Update on renewal from Ascent
Sorry to start another page for this update but I cannot find a place on the other sites to reply??
Just so anyone new reading this understands what I am about to write, here is a short synopsis of what I am referring to.
Our lease , with Ascent is up in Oct. of this year.
A company called Purple Land Management contacted my brother in Feb., there are 3 of us on the lease, and offered $1,000 and acrea of a one year lease.
Came to the house without calling first and my sister-in-law was having a spinal operation the next day or so, and my brother did not have the time to really talk.
My brother told him to come back and he did about 3 weeeks later and the offer had gone down to $500.00 for a year lease.
Anyway, Dustin from the Purple Land Management contacted my brother, a few days ago, and informed him that another company, Halo, would be negotiating our lease.
He would no longer be involved with us.
The guy from Purple Land said he has too many other leases throughout Guernsey County to take care of ours??
Is anyone familiar with this Halo management?
Told my brother Halo would be contacting him in the near future.
Will keep y'all informed about this conversation.
Should be interesting.
nc man
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Replies to This Discussion
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Permalink Reply by bo boboski on -
From what I've seen,and heard,and read about in the last 4 years, It really doesn't matter if you negotiate a good,landowner friendly lease or not,the producers are gonna figure out a way to pay you about 10%, or less,one way or another. Whether they have to lie,or steal,they're gonna do it. You may actually get better royalties if you signed a 12-1/2 % with deductions lease as opposed to a 20%gross. Legal? NO. but who's watching? no one. It's done on an "honor system"! Does anybody who could do something about it care? NO. So if you think you are smart enough to negotiate a good lease, beware! you may be setting yourself up as a target for the pencil whippers . They'll find a way to get by with 10% or less one way or another. Sorry,folks, but life is not fair,and until our elected officials care enough,or grow big enough balls, or be willing to say no to the bribes, it is what it is!
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Permalink Reply by Ohio Brett on
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Agree, Bo. I don't think that there is much of a difference in the long run between 12.5% net and 20% gross....only that the gross language makes people feel warm and fuzzy.
Personally, I cared more about what they could or couldn't do on my property. I have no control over when and how big oil pays me, and I have accepted that, but I do have control what they do on my land.
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Permalink Reply by Barry D on
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Ohio Brett,
You bring up a good point about small landowners (20 acres or less).
The threats of being left out could be real. It's not hard to draw a unit boundary around a small parcel.
So what are small landowners to do? Just bend over and grab their ankles? No. They must do some work and find out where all the small landowners near them are and where their parcels are in regards to the larger parcels in the area.
The unit usually goes NW SE shouldn't be hard to figure out if the company can really cut you out. For example - if there are two or more large parcels on either side of you it's probably not true that you will be cut out.
That's just one example, but there are many other scenarios. You just need to do some work and try to find out how the units will be developed and where your parcel is in relation to those units.
My guess is this - many companies are attempting to build "super units" to HBP as much acreage as possible. So it isn't true that they can bypass all of the small parcels.
The land men will also tell small parcel owners that they will be forced pooled. Not always true. Mandatory Pooling (forced pooling) is a very complicated process for companies and costly. It would actually be easier for them to negotiate with the small landowner than go through the Mandatory Pooling process. Plus, there is no guarantee to the company that they will "win".
Information is everything, do your homework, defend your property rights.
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Permalink Reply by Ohio Brett on
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All valid points, Barry D.
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Permalink Reply by Buckets on
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What is a "super unit"? I may be wrong but I don't think they can legally go over a certain amount of acres per unit. Also, they can and do cut out both small and large parcels. They can legally run a lateral within so many feet of a parcel or cut the unit short, shift it over, etc. Doesn't matter if you're small or large acreage. And to do forced pooling I think they just have to show they have at least 60% of the unit signed to move forward with that process.
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Permalink Reply by Barry D on
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Jefferson,
To be fair, the land man is probably telling the truth; he hasn't been given permission to negotiate.
That does not mean that there won't be a negotiation. The land man has to report what he finds. If the company hears NO! enough it may re-think it's position.
At this point it appears your best option is to wait.
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Permalink Reply by Jefferson on
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I realize he is probably telling the truth about that. But it is really pointless to send someone out who can't say yes or no to anything that you want changed or even have the ability to negotiate money within a few hundred bucks. I'm not really interested in negotiating right now as he kept telling me anything I wanted the oil company wouldn't go for anyways. We will wait and see.
I do want to give the Halo guy credit he was very knowledgeable and knew what he was talking about. I stated what could happen if I signed some of his addendum's and he didn't argue and said simply yes you are right that would be possible in this wording. It was actually one of the best land men I have worked with and I've worked with multiple companies.
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Jefferson BEWARE landman want you to think they are your buddy looking out for you ....But they actually get payed from the OIL COMPANY
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Permalink Reply by G.H. on
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There are always people who will be unethical, and there are always straight-shooters. In any business... but some businesses more than others, maybe. I think the smart landmen realize that they will benefit more by building rapport with the people in the area by being honest and ethical.
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Permalink Reply by Ohio Brett on
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Word on the street is that Halo is just an off shoot of a couple people who left Purple. Same guys, working under a different company name, but doing the same work for Ascent and others. Hired guns.
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I heard Purple had huge layoffs in Ohio. These are probably just some of the people who were let go and started their own contracting business. Far from being "hired guns".
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