Hey! lease offers something to keep in mind

Alot of people think the going rate in their area is say like $2000 and stuff like that...but you have to remember everybody doesnt post on here, there are lots that dont even know this website exsist.  Others maybe gun shy about posting they got lots of money.  You have to pull up new leases in your area... I did and found its more like $4000 to $4500.. I have seen the leases myself, not jsut taking word of mouth.  so the point is, look for yourself before you assume all offers are only what the people are posting for that area.

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Permalink Reply by Mike Knapp on January 24, 2011 at 5:11am

Most companies aren't going to put such terms in their recordable documents.  Most will put those numbers in an unrecorded addendum or they don't record the lease, just a memorandum of lease.  

Permalink Reply by monica chilcott on January 25, 2011 at 10:18am

What company was paying that kind of money and where?

 

Permalink Reply by Oil and Gas nightmare on February 8, 2011 at 1:02am
Hey guys I have been busy with college.. i will post an update this afternoon :)
Permalink Reply by Keith Mauck (Site Publisher) on January 25, 2011 at 3:33pm

I am getting ready for the official launch of shalebiz.com, PArt of the site is a lease offer database. Feel free to enter and search lease offers here.

 

http://www.shalebiz.com/pages.php?page=11

Permalink Reply by monica chilcott on January 27, 2011 at 5:19am
can you add what companies make the offer, then you know who is in your area
Permalink Reply by Oil and Gas nightmare on May 5, 2011 at 4:12pm
 Hi..sorry its been a while, I honetly havent been on here.. Rice, Chspk, Tanglewood so far, others I would have to get my hard dirve out where I transfered the copies of lease but I will get it back to you...its really not uncommon, all of these I have are in Greene county various places, can give more details soon sorry, gotta go dig up info :)
Permalink Reply by Oil and Gas nightmare on May 14, 2011 at 8:31am
Dominion is also very active in my area, they are partnered with CNX/Consol energy...
Permalink Reply by Robin Fehrenbach Scala on January 26, 2011 at 2:58pm

I have found in the last three years that the majority of people keep the information to themselves. Not sure exactly what their motives are, maybe just accustomed to keeping their financial info quiet.

 

Granted, it does not help others when they go to negotiate, that's for sure. In the beginning, early 2008, we all posted our lease offers openly and there was a lot of information to be had. After so many people got screwed (not paid) by many O&Gs in the June 2008 time frame, the info started to drop off. 

 

Then when the big group deals came out and the info was printed by local papers, those numbers were the only ones anyone would accept hearing. My how things have changed since then. In the total silence since then, no one seems willing to offer up any information at all. Trying to avoid the jinx effect, maybe?

 

Lynn, you are right that the rates are not what is being posted, but as Mike Knapp says, that information is not on the memorandum of lease that is recorded in the courthouse. Every now and then you will see the full lease recorded, but that would be the exception rather than the rule.

 

I have no idea what the answer is, but I don't expect things to change in that department anytime soon. People just don't want to let everyone know what they got. So, the moral here is not to believe anything a landman tells you , and always always negotiate until you get an amount twice what they offered to begin with (that's MY story and I'm sticking with it!)

Permalink Reply by Oil and Gas nightmare on May 5, 2011 at 4:15pm
  I got some from the court house believe it or not..haha old school court house what can I say.. BUT I pulled what you are talking about called the people and asked for the info and a copy if they didnt mind..I explained my situation, and everybody was super glad to help!
Permalink Reply by Oil and Gas nightmare on May 14, 2011 at 8:39am

 

Also as hard is this is to believe perhaps, I can promise you if go to the Greene County court house there are leases there with the entire information the signing bonus amount and so forth... I have them.  maybe they shouldn’t do it but  it is there.   And  I have nothing to gain by “lying” about it, my goal is to help, not to mislead. On the ones that just had the notice of a lease if you will, I contacted the people by looking them up based on the address on deeds and leases.  Everyone I have spoken with has been very nice and very helpful, as long as you explain that you are a mineral rights owner looking to see what’s out there and also find out if they regret anything about who they signed with.  I was fortunate enough to these guys provide me with their entire lease, with their terms on them, and bonus/ royalty rate.  All you have to do is be persistent, it does pay off!

Permalink Reply by Sarah Violet on January 26, 2011 at 4:30pm

Ok, can someone explain to me why there is such a big difference here ?

I have a lease that was signed in 06, due to expire 11/2011. The middle of 12/ 2010 I received extension offer in the mail. Offer is 3 years , with $ 1,200.00 per NET mineral acre ( 11A )  15% R. I have not signed yet.

I found out over the past week-end my neighbor whose property borders mine , she dose not have a prior lease ,

like me. But in the fall of 2010 she was offered $ 2,500.00 per acre ( 6 & 1/2 A ) for 5 years,  18 % R , she has not signed yet either.   We have two different Land Men .  This seams backwards to me. With these types of offers it's no wonder people are confused.

Permalink Reply by Robin Fehrenbach Scala on January 27, 2011 at 1:48am

Sarah, that is standard procedure.

Landmen from various companies have been caught making very low offers, saying "Your neighbor signed this lease" and then people would check with their neighbor and find out they NEVER signed ANY lease. It is all about lying to seal the deal. 

 

This is a prime reason why everyone needs to keep in touch with neighbors and use social networking (see the topic about social networking too)

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