!

Or stupid.

I hope, if all involved with Ascent will stick together and just say, no, we can make a loud enough statement to Ascent that they just might come up with a much fairer, long term offer.

Oil prices per barrel are going up.

I think $40-$41 a barrel and rising.

Say no and just wait it out!

nc man

Permalink Reply by Ohio Brett on April 12, 2016 at 9:32am

I made them renew my current lease.  I had a 5 year option to extend that came up in October with Chesapeake. They tried to pressure me into signing something new, starting in August, but I held out because I figured that I would just wait this bad economy out if they let it expire.......Then, I would gamble and see what I got offered by other companies.  Couldn't hurt.  Why would I trade my 2009  lease money for 2015 prices?  Anyway, they told me that I would be developed faster if I signed and that they "were ready to go."

Well, long story short, they ended up renewing me at my 2009 lease price in October and nothing has happened since.  I have always held out, and they have always paid.  Everything from an amendment to a larger unit to signing a seismic right of way.  They threaten to cut me out, but I have 200 acres and they need me.  If you have less than 20, they may be able to do it, but otherwise it costs them more to cut you than to keep you.

Never heard of these Halo guys, but Purple has a bad rep around my property.  Ascent used to be American Energy, and all them companies have tried to throw different land guys at me over the years.  Bottom line is that they all work for the same company at one point or another.  They just change company names (Purple, Orange, Halo, DPS.....hell, I forget them all) and bring in new landmen when the well runs dry on negotiations....so to speak.

It's your choice because it's your land.  I put a lot of protections in my lease for my land and I hope you guys do the same.

Permalink Reply by bo boboski on April 12, 2016 at 10:07am

You go,Brett. Let this be a lesson for the restofus.

Permalink Reply by Jefferson on April 12, 2016 at 11:14am

Thanks for the info Brett.  We are holding out until actually the lease expires - we have a decent lease with protections and we are not willing to give that up.  Purple came first told them no.  Then a Halo guy came told him no.  Halo guy told me maybe some of his other colleagues from Halo would call me  - not gonna work gonna tell them no too! 

Permalink Reply by Ohio Brett on April 13, 2016 at 4:03am

It worked out well for me, Jefferson.  With that said, everyone has different circumstances.  I think it's all a matter of your personal financial goals and what works best for each landowner.  In other words, I don't think that leasing, amendments,etc., have a "one-size fits all" answer.  

From my personal experience, landmen have one job....getting the landowner to sign whatever is put in front of them, no matter how they present it.  Whether they are honest guys or not, is irrelevant.  An honest landman can can give you a garbage lease or amendment just as good as a dishonest one. As landowners, it is our job to look at the document and not the guy handing it to us.    

Take whatever they give you and read it closely.  If you have to, in order to understand it, look at one paragraph a day! Look at each and every word. Remember that words like "must" or "may" can create a big difference.  When it says "must," then it is required.  When it says "may," then it is an option. Just an example of how simple words can be pretty significant.

Just my two cents.

Permalink Reply by Robert Bond on April 13, 2016 at 5:39am

Also watch for the words Can, May and Shall.  Similar but very different meanings in a contract or lease.

Permalink Reply by G.H. on April 13, 2016 at 7:14am

It is not irrelevant whether they are honest or not.  An honest landman will tell you what the document actually says/means if you ask them, or maybe they'll tell you you should get someone else to explain it.  A dishonest/unethical one will say whatever he thinks will get you to sign it, whether it's true or not.  I have seen both.

 You are correct in saying that it is the goal of both to get you to sign it. You are also correct in saying that you can or may receive the same lease to sign whether the landman is honest or dishonest.  But I think the distinction is still important for reasons I explaiend above.

Permalink Reply by Ohio Brett on April 13, 2016 at 8:58am

G.H.,

The document (lease, amendment, etc.) is what it is.  A landowner shouldn't be relying on a landman to explain it to them, regardless of  whether or not they are deemed honest or dishonest. It would be like buying a house without a professional inspection, and basing the decision of your purchase on the word of the homeowner or real estate agent selling you the home. 

99% of the landmen out there aren't lawyers.  The documents being presented by operators to landowners are cleverly written by o & g attorneys.  Most Landmen are interpreting the documents just as any other guy on the street.  Therefore, it is irrelevant whether they are honest or dishonest. Taking the word of an honest landman can get you in just as much of a pickle as a dishonest landman. That's my point.

If you believe any of those guys are looking out for your best interest, I would venture to say you are mistaken.  Honest or dishonest.  

Permalink Reply by G.H. on April 13, 2016 at 10:55am

I agree with what you are saying for the most part.  But a lot of landmen will understand the documents better than your average Joe.  However, it would not be wise to rely on them to explain the whole thing to you if you don't understand it, whether they are honest or dishonest.  Definitely not saying they are looking out for landowners interest.  I know who is paying them.

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