Replies to This Discussion

Permalink Reply by DKinPA on May 19, 2010 at 10:40pm

We are forming a group, the Butler County Landowners Group (BCLG) which will include Venango. We meet next Wed at 7 at the Unionville Fire Hall......the more we have involved the more leverage we will have, so hope to see all of you there.

Permalink Reply by Sheena Irwin on May 20, 2010 at 7:43am

Mind if some Clarion County folks show up and see whats going on with your group? This is next Wednesday as in the 26th?

Permalink Reply by DKinPA on May 21, 2010 at 8:02am

Sheena, I appreciate your interest but we may be limited on space and are covering a pretty big area so we can not allow for those not in our geographical area. I promise to keep you updated and I am willing to share information and resources to you or whomever might want to form a group in your area.

Permalink Reply by randall gottus on August 8, 2011 at 6:48pm

  Jim...Shell is active in your area at this time, and the agent, who alot of the landowners are working with there, is Sean Farnham (601 540 5936). I also have worked with him recently on bringing up to speed some previous leases that I have with East Resources, and am now starting to work with him on some other upcoming acquizations that I will be getting.  Also I will be working with him on two other parcels that I have in Venango County, as soon as Shell decides that they now have enough leases in the northern Butler County area, and starts working on getting leases in Venango County.... It was the positive feedback that I got from the other landowners that convinced me to work with him.  Also, they are offering 3000.00 an acre, and will work with you and your attorney on the lease and the addendums.

Permalink Reply by James G. James Jr. on August 9, 2011 at 7:06am

I am working with the Butler land Group

Permalink Reply by Brian on August 9, 2011 at 8:37am

Randall,
Do you know what parts of Venango county Shell would be interested in trying to lease?
Thank you Brian

Permalink Reply by randall gottus on August 10, 2011 at 12:16am

Brian...not sure..mine are in the southern part of Venango county, but you can call him regarding yours.

Permalink Reply by DKinPA on August 9, 2011 at 11:32am

There are an awful lot of people who signed just as recently as 1 year ago or even 1 month ago and they are kicking themselves because they did not do their research enough to know that the panic button that the landman was telling you to push was simply a button to authorize you to leave tons of money on the table.  $3000/ acre and only 15% is still NOT fair value     and any  one who says that it is.........what criteria do you have to support that?  Competition is the only way to determine what the value is and we have no competition yet.  Chevron and Exxon have just begun to be active in the area and I will wait to see those numbers jump up!

Ask yourself this:  Why did Chevron just acquire Atlas?  Why did Shell just acquire East?  Why did Exxon just acquire Phillips?  All small companies that already have lease holdings in our area......Tax write off?  Probably not.  Vacation property?  Hunting camps?  Maybe, but probably not.  They have tremendous capital and they are developing a plan to lease and produce every available acre they can. 

These wells will be productive for 30 maybe 40 years......how much of your Childrens, Grand Childrens and Great Grand Childrens money are you leaving on the table (essentially giving to the gas company) if you agree to 15% as opposed to 20%?????????????????  Do your research, join a group of landowners and be patient.....it has not gone away ANYWHERE!

Permalink Reply by ShaleAdvice (Steven C. Townsend) on August 9, 2011 at 5:14pm

I would be careful of only looking at the dollar amount for royalty and bonus payments. Although those are very important factors to consider when deciding whether to lease, there are other factors you must take into consideration. Remember the lease is written to protect the oil company, not the landowner or mineral rights owner. Also, there are a number of clauses and provisions that should and must be included in addendums that will protect your current and future interests.

I am dealing with a land group now of over 130 who wished they would have looked at more than the numbers when they signed their leases.

Permalink Reply by randall gottus on August 9, 2011 at 11:48pm

MSDRS ....yes, bonus and royalties are nice, but do not let it be a distraction. The real deal is in the addendums. It does not matter if you work with a land agent or a landowners group, you need to work with an experienced attorney. Lack of/or the wrong clauses and provisions can cost you later....LEAVE NOTHING ON THE TABLE !

Permalink Reply by randall gottus on August 17, 2011 at 11:35am

 MSDRS...to your point, again, and then some...I recently came across some information from a class lecture at work yesterday that supports what you were saying on 8/9. It states how important the lease and addendems are, and that people tend to only focus on the bonus and royalty payments. Also it stated  how one  landowner's needs are not the same as another landowner's needs (many parts to this), and how parts of the lease/addendums should reflect that. It went on to say how important it is to work with an attorney, and directly with a landman, so everyone is on the same page, and that there are landmen/gas companies out there that will work with you and your attorney...for me it was Shell.  It also went on and talked about landowners need to be pro active , feel a sense of control, and need to realize that they are part of the team when working with an attorney , and the landman.

Permalink Reply by DKinPA on August 17, 2011 at 2:25pm

Randall,  no would would argue (and I don't believe any one did) that the addendums are very important.  However that is not the sticking point here, the gas companies have acutally been very easy and agreeable regarding addendums so that brings us back to the original point:

Why would someone sign an identical lease and addendums at $1500/15% or even $3000/15% vs. $4000/20%???????  Thats where your leaving money on the table!  The lease and addendums are identical but you are foregoing hundreds of thousands of dollars per acre over the next 40 years.....leaving it right smack in the middle of the table and begging the gas company to take it.

Now I know everyone is pushing their landman for whatever personal gain there may be but you don't need to give them your Grand kids money too.

 

Please read this thread for a little more enlightenment..........and pause on the agreement between the HWCC Landowner group and Chesapeake!

 

http://gomarcellusshale.com/group/ohio/forum/topics/25-landowner-ro...

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