Replies to This Discussion

Permalink Reply by mike on April 23, 2012 at 3:10pm

are they working for the oil company ?

Permalink Reply by Dan on April 23, 2012 at 10:00pm

Going to be working with  Bob Rea of Buckeye Mineral.

Permalink Reply by Joseph-Ohio on May 4, 2012 at 6:07am

I've heard that Stephen Rea (Bob's brother) is running and the 'go to guy' for 'Buckeye Mineral'.

So, I'm getting that the Eastern Ashtabula Landowners Association (EALA) is a 'Landowner Group' and 'Buckeye' Mineral is a 'Land Manager'. I'm also getting that 'Buckeye Mineral' will (for the most part) negotiate with the actual 'Developers' representing EALA's best interest.

Do I have that correct ?

I'm seeing two (2) organizations between the Landowners and the Developers and of course, this is by the Landowner's so choosing.

Since all monies originate from the Landowner's Gas & Oil (resident on the Landowner's land) and are paid by the actual Developers of the resources, I've a question as to how many people within these two (2) middle organizations will be getting paid ?

Do EALA people get paid ?

If so is their compensation coming from the 2 3/4% of the Landowner's Signing Bonus ?

Or could there also be Landowner Royalty (penalties) involved in all contracts constructed by way of 'EALA' and 'Buckeye Mineral' (perhaps conditionally hidden from the Landowners) ?

Permalink Reply by Dan on May 4, 2012 at 9:47am

Joseph -Ohio

I've heard that Stephen Rea (Bob's brother) is running and the 'go to guy' for 'Buckeye Mineral'.  I would not bet on that.

So, I'm getting that the Eastern Ashtabula Landowners Association (EALA) is a 'Landowner Group' and 'Buckeye' Mineral is a 'Land Manager'. I'm also getting that 'Buckeye Mineral' will (for the most part) negotiate with the actual 'Developers' representing EALA's best interest.

 Do I have that correct ?   Yes

I'm seeing two (2) organizations between the Landowners and the Developers and of course, this is by the Landowner's so choosing.

Since all monies originate from the Landowner's Gas & Oil (resident on the Landowner's land) and are paid by the actual Developers of the resources, I've a question as to how many people within these two (2) middle organizations will be getting paid ?  Buckeye Mineral is the only one getting paid ( 2  3/4% ) . The Developer pays you, you pay Buckeye.

Do EALA people get paid ?  No, our only payment is in providing people of Ashtabula County the ability to make a informed decision on leasing their minerals. No matter who they decide to sign with.

If so is their compensation coming from the 2 3/4% of the Landowner's Signing Bonus ?  See above.

Or could there also be Landowner Royalty (penalties) involved in all contracts constructed by way of 'EALA' and 'Buckeye Mineral' (perhaps conditionally hidden from the Landowners) ?   See above.

Permalink Reply by Joseph-Ohio on May 4, 2012 at 10:01am

Dan,

Thanks for your response.

Sincerely,

Joseph-Ohio

 

Permalink Reply by D on May 7, 2012 at 2:50pm

ASK ONE OF THE TRUMBULL COUNTY LANDOWNERS IF THEY LIKED THE FINE PRINT THEY GOT IN THEIR LEASE.  I KEEP HEARING ABOUT FINE PRINT WHEN IT COMES TO BOB AND BUCKEYE MINERAL.

Permalink Reply by Dan on May 7, 2012 at 10:09pm

The vote spoke for itself..

Permalink Reply by susan on May 8, 2012 at 10:17am

Hi, is there any chance EALA would consider holding meetings on a weekend?  It seems that most recent meetings are with only a short notice and on weeknights, making attendance a little more difficult.  I'm very interested in attending but I think you may be missing some possible attendees/participants due to the short notice and timing of the meetings.  Thanks.

Permalink Reply by Dan on May 8, 2012 at 11:53am

Good point, will see what we can do.

Permalink Reply by Michael Vary on May 10, 2012 at 9:53am

Hello Everyone,
I am a fellow landowner of 40 acres in Geauga county and I understand that everyone is really upset about having to pay a huge tax bill on their upfront bonus check. It's not a fun experience.

However, I want everyone to know that there is a way for landowners to decrease their tax liability by taking payments over a couple of years.

However, this only works if you are able to work on a plan PRIOR TO SIGNING THE LEASE. I am in the process of helping many landowners defer the income over a number of years and therefore decrease their tax liability on the bonus payment.

Prior to signing a lease, you can have your lawyer write in specific language in a lease to defer the payments over time. If anyone on this site knows of a fellow landowner who hasn't signed a lease or is about to sign a lease and doesn't want to pay a HUGE tax bill, please have them call me and I will give them information on what they would have to do.

My number is 216-409-1710.

-Mike Vary

Permalink Reply by Dan on May 10, 2012 at 12:02pm

Setting up a conservation easement donation can be used as well to offset some of the tax liability. Ohio Extension had a good Tax workshop ,  almost brought tears to my eyes with all tax liability involved. Would like to know the details of your information as the tax workshop didn't give that type of plan a very good endorsement.

Permalink Reply by Michael Dolezal CPA on May 25, 2012 at 2:46am

I know Mike Vary, and working with him to develop a systematic approach to planning for the lease income. I not sure who spoke at the Tax workshop at the Ohio Extension, but the conservation easement may or may not assist in reducing taxes. The Bush era tax laws are  to be eliminated by the end of this year if Congress does not act, which means the conservation easement may not be deductible given your personal situation. However there are other strategies such as the one Mike Vary mentioned in his post that could potentially defer and save taxes. If you would like to discuss your personal tax situation my contact information is below.

Michael Dolezal, CPA, Realtor

Hallman & Stasko, CPAs

Cleveland Oh

440-225-7680

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