Comment

Comment by Nate on January 4, 2011 at 3:20am

Dan,

 

I see you and others mention often that companies "don't have rigs" to do the horizontal drilling or whatever. That's not a problem and very common. Many companies contract drillers to do their drilling because they don't want to own rigs and iron. So just because they don't own rigs doesn't mean they can't get the job done.

Comment by Peter Schueler on January 4, 2011 at 2:59am

One way to separate the hustlers with no assets from the principal producers is to demand a time-of-signing, non refundable "earnest money" payment that is at least 10% of the bonus offer. Here's an example from the Wyoming County PA Landowners Lease with Chesapeake:

Lessee and Lessor agree to a signing bonus of Five Thousand Seven Hundred and Fifty and No /dollars ($5,750.00) for each acre, One Thousand and No /100 dollars ($1,000.00) per acre of which is non refundable paid at the time of signing Lessee’s Lease Commitment Agreement, with the remainder payable pursuant to Order of Payment on the date Lessor’s title is confirmed.

This lease shall become effective on the date of receipt by Lessor of the final signing bonus payment. Lessee and Lessor agree that all rental and bonus payments made by Lessee for this Lease are non-refundable. The total paid up amount shall be based on Five Thousand Seven Hundred and Fifty and No /dollars ($5,750.00), for each acre leased hereunder, for a total of $__________________. Lessee acknowledges receipt of One Thousand dollars ($1,000.00) per acre for $_________________paid by Lessee upon the execution of Lessee’s Lease Commitment Agreement dated _______________.

The balance of Four Thousand Seven Hundred and Fifty and No/dollars ($4,750.00) per acre for a total of $_______________________to be paid in full upon the execution hereof; provided however, title shall be confirmed or title defect(s) shall be documented, payment shall be received by Lessor, in hand, not later than December 31, 2009. For the purposes of this paragraph (1), an unsubordinated mortgage will not be considered a title defect.

 

Comment by Peter Schueler on January 4, 2011 at 1:38am

Tom, re Tri-Star

My first contact for leasing my property was back in August from Tri-Star Energy, Mike Williams, who was working out of St Clairsville. The company is located in Parkersburg, WV. To my knowledge it's just a small land leasing company with no significant assets and no formal connection to a producing company. They were offering $500/acre and 12.5% royalty. They did offer 30 day payment of the bonus. They lost interest in my property when I did not sign the lease document as they had prepared it. That told me all I had to know about Tri-Star.

Comment by tom dowdle on January 3, 2011 at 7:23pm

Dan, who is Tristar Energy?

Comment by Dan on January 3, 2011 at 7:17pm

Comment by Dan just now

Delete Comment

There seem to be different stories about what Wellington is really doing. Are they really leasing for Trinity, Chesapeake, Range, or what?  Do they really have money to pay all their leases or not?  One of the Wellington reps, Cheri Ramsburg, used to comment on this group.  It would be nice if she or anyone from Wellington would tell us what is really going on.  I checked back through all the comments, but it looks like she deleted all her previous comments for some reason.  All I can say for sure is that a fellow landowner I know did get a lease check yesterday from Wellington.  Everything else remains a mystery...

Comment by scott jackovitch on January 3, 2011 at 12:51pm

I just got off the phone with Wellington a few moments ago and the gentleman I spoke with did not believe they were representing Trinity Energy.  He mentioned Range resources or maybe even Chesapeake. He is going to E-mail me a copy of there contract and says he has signed up some of my neighbors and is currently talking with others.   It seems maybe the one hand doesn't know what the other is doing.  They Claim to have the most landowner friendly lease out there, we'll see.

Comment by Peter Schueler on January 3, 2011 at 12:17pm

Scott, I'm not sure which Trinity Energy that Wellington is representing. If its the one I invested in 25 years ago TRGC, I would check out this website

http://www.hotstocked.com/companies/t/trinity-energy-resources-inc-...

"Employees

At the present time the Company has 1 full time employee and 2 independent contractors to assist as necessary on certain projects. The Company believes that its relations with its employee are good.

 

Comment by Peter Schueler on January 3, 2011 at 12:11pm

James,

I would like to know what arrangement/contract you have with your clients including terms of representation and compensation. Are your clients able to opt out of their arrangement with you at their convenience?

Comment by Dan on January 3, 2011 at 11:45am

Scott,your post was the first time I had heard of Wellington leasing for Trinity Energy. I looked up trinityenergy.com and they don't appear to be a driller or producer, but more of a higher level broker. This was my first pass at research on them though, so I may not have it right.

Comment by Dan on January 3, 2011 at 11:29am

James, your question about why don't they just buy the land is a good one. I think the point is that you can't buy wooded land for $2100/acre in Harrison county now. The potential value of the gas revenues have just raised everyone's land values, as long as they hold the mineral rights.
How much they are raised, I have no idea, but you won't find cheap land around here anymore, especially with mineral rights attached.

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