With Edgemarc declaring bankruptcy combined with the request for extension of 120 days over and above the standard 120 workdays and 75 extension it is possible that Edgemarc will not be taking advantage .
IF they cannot fullfill their lease bonus agreements, the landowners if approached by anyone wanting to lease again hold out for 3000 per acre and 12.5% royalty at the wellhead. ETP would not be putting in 1.5 billion dollar infrastructure if there was not significant gas below the land.
The landmen employed by the different gas middlemen companies such as Edgemarc have a vested interest in getting the best possible agreement. Their statements that this is all you are going to get is for not if no one accepts it and holds out for an equitable 12.5% at wellhead and bonus payment of 2500 to 3000 dollars favoring the upside.
The 15% royalty with monies deducted could end up with the owner getting 50% of that (7.5%) instead of the 12.5%.
If we start spreading the word from landowner to landowner and don't accept first offers then the probability increases that we can receive a fair and equitable payment for what we own underneath our land.
My previous agreement was for 12.5% at wellhead and I had to ask for it.
Any comments please.