Replies to This Discussion

Permalink Reply by Mike C. on May 14, 2012 at 7:05am

You are assuming that companies trade left and right.  I am connected enough to the industry that I know that just isn't true especially for smaller parcels.

Permalink Reply by Jim Litwinowicz on May 14, 2012 at 7:17am

I know of several JVs that companies have done to develop units.  I also know people that have had their parcels assigned to other producers.

This is an issue that develops even when people sign direct with landmen. I had three different companies approach me.  So have lots of other people. The mixed pattern of leases results and has to be dealt with. Companies know this and work to solve it.

I would think that the problem is much less when part of a group.  That is why we stress to people to talk to their neighbors and try to get as many signed as possible. It helps accelerate the process when neighbors work together.

Permalink Reply by Jim Litwinowicz on May 14, 2012 at 10:36am

    

                    :-)

.

Permalink Reply by CL on May 14, 2012 at 2:47pm

jim

 

I own land in sugar grove twp on the edge of Greene twp in northwest Mercer county. there is an existing D and L energy lease so I am HBP. Is your group interested in HBP? and What do you know about D and L? They have a lot of HBP land in my area.

 

Permalink Reply by Jim Litwinowicz on May 14, 2012 at 3:30pm

CL: If your land is HBP'd there is nothing any company can do.  Read the lease to see if there are any clauses that can be exploited.  Look for depth restrictions or the naming of specific layers/formations/strata. Also, see if there are unitization restrictions.

Have an attorney look it over. Bring it to one of our meetings and an attorney will review it for free.

D and L is a shallow driller I think. They have the right to sell or assign the deep rights. If they do so and a well is drilled, you will get the royalties in the lease, probably 12.5%.  For a horizontal well, that is still substantial money.  You just won't get any bonus payments.

Permalink Reply by Jim Litwinowicz on May 14, 2012 at 3:44pm

Ok here's the deal.  Cx-Energy and M & P Law have announced a deal with Halcon for $3850/acre and 18.5% royalty...no deductions. It is for the entire county, all parcels that clear title work must be accepted. All members must have a signed agreement faxed by Monday 10 AM. After 10 AM Monday, Halcon has the right to not accept your parcel and the fee will be 8% of the bonus...no royalty based fee. (Before Monday the fee is 6%)

Email me if you need forms.  I can fax them or mail them to you. Include name, address, acreage, and fax number. Put "Mercer Lease" in the subject box.

landownerslease@hotmail.com

Permalink Reply by petej on May 15, 2012 at 5:19am

Jim,

Just to clairify, you mean "all that want to be members" must have a signed agreement faxed by Monday 10am - correct? All of us that are "members" to this point, do not have any paperwork to have in by Monday 10 am - correct?

Permalink Reply by Jim Litwinowicz on May 15, 2012 at 5:54am

yes, there is a commitment letter that all members need to have in by 10 AM Monday. you can attend any of the meeting tonight, tomorrow, or Sunday to get the form and fill it out and hand it in.

Permalink Reply by petej on May 15, 2012 at 6:53am

Jim,

So, anyone that does not have a commitment letter filed or faxed by 10am Monday, will pay 8% of the bonus rather than 6% even if they have been "members" that signed the marketing agreement back in Feb.?

Permalink Reply by Jim Litwinowicz on May 15, 2012 at 7:05am

I'm not 100% sure of that. Halcon wants commitments to see that they have enough land to schedule a signing event complete with company officials present to sign leases in June.

I would think that members will not be charged the extra fee but after Monday Halcon has the right to reject any parcels they don't want.  Before then, they must accept all parcels in Mercer Co.

Permalink Reply by petej on May 15, 2012 at 7:38am

I will be there tonight. I understand the commitments that Halcon wants to see. I would to if I were them!

However, after Monday 10 am they "have the right to reject any parcels they don't want".! On top of that CX wants to charge 8% vs 6% of the bonus on those who have had a marketing agreement since Feb?!!!!!  Guys, how landowner friendly are you REALLY?

 

Permalink Reply by Jim Litwinowicz on May 15, 2012 at 8:02am

No, I checked, the fee will be the same for all previous members. 8% for anyone joining after Monday 10 AM

• ‹ Previous
• 1
• 2
• 3
• 4
• 5
• …
• 11
• Next ›
• Page