ATTENTION Landowner Group Members

The IDEA of "strength in numbers (acres)" is quite apparently agreed upon by many members. Let’s not forget that a portion of those "numbers' will not have a chance at the lease being paid.  Because if your "numbers" are not connected/contiguous to other "numbers" the valve of your numbers are not as appreciated by the potential LESSEE. And an outfit, no matter how financially secure, only has so much capital it is willing to spend/risk on a project.

Hypothetical Question: What if a group of 25,000 acres agrees to sign but only 10,000 of those acres are contiguous, what would be the incentive to pay the remaining 15,000 ac scattered all over the area? After-all, 10,000 ac would be quite enough leasehold to form producing units.

Also remember lawyers are paid directly from the amount of time spent "consulting" with the client(s) board leaders and it is very profitable to drag the process along for themselves. Every time a call/letter/email/fax is addressed concerning the process of your group.....cha ching, time is being billed. Another thing to remember, your area is not the
only area.....rather than drag it out, an outfit (especially a proven profit making producer not a flipper) just may pack in it and move to another more open-minded area and spend their money there. Which would leave your area open for another round of negotiations with another outfit and the much anticipated billed time for your friends at the law firm?

Hope you didn’t have plans for the bonus money anytime soon, yet the possibilities of a royalty check. Don’t worry, that new roof on your house/barn can wait (it isn’t leaking "that bad"). You can always wait for next year’s model of the truck/tractor you were planning on buying.  Paying off those loans can also wait...after all you've been paying on them for
years already. College tuitions can be paid for by the loans you were planning on getting anyhow. Your daughter’s/son's wedding will be fine downsized, their so in love it won’t matter. Vegas....you can do just as good at the local casinos that are closer to home and are popping up everywhere, you can’t afford to take that much time off of work anyhow.



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Permalink Reply by Nelson Roe on November 18, 2011 at 5:04am

Associated Landowners of the Ohio Valey

Permalink Reply by Shower Bath on November 18, 2011 at 5:10am

Hey Schnoozie, Check their site out for yourself.

Http://alov.us/

Randy

Permalink Reply by Schnoozie on November 18, 2011 at 5:20am

I just started to poke around the ALOV website. Holy cow!

How did it finish up? did one company take all the leases? or more than one? I hope I was looking at the correct document, it seened to offer more protection. I think I saw Williams vs. DPS. were they the finalists.

Have to look up who they are. 

09bp5t05myjl3Permalink Reply by 09bp5t05myjl3 on November 18, 2011 at 4:47am

Schnoozie, that was not Jim's intent, I have pondered both going it alone and joining a group after doing a lot of research and attending meetings by flippers,  landmen landowner groups & landowners groups, I tried it alone 1st, I called 5 o&g companies in the area only 1 even returned my call and he thought I had stupid written accross my forehead, his lease lower price & royalty than what was already being signed for, So i opted for a Landowner only group and we tried it alone created our own lease using 6 other leases as blueprints and had 2 landowners that were Attorneys but not o&g atorneys, and we tried negotiating with the oil companies and got so called reps that wern't who they said or had no credibility so we hired an o&g expierienced atty firm to represent us for a very reasonable fee 2 3/4 % of up front money & 0 on royalties & renewals. which for me I think was the right thing to do but bottom line its your land & your mineral rights to handle how you feel is best but just be educated and be careful & in the end don't sign anything you don't understand every word of or get a good O&G atty to review before you sign. Remember the verbage in a lease can make or ruin the deal.

Permalink Reply by Little Cougar on November 17, 2011 at 10:07am

you probably got friended by all those people because you weren't afraid to speak up and said exactly what they were thinking too. 

Permalink Reply by Schnoozie on November 17, 2011 at 10:13am

I have 2 children and I alleady have enough friends.

Also I have to admit I have been reading these posts here all day, especially the older ones,  I got to get some work done.

Permalink Reply by Paul Martinelli on November 17, 2011 at 10:16am

can never have enough friends!  Just be cautious of their motives.

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