Misleading Shell landman

Had a Shell landman stop by the house the other day. One of the tricks he tried was to flip open his folder and show me what he said was a check for the full amount, and then quickly close the folder.  I asked him to re-open the folder and when he did, I saw it wasn't a check but a bank draft. Big difference. A draft is more of a promissory note saying that they will release the funds at some promised point...like after the title work is done after 90 working days. And if they don't release the money, it can be quite a legal fight.

When I said "Thats not a check, its a bank draft" he said "Yes but you can take it straight to the bank" again implying that it could be cashed immediately. When I told him that I cannot cash it until the funds were released many months later, he changed the subject.

I had met with a bank's financial adviser and he told me that they had an elderly couple come with such a draft and told him they had just ordered a new car, thinking they could just deposit the draft like a check since the landman had called it a check. They had to call the dealer and cancelled the order.

Be very careful in dealing with these landmen.  You have to parse everything they say.  After meeting this guy, my local politicians are looking much better.

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Permalink Reply by twitch on November 1, 2011 at 4:52pm

yea, but there are alot of people who signed a lease, because their laywer told them all kinds of stuff they now know is BS.

1. we (laywer's representing the group) believe this is the best you can do, due to coal issues.

2. they (oil & gas Co) won't sell your lease.

3. they (oil & gas Co) are going to drill in 3 years so you need to sign this lease, if you want a well.

4 told the group, that there is no one else intrested in the group, because they (other O&G companies) never got in touch with them.

5 this is the big one. CHK. is NOT intrested in any property in belmont county. CHK will NOT be drilling wells or signing leases in belmont co.

so don't think that it's just landmen that blow smoke up your a**  your own Atty. will do it to.

just ask anyone in the belmont co landowners group 1. there is a whole lot of people from that group that think their Atty's were in bed with gulfport,

Permalink Reply by Finnbear on November 2, 2011 at 2:06am
Which Belmont county group are you speaking of?
Permalink Reply by twitch on November 2, 2011 at 12:26pm
Finnbear, it is the belmont county landowners group #1 that was headed up by rokisky.
Permalink Reply by Finnbear on November 2, 2011 at 1:53pm
And I thought it was just Wishgard that was in bed with Gulfport.
Permalink Reply by George Brown on November 2, 2011 at 3:30am
Could be a shady attorney, or just a knucklehead.  Don't think that all attorneys, doctors, etc. are intelligent and good at what they do.  Half of them graduated in the bottom half of their respective classes.
Janice Lanphere HancharickPermalink Reply by Janice Lanphere Hancharick on November 2, 2011 at 6:19am
I like your reply, George.  Shady and knucklehead may be good descriptions for some, but here's another description ... inexperienced.  Folks go to an att'y and pay for an answer so they're given one.  That att'y may be a great estate lawyer, medical malpractice, real estate, general family att'y ... who knows?  But that person will have an answer.  Gas atty's, the top ones, most often work for the gas industry or a related one.  The few who have always practiced gas/oil law for the common man are spread mighty thin across the "shale states", and the companies know it.  Twitch made good points.  Whatever crosses this site pertaining to crazy tales is the tip of the iceberg.  Leasing in a hurry, not in a group, is about as wise as jumping in front of a speeding freight train.  Anyone up for a "moving" experience?
Permalink Reply by Jim Litwinowicz on November 2, 2011 at 6:39am

I think a big problem with attorneys is that many of them have worked on old shallow well leases and don't realize that these new ells are a completely different animal. There are many issues that they have never seen that make a huge difference over the life of a well/lease. And so much more money is at stake that it is drawing in many unscrupulous people that write leases with a lot of loopholes and trapdoors.

So even one that has experience and has reviewed hundreds pf leases may not be up to speed on these leases.  Its not they are evil or dumb, just behind the times.

 

 

 

Permalink Reply by James Brink, Esq. on November 2, 2011 at 1:04pm
Not entirely true.  There are a few attorneys among us who have worked for the gas companies in the past and now represent the landowners.  Is that supposed to be wrong?
Permalink Reply by Finnbear on November 2, 2011 at 1:58pm
I don't think anyone said that was wrong. The sentiment is that there are too few oil and gas experienced attorneys to represent the huge numbers of affected landowners and too many inexperienced attorneys who will take your money anyway, even when they are woefully uninformed about the current state of oil and gas shale exploration in OH, PA, WV, and NY.
Janice Lanphere HancharickPermalink Reply by Janice Lanphere Hancharick on November 2, 2011 at 2:10pm
You just nailed it, Finnbear.  And if you think the situation is woeful in those states, just imagine what it's like in states not on the web's gas shale maps yet.  North Carolina is one.  Fortunately Penn State has provided info, and as in PA, NY etc., that's where it all started for the public, i.e. education.
Permalink Reply by James Brink, Esq. on November 3, 2011 at 3:54am
That's right.  Any any lawyer who you may retain should spend the bulk of his/her time educating the folks instead of worrying how to get paid.   Also bear in mind the scope of representation you are actually getting.  This could be just as important as how much bonus payment you will receive upon the signing of the lease.
Permalink Reply by James Brink, Esq. on November 3, 2011 at 3:52am
Exactly.  That is why it is vitally important to know who you are dealing with in these matters.  Many landowners, unfortunately, are mislead by whoever brings the best donuts or hands out the flashiest brochures.  It is the integrity and honesty of the lawyers that really matters at the end of the day. 

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