Great River Lease with Des

Not much being said about this lease that Des has put togother?  Does not look very owner friendly?  Money and Royality good but looks like they capture everything ever found under your property.  Not limited to Utica and Marcellus.  It also looks like they can pretty much do anything  deemed necessary on your property.

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Permalink Reply by Rick on August 9, 2013 at 1:12pm

I hear that Rice is signing at same place smae time anyone know what they are doing?

Permalink Reply by Renee E. Dorsey on August 10, 2013 at 4:10am

Here is the email I received yesterday:

"Anyone Coming to the signing needs to use the back entrance by the cafeteria for the middle school. The scumbags at Rice Energy have weaseled their way into having the front for an impromptu signing to interfere with our signing. Talk about a bush league low down dirty mess. So pass the word that you need to enter at the back of the building near the football field today and tomorrow and pass the word about how low a bunch of people that Rice energy is."

 

Permalink Reply by Landowner1 on August 10, 2013 at 5:23am

For those of us not from the area, where was the lease signing held?

What Counties and Townships were included in the proposed deal?

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on August 10, 2013 at 9:04am
Gotta admire the New York sized balls those Rice guys evidently have. Seriously. That's pretty amazing that they showed up and did that.
Permalink Reply by Garfield on August 12, 2013 at 6:15pm

Yea that was some low down trick they pulled, funny in a way kinda like a sideshow at a carnival. 

Come and get it all the FREE DONUTS you want at the back entrance cafeteria!

Wonder if RICE grabbed some freebie donuts at GREAT RIVER'S Expense.

The "end result" is RICE'S way of "Market Enhancement" for the donuts.

Permalink Reply by Finnbear on October 6, 2016 at 3:05pm

This thread bears reading again, considering recent events.

Permalink Reply by Paul Butler on October 7, 2016 at 2:35am

Des’ profound expertise, in all its glory, is on full display in his post.

Des’ analysis of Market Enhancement language speaks volumes.

I bet Des studied Advanced Carnival Barking with Dan Rice and the Vantage boys while in “Expert School.”

 

Permalink Reply by Paul Butler on October 7, 2016 at 3:51am

That lease Des negotiated is an abomination from the landowners point of view.

A real expert would have included "through and to language" i.e., no deductions through the pipeline and to the point of sale.

Check out this UT lease written to benefit the mineral owner from a real expert.

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Permalink Reply by bo boboski on October 7, 2016 at 10:18am

that's a good one,paul. I will have to print it out. save if in case the need comes up. so should anyone else thinking of leasing in the near future. in ohio; as in texas !

Permalink Reply by Paul Butler on October 7, 2016 at 11:01am

It's a fair lease for both the Lessor and Lessee.

UT has a vast oil & gas portfolio and hundreds of these leases are signed every year.

It will prevent the Lessee from playing scumbag.

It's clauses are readily adaptable to any lease nationwide.

Permalink Reply by Des Wertheimer on October 7, 2016 at 11:50am
Fellas, you have no idea what goes on in a negotiation. Period Plus, the way we worked things was to bring the best offer we could get from the oil company and present it to the landowner. If you had ever attended one of my meetings, which you probably had not, you would know how things worked. So, to you who can only criticize, and who have never or will never negotiate anything, here's how things worked.
My team would negotiate with the prospective bidders and bring the offer/s to the group. We would explain the good points and the points that were of concern. We pass on our opinion and then let the group decide. They vote to take the lease or not. They decided the pluses far outweighed the negatives and decided to accept the lease. Remember, this was the first and only lease ever negotiated that paid the landowner a fairly large sum at signing which was $1,000.00 dollars per parcel. I know landowners who walked out of there with checks in excess of $5,000.00 dollars or more. So, to those of you who think you know something, let's see how you would fare negotiating a deal.

As for market enhancement, many of you think it should never be in a lease. With every company I have met with, over 30 in fact, when I asked what their opinion Was on market enhancement and its inclusion or exclusion, they all had the same conclusion.
Since the product extracted in not sellable at the wellhead , there is no such thing as wellhead price. All product has to be sent through a treatment facility to make the product into a marketable one. So, all products have to be enhanced. That is why market enhance is in every contract.
To go on, they stated that if market enhancement is not in the contract, the oil company does not have to pay the landowner on any secondary products that are produced through the enhancement process. And to prove that point landowners in PA lost a suit against Chesapeake for this very reason. So, if market enhancement is not in your contract the oil company doesn't have to pay you. We wanted to make sure the landowners got all the compensation they deserved. That's the facts fellas, so Let me know when you've sat across the table from 4 or 5 lawyers representing anything and negotiated anything. Then let's see what you come up with.
Permalink Reply by Des Wertheimer on October 7, 2016 at 12:14pm
Yes, the lease was for the University of Texas. But I've never seen this lease or even parts of this lease ever and I have copies of several dozen leases signed with various companies in the Appalachian basin.
To say this lease is fair to lessee and lessor, well is a joke. This is extremely slanted toward UT. I seriously doubt that this lease is ever used outside of government intities. I showed this to several contacts that I have in Texas including a couple of oil and gas attorneys and to a person they laughed at the idea that this document is widely used. As a matter of fact, the one stated that very few companies will do business with UT or any other government entity due to their outrageous requirements. Not only the lease, but they stated that there were many other factors that made working with government intities unrealistic.
So is it a strong lease. Sure it is for the landowner. Will it ever get used here in the Utica. Never!!!!!!
No chance. I've seen the lease the DONR uses and it is in no way that strict of a document. Should it be? Maybe, would any oil company in its right mind sign it? Doubtful
In my experience 95% of landowners do not care about more that 3 or 4 things on a lease. Truthfully and to my surprize, most landowners would sign toilet paper if the money was right.
I spent three years holding more than 200 meetings in eight counties. And after all that, I was shocked at what little attention was paid if the money was good.
Were some of the leases I presented lousy? Yes they were and several of them were turned down. It was not my place to turn them down. I had a legal responsibility to present each offer to the prospective group. Several of the companies even sent people along to make sure I did. If I didn't, I could've been sued.
So when you decide to criticize someone, maybe you should have a few facts first don't you think.d

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