They were not crooks. Traditional gas leases ran to the center of the earth. In recent years new technology makes it possible to drill wells with laterals. They screwed nobody and paid market rates. The royalty was 12.5% and this was an industry standard. If Vista hooks up with Shell, Vista will make a lot of money. The landowners at worst will get a 12.5 % royalty on this deep gas and that could be a whole lot of money. I appreciate your posts, but I honestly think this post is well beneath your intelligence. If you bought a farm and paid the asking price, would you have screwed the seller if you later found that there was gold now recoverable by new technology, but which was not available when you bought the farm? It is possible that Vista might negotiate a royalty of 17.5% in which case the landowner would get 12.5% and Vista 5%. There is nothing unfair about this whatsoever.
It's not a theory, James, it's a fact. Nobody saw this coming until a few years ago. This shale boom--and all the money that comes with it--has turned decent, hardworking individuals into handout-seeking malcontents. When I shake a man's hand and agree to something I stick with it, even if it ends up being better for him than it is for me. Because that's the deal we shook on.
James is sounding like Jiminy Cricket. His motto, "The world owes me a living" I was leased to Cabot years ago and then to Atlas. Think I got $30/acre signing bonus and $2.00 per acre/ year for years 2 and 3. That was the best lease. The last lease was Atlas and it expired perhaps 7 or 8 years ago. They did not renew it. These companies were and are in business of making money. Nobody ever forced be to sign a lease but I was damned glad to get the money. I am glad Atlas didn't renew lease and I am sure they are sorry that they didn't. I am glad they did't but was sorry at the time. Jim, I do not understand your thinking at all. I can guess your politics but we are not supposed to go there.
Samuel, I have an opinion just like you or anyone else does, we may not agree but it doesnt meen Im looking for a free ride. I have did well in life and was retired at 35, I am 40 now, not many people can say that.
I congratulate you for that. I was not taking a cheapshot at you, but making an attempt to explain why I do not understand your post or your reasoning on the proposed Vista/Shell deal. The point I was trying to make is that when I leased my land, there were a number of O&G companies leasing, and I got the best deal that was available at the time that I leased. Nobody cheated me, and I got what the market was paying at the time. Markets change over time. What looks like a good deal today may be a bad deal tomorrow, and vice versa. I think Vista is assuredly more reputable than Halcon, and probably by a long shot.
Vista has plenty of employees who are our neighbors here in Mercer and have always been very generous to this community. I am happy for them and also happy for anyone who gets a deep well on an old lease.