LPG%20-%20Mason%2C%20Brandon%20P%20and%20Katie%20E%20%20%20%2056.68...I was recently contacted by Antero Resources about doing a top lease on my farm.  Any ideas?  They are pretty much unwilling to do any negotiating.  I tried a pugh clause and No deductions.  They wouldn't budge on either.   I have attached a copy of the agreement for anyone interested in looking it over for their benefit. 

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They are looking for low hanging fruit. They want everything and won't give up anything this first go around. So not to appear " a hostile landowner" I would tell them" thanks but we are not in a hurry as more and more production results are available and the current lease has another year and a half until it expires."

I did read the lease and addendum. As usual the intent is obscure and ambiguous, leaving lawyers to interpret meanings as required. So said it was not in your favor. Find a lease that is fair and keep that filed away until the day comes when they return to deal more fairly with you.  

Top lease means that you already have a lease which is probably about to expire.   Who is that lease with and is it expiring soon?

I did a very quick read of the lease and there are several things I would not go for.  If you already have a lease at least compare the two to see the differences.   Will take some time later this  evening to list some things I would not be comfortable with in the copy that you have posted.

Is there is place on this site to view example leases.  Ones that have been changed to help the landowner?  It would be nice to have a place for people to upload their leases for the benefit of others.  Maybe someone can upload  one of theirs for me to compare with.    My current lease expires Oct. 2016.   And it is held by triad hunter. (Magnum Hunter) 

Hey Brandon,
I know this forum is great to get interactive ideas, but you don't always get the bigger picture of what or why Antero would want to take a top lease nearly a year and a half out but you can use the various posts to connect the dots. Most companies will do a top lease max 90 days out, but will go further out bc their biggest risk is 10% of the bonus money, but connecting the dots and comparing it up with an archived presentation that has been taken down from Antero's site that gave drilling plans for the next two years, the temporary defeat of forced pooling (Probably going to get through but with its defeat first time around, it probably won't be as easy of a process as operators would like), and the fact that Magnum Hunter (Parent of Triad Hunter)have very little cash on hand to prevent drilling and though Gary Evans is on TV all the time offering the upside potential of Magnum Hunter, I know their CEO and their CFO actually lives just down the street from me, there are only so many rabbits that can be pulled out, and with Magnum being either the most levered company or second most in a very, very levered industry, they don't have the options that several other companies do to tap the debt markets bc they are already in violation of their debt covenants and with as many preferred's they have outstanding, with $86 million going just to interest, and all of the lawsuits outstanding and title issues that need to be corrected, it's an easy and safe bet for Antero. I think it was a great decision to post the question on this forum, bc to make the best decision before executing an agreement, it's nice to know as much of the information as possible. If you want to know some specific information pertaining to your specific tract, what future plans have been thrown out there and why Antero is trying to top lease this far in advance, I don't mind providing you with that information. I don't often post, so I am not real sure how to offer my contact outside the public forum, but you can reach me on my cell 740-827-7516


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