Shell drops the floor out of Lease Offer

My dad has a lease run out in June, and he had a landman stop yesterday. Apparently, they are offering $1,000 per acre.. LMFAO

 

Does Shell really think the landowners that signed the original BS leases are gonna come out and sign for that after their neighbors just signed for $3,250 6 months ago? I know, I know, it's the old they don't have competition. Tell you what, add up the acreage of all the old leases coming due, along with current holdouts, and they just found competiton. I really hope that landowners, without LAWYERS can keep communication lines open and not settle for BS lowball offers....

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Permalink Reply by Lance Nimmo on April 23, 2013 at 6:06am

I teach, so I think when farming slows in mid June I may do just that...

Permalink Reply by John OBrien, landowner advocate on April 24, 2013 at 4:42am

Tim, 

Great advice, I agree completely.  As a group you may (should) be able to get a good attorney to work at a very reasonable rate due to volume.  That way you get the best of both worlds, professional advice and council, and the power of a large acreage volume to lure the best offer.

Good luck to you Lance

Permalink Reply by paleface on April 23, 2013 at 5:30am

 Shell is droping leases in Tioga county PA,THE 1000.00 they offerd is more than there offering in Tioga co.

Permalink Reply by Lance Nimmo on April 23, 2013 at 6:05am

Tiogo County has already been transitioned to production, correct? Lawrence is still in exploratory, which mean almost all of the land is leased, but not HBP. That makes a big diference. With us, leases will expire and become renewable. HBP, not so much. My thoughts..... Plus, Tioga doesn't have the Utica if memory serves me...

Permalink Reply by Fred Flintlock on April 23, 2013 at 6:53am

What do you expect to happen Lance? Your dad won't sign or you think Shell will up the offer?

Permalink Reply by Lance Nimmo on April 23, 2013 at 6:59am

I know for $1k, there will be no ink. As for Shell, I cannot speak on behalf of them. I know there are at least 60 some landowners coming out of old East leases this year. I will put some time in on the county database, and encourage them not to take the chicken feed. If everyone stays put, the offer will have to go up. Remember, when they went around hoodwinking in 2008, they were just going after larger parcels, so the acreage will be large.....

Permalink Reply by Eric on April 23, 2013 at 7:57am

Lance while I'm mostly with you on your reference of "professional service", a lot of lawyers have gained a bad rap with how these land deals are formed and their payment methods.  I was raised with the belief that a man should be paid for the work he has into it and that is not the case in these land groups at times.  good luck and i would try to find someone with good advice and willing to work on a per hour basis. 

Permalink Reply by Lance Nimmo on April 23, 2013 at 8:10am

Thanks. Legal representation, in my opinion, would only be needed at the very end when we are close. There are MANY land group contracts available, as I have copies. I would hope that one of the parties interested would be an attorney and do some leg work pro bono. (good luck, lol)

2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on May 13, 2013 at 11:19pm

Lance - wdnm, llnh, dlnw...

*work like you don't need the money, laugh like you've never been hurt, dance like no one is watching...how'd I do with the 'chat language/shortening? THAT one is all my own...I'm working on my 'shorthand' so that most of these kids don't have to torture themselves with my 'long-g-g...hand'...

...O?eho (Opinions? - everybody has one)...how your year finishes up WELL...and it's not too cold or wet for you to get done what you need to get done on your spread.

haid (how am I doing?)

As one light lights another, nor grows less - so nobleness enkindles nobleness.

James Burke Connections #10 - Yesterday, Tomorrow and You - YouTube

Permalink Reply by Trapper on August 31, 2013 at 3:15am

Lance, in the County Recorders site I see a recent release of lease granted by Shell to a Nimmo. Is this your dad? If so , I take it they did not move the offer upward?

Have you had any offers from anyone else or is Shell the only game in your neck of the woods? Have you tried to contact Hilcorp? I know they have retained some leaseholds that are surrounded by Shell.

Permalink Reply by Trapper on April 23, 2013 at 9:35am

Is his current lease with East? I know for a fact that East did not do title searches on all of their leases here in Lawrence County. Alot of people in New Beaver were paid in spite of the fact that Cemex (was Medusa Cement) owns the mineral rights. Just throwing the possibility out there that there may be title issues? I think East was just amassing as many leaseholds as possible to fatten the buyout price for Shell. As it turnes out Shell holds all rights to Cemex mineral holdings as they are uncovered by title searches.

Permalink Reply by Lance Nimmo on April 24, 2013 at 1:10am

Definately no title issues. Slippery Rock Twp.

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