Meeting with WKGD

 Were any of you in attendance at the meeting with KWGD on Monday at the PLCC. I was there and was totally surprised by the number of people in attendance. What were your thoughts about the meeting? I found it to be very informative.

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Replies to This Discussion

Permalink Reply by Red Skelton on February 19, 2012 at 8:31pm

Thanks Mickey

Permalink Reply by Billy Park Whyde on February 17, 2012 at 8:37am

 Hi was wondering what kind of a group WKGD was and if anyone can give me a bit more info on it. I am over here on the Licking / Muskingum County and at the present time are rather limited as to choices so far.Thanks congrats to your group. Billy

Permalink Reply by Philip Brutz on February 17, 2012 at 9:10am

KWGD is a law firm that has run several landowner groups in eastern OH.  They charge 5% of your signing bonus for writing the lease and putting it out to bid.  http://kwgd.com/ I would recommend them.  You may want to talk to Finnbear in Belmont or Dan in Harrison about starting your own nonprofit landowners group http://hcolg.org/HowItWorks.html.

Permalink Reply by scott peterson on February 17, 2012 at 9:16am

3% and it is paid directly by the O&G Co. not out of landowners bonus.

Permalink Reply by Philip Brutz on February 17, 2012 at 10:25am

This is from the "Closing Statement prepared by Krugliak, Wilkins, Griffiths & Dougherty Co., L.P.A ("KWGD") LegalCounsel for Landowner" page that we sign on 10/22/2011.

"EXPLANATION OF ATTORNEY FEE CALCULATION: Per your engagement letter, KWGD's attorney fees are calculated as follows: 5% X per acre signing bonus X Your Total Net Acres.  Gulfport Energy Corporation has agreed to pay all of your attorney fees."

If you look right below that statement you will see that they show your "Total Gross up Front Signing Bonus Payment from Gulfport Energy Corporation" as being $5,250 X the number of your total net acres.

You are responsible for the taxes on the gross signing bonus of $5,250 not the net $5,000.

Permalink Reply by scott peterson on February 17, 2012 at 10:34am

Thought is was 3% Phil, sorry. But regardless it is net of the $5,000 acre we signed for paid by the O & G. The 5% is also tax deductible to the landowner even though we didnt directly pay it.

Permalink Reply by Philip Brutz on February 17, 2012 at 10:38am

Also reminding everyone that we have to make quarterly tax payments this year or you will get a penalty. 

Permalink Reply by DM on February 17, 2012 at 10:44am

Any harm in paying the taxes in full with one payment?

Permalink Reply by Philip Brutz on February 17, 2012 at 11:05am

You could pay one lump sum this April but then you would not be earning interest on that money for the rest of the year.  If you divide the bonus plus your normal income into 4 quarterly tax payments then you will at least earn some interest on the money that you owe the government.

Permalink Reply by DM on February 17, 2012 at 11:09am

Thanks Philip.  I hadn't thought of that.  I was thinking about just paying it all up front so I would be done with it.  I guess it would make a substantial difference depending on how big your check is.

Permalink Reply by scott peterson on February 17, 2012 at 10:46am

Hate that! but what can ya do...

Permalink Reply by Philip Brutz on February 17, 2012 at 11:15am

I would also recommend that people consult with a good CPA.  It will probably more pay for itself.

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