First and foremost the intent of my post is to circulate information for the Mineral Owner. Before I get too far off the mark, I am a relative "newbie" to this business, and really on the outside looking in so to speak, that's in all honestly and being forthright, However, I do have a lot of contacts and connections within the business. Recently I have had the pleasure of getting to know both the MO's and representatives of the OG Industry. I have also been involved in lease negotiations from the initial contact phase clear to the lease signings and getting the deal done!

Its always very interesting watching the negotiation, the MO asking for what they want, the counter offers from the OG Reps, to and fro. Sometimes it goes very well which is the case more often than not, but sometimes it doesnt, and understandably so! I think its very important for both parties to realize that each have their own lines drawn within the sand so to speak for reasons on both sides.

My background is within Law Enforcement for over 25 years, in a myriad of positions, but most notably as a Hostage Negotiator which relates me if you will to this business. When I reflect upon the LE negotiations and link them to the OG negotiations they are in themselves essentially the same process. Obviously the Hostage is now the O&G beneath the surface. The MO wants a ransom for the OG from the operator, not in a bad way of course because quite frankly they own the minerals anyways obviously. However, the negotiation process is no different than that of LE. 

The point is for all sides to realize that in order to get the deal done both sides have to get what they each want. If "hardball" is played by either side then its likely not to result in a "freeing" of the O&G, which is certainly obvious. I can tell you all from years of negotiation experience its always best to protect your interest, establish a rapport with one another, be forthright, understand not only your own interest but that of the other side as well. It truly goes a very long way in getting a successful negotiation done. After all....isn't it simply all about getting it done!