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Comment by Adam on December 21, 2009 at 3:17am

I agree James. Glad we are on the same page.

Comment by Adam on December 21, 2009 at 2:23am

Wow, this tiny comment box makes it hard to proof.

Please ignore the typos in my previous post.

Comment by Adam on December 21, 2009 at 2:22am

Luckens,

Fist please understand that I am not commenting on what a particulary landman might tell you. That is something none of us have any control over. If they are dishonest, then that is their choice.

If I understand you correct, it is wrong for a small business to try to get the best deal it can in order to put itself ahead? If I own a small country store and negotiate with my supplier of chips to get a better deal than the guy down the road. Am I being dishonest? Is the chip supplier being dishonest? This is the USA. Its a free market (for the most part). It is your job as the mineral owner to do your research and know if its a good deal or not. You cannot blame a company for trying to build itself.

Again, I am not commenting on what a landman might tell you. If they lie to you, then so be it. I am responding to your statement about a small company that needs "to look at a different line of work."

I have no problem with someone flipping a lease. It happens more than you know and leasing to the big company doesnt make it any more likely that the lease wont get sold.

By the way, in case you havent figured it out. I am a landman myself.

Comment by Country Bumkin on December 20, 2009 at 3:26pm

Adam, I see what you are saying, however, when the landmen try to pass their crappy offer off as being "the going rate" is where I have the problem. If the company doesn't have the money to pay up, then maybe they need to look at a different line of work. You can't offer crap to people and then say well, it's b/c they don't have the money--are you serious? What do you think of the "small" company reselling their low balled leases to the big companies for the TRUE going rate--how does that sit with you?

I agree with James. I'm a Christian too. For me, a little bit of honesty and truth would go a long way. We are only here on earth for a blink of an eye and I won't do business with people that are looking to take advantage of me.

Comment by Adam on December 20, 2009 at 4:32am

You cannot gauge a Landman based on what his company has allowed him to offer. Not all companies have the capital that CHK or HK has. It's like a small business trying to work it's way up.

I am not taking up for anything a Landman might tell you. Just giving you another angle to look at.

Comment by Country Bumkin on December 19, 2009 at 4:27pm

We have talked to 3 landmen so far in the past 3 months and two of them were nuts, I take that back, they are just trying to take advantage of us "good" eggs. I personally think that most of them are hoping that you are a Country Bumkin who doesn't know anything about the gas play. The other landman was just with such a small outfit that I didn't get the sense that there was ever going to be any activity in the near future nor the funds for any development--plus their offer wasn't any where near what we believe our place is worth.

So, in all of my experiences so far, I would describe Landmen as a cross between a car salesman and a lawyer....I don't care for either one....

Comment by Tracy Packer on December 19, 2009 at 5:13am

There ARE GOOD Landman out there. That's just like saying "if one egg is BAD.......then they ALL must be bad." That's just silly. Sorry you ran into a bad egg.

Have a great one!

Comment by Richard Auden on December 19, 2009 at 12:10am

Recent offers in Sullivan County, just northeast of Williamsport have been running from $2500-$6000/acre, 5-years, 15-20%, so don't sign too soon...these are mostly small groups or individuals signing - be careful!

Comment by Matt Morris on December 19, 2009 at 12:08am

Dan, sorry I didn't check out the locations to which you referred. I assumed they were in Clearfield County but obviously I was mistaken. They are in an area where landowners "grouped", something we have not been able to do in western PA. Thanks again for your information.

Comment by Matt Morris on December 19, 2009 at 12:04am

Hey Dan, the $5,000 per acre (don't know what royalties, term limits, or other addenda) would be great news but I have serious doubts that is accurate. The highest amounts paid to date in the Marcellus is around $6,000 per acre but that was to a savvy group and in an area generally defined as "core". I thank you for your response but could you guide me to a source (individuals, specific newspapters, etc.) that could validate/invalidate AND if anyone else has info on price per acre, royalty percentage, and terms I'd appreciate your input.

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