Replies to This Discussion

Permalink Reply by 09bp5t05myjl3 on September 27, 2011 at 2:36pm

Sandi

 

 

    I just sent you some info in your e mail

Permalink Reply by Janice Lanphere Hancharick on September 29, 2011 at 5:04am

Having put out considerable information and insight into leasing issues, whether for gas/oil, ROW (right of ways), and seismic testing contracts, hopefully it has all provided food for thought and general directions to follow in getting a group started.  When this shale play began across our multi-state region, all most folks were familiar with were the old-timey "boiler-plate specials" our forefathers were offered.  Pleasant company representatives showed up with what they called "standard leases" (standard in the last century or two), may have thrown in some promises (none of which had to appear on the actual lease document), and pointed out numbers on the first page that looked good if you didn't know the value of your resources. Filling the back pages with legal-ese that by the end of the lease negated any good that could have come out of it is an oft-used tactic.  More is going on behind the scenes than most can imagine.  It takes more than a few smart people in a group to stand face to face and  negotiate with the major firms that develop and produce the world's supply of gas, oil, and  condensates ... all energy sources with which modern society cannot function. DO HOMEWORK. RESEARCH. Find representation for your group that is experienced on a regular basis with such negotiations.  There will be give and take, that's why it's called "negotiations".  There is more strategy involved than in a world-class chess/checkers tournament. 

Forming a group is the very first step. Educating the members will be an on-going  process because  technology and game-changers present  facts that are ever-changing.  Searching around for the representation should involve group leaders in meetings with possible firms.  After a few such conversations, one will stand out!  It will be able to share results of what it has done for other groups. All this takes time to accomplish, and in the meantime leasing companies will be hot on everyone's doorstep saying "Sign, sign .. or we'll move on!"  Guess what?  They wouldn't be there in the first place if you didn't have something of value. They'll be back for your group. 

When reading about groups that are non-profit, stop and think.  I'll bet everyone in that group wants to make money ... to profit from something that cost them nothing.  Getting top-notch representation will cost, but it's the leasing company that will be cuttting the checks.  If a valueable service is rendered  why wouldn't those involved get compensation?  We pay doctors, truck drivers, teachers, miners,  hairdressers, and countless others because they render a service.  Your choices will be many along the way to a good lease that provides you with maximum pay-out, protections and benefits.   In a few sad cases I have thought that folks got what they deserved (often the greed factor can be the motivator), but ususally I believe that most rushing to sign and wanting to believe the promises just didn't know better.  Good luck to all who put in great effort to make leasing a positive experience in their area.

JLHancharick  4-County Leasing Group    jlhanch@nc.rr.com

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