Is there any chance there will be a turn around and the land owners will actually get what they were promised? Riches in the royalties. I remember it well. Back yard lawyers. "Don't give the lawyer any percentage give them $per acre" Well at the last minute I had a choice and went with giving the lawyer %1 of the royalties. He hasn't got nothing yet and, the $350 per acre is in my pocket. Well it was till I spent it all down to the level I was at before I was rich. (I wrote about that before how hard it is for anyone to hold onto a wind fall) At the present after 3 yrs I think it was the right choice and, when the gas co. starts cheating me my lawyer has an interest with me and many others in our group to try to fight for us. That 1% of a group will line his pockets pretty good.
if you mean landmen.....they have moved on to some other corrupt job
Depends on where you're located. Easy enough to figure out at this point. Lots of info on here.
Finally a man with some sense. The guys telling you the money was in the royalties were the same guys working at the O&G companies who were forecasting oil at $100/bbl and NG at $5/mcf into perpetuity. If you happened to have good rock under you and commodity prices were indeed as they forecast you would be in tall cotton and no discussion would be taking place. It's called sour grapes. Not everything pans out like you want it. Btw those O&G companies are taking it in the shorts right alongside you so don't feel lonely. They spent $10 million to drill the well and are getting 80 cents for the gas and $20 for the oil....... OUCH
Tyler - you must be one of those corrupt landmen........glad I offended you.
The money is in the royalty especially if you are already very wealthy and have a large amount of acreage otherwise maybe they take 2 of your 50 acres and unitize it to tie you up, then if the unit is a 1280 you get the big sub $100.00 check for your royalty. In this industry the rich get richer money follows money dont forget that when you are anxiuosly waiitng on that big huge royalty chek the landman told you about.
That maybe one of the many ways. The biggest seems to be just outright steal it from you and get away with it.
I believe in the beginning They payed like they were suppose to so the word got around. That way it was easier to get people to sign. Then the price went down and supply is up, they choke back the wells, some to HBP. I believe even if they could have sold it as fast as they could produce it they still would have started cheating and stealing once the had less motivation to sign new acreage.
Barb; you hit the nail on the head.
If demand increases, or if the current price of natural gas rebounds, creating another round of leasing, I'm going to jump at the first offer of $2500 per acre. like I did in 2008 without any regrets!
I didn't have a crystal ball in 2008 and it ultimately went to $6000 per acre, but I still don't have any regrets!
The royalty issue is mainly a result of low natural gas prices and the negative differentials.
Even with the lows natural gas prices and the negative differentials. I'm still jumping at the first offer of $2500 an acre to lease again.
What's your opinion on the royalties vs bonus?
Yes, this seems mostly right. If you have large acreage then you stand to profit the most from royalties, certainly. You also probably got a huge signing bonus. Your location and the productivity of wells in your area also greatly influence royalties, obviously. And you can definitely get screwed by having only a few acres of your property put in a unit. It's all a gamble with so much left to luck and chance, but in the right circumstances royalties will pay you more than the signing bonus.