Comment

Comment by Samuel J. Orr on December 17, 2012 at 6:51am

To Jim and Brett;

      I would only say this: The ultimate  purpose of your meetings is to sign people to a  marketing agreement with .CX / M&P. You both defend the automatic renewal clause. Once a person signs, he has little reason to come to further meetings. CX / M&P thereafter can and has communicated with their clients by letter or e-mail.If a client showed up with 2000 acres and wanted to sign with M&P / CX but did not want automatic renewal language, that landowner would get what he wanted. I think both of you gentleman have made my point that the automatic renewal clause whould be in large character boldface type. My fiinal point is that when a landowner considers signing a marketing agreement with M&P /od CX  or some similar entity, he or she should read the language carefully. He or she can then request modifications or alterations to the standard contract. Now M&P / CX might say "its my way or the highway" but I don't think so. I think we have beaten this horse to death. Perhaps we must just agree to disagree on this issue and remain friends. It has been a lively exchange. Besides, the website was pretty dead and our conversation has livened it up a bit. I extend seasons greetings to all. May we all enjoy the holidays and look forward to a better and more prosperous 2013. Let us also open our pocketbooks to the less fortunate by contributing to a worthy charity of our choice. Finally, let us remind ourselve that if we have good health we have much to be thankful for. May God bless us one and all. Merry Christmas!

. 

Comment by p umpjack on December 17, 2012 at 6:46am

don't hurt your arm patting yourself on the back

Comment by Brett Allen Morgan on December 17, 2012 at 5:54am

For what it is worth here is my 2 cents on the auto renewal. Personal responsibility ......know what you are signing.....in this day and age auto renewal is everywhere. Just saying.

Comment by Jim Litwinowicz on December 17, 2012 at 5:12am

At every meeting we tell the attendees that the agreement renews automatically unless they send us a letter stating they want out. We also explain why we do it so that everyone understands. All members can attend any meeting we have and get questions answered face to face. I even tell people to mark their calendars the date they sign.

It takes a long time to hold meetings and build a group large enough to market.  Then negotiations can take several months or longer. The first Mt Jackson group took over two years, start to finish. Sometimes, you have to sit back a wait....like now. Companies are quiet until they start with next year's budget. Things will probably get interesting after the NAPE in Feb and after a couple these wells are completed. Lets hope the wells are all big producers.

Comment by Lance Nimmo on December 17, 2012 at 4:36am

Yikes, auto renewal? Pretty sure a date sorted spreadsheet would make it easy enough to track the clients who's leases were expiring convenient to contact. Jim, we know each other, and I think you're a standup guy, but I think sometimes it's bad medicince to take the body shots for lawyers; especially ones who hide behind the "convenience" of an auto renewal and let companies out fox them on lease language letting them back out of leases.

 

Not sure why someone paying $250 an acre doens't merit a phone call after 6 months asking them if they've been happy with their representation, and if they'd like to sign up for another 6 months. Many landowners are elderly, and I'm sure most of the assume that a 6 month deal is just that, and doesn't require some sort of action on their part from it becoming infinite. Just my thoughts.

Comment by p umpjack on December 17, 2012 at 3:12am

Diamond Jim as long as you got half your money because half the deal got done good for you

and should another deal fall from the heavens in 6 months with the great sneaky auto renewal you get the backend of your money I think you wear a stinkee suit 

Comment by Samuel J. Orr on December 16, 2012 at 5:22pm

Jim: Your last post clears the air. I have repeatedly said that I sincerely hope things work out for everyone. Halcon and other O&G companies have obtained directly or indirectly  the signatures of landowners on " lease options" which landowners thought were leases. These type of documents are very disadvantageous to landowners because of the grace period and the unilateral right of the O&G company to tie up  the land for 90 business days and then walk away willy nilly from any particular acreage. In theory a company can decide to speculate during this 90 day period. One can imagine a company having no intention to drill whatsoever but using the 90 day period to look for someone to flip the particular acreage to at a profit. If it can find such an entity, it exercises the lease option and pays the bonus money. If it can not find such an entity, it walks away. If it walks away it has spent essentially nothing, while if it exercises the lease option and flips it for more money, it has a guaranteed profit .It does not exercise the lease option unless it has a binding legal commitment from another entity who is willing to pay it more than it has to pay in bonus money.

Comment by petej on December 16, 2012 at 4:45pm

CX / M&P,

If you are monitoring this you really need to be more landowner friendly. Back in early November ( Stoneboro ), we asked for more communication and you agreed. However, nothing since.

Our suits are soiled.

Please change.

Comment by Jim Litwinowicz on December 16, 2012 at 4:39pm

Sam; Cx has a contract with Halcon requiring them to pay all landowners that signed a lease as long as their property clears title. They are in violation of that contract. Both Cx and M & P acted in good faith as they believed that Halcon would honor their contract.  Both companies stand to lose millions in commissions and more in additional time, work, and costs involved in marketing, negotiating, and hosting events to get another lease for affected landowners. Plus significant damages to their reputation and their ability to operate in the future.

The only source of barn yard excrement is the company with the predator symbol.

Comment by petej on December 16, 2012 at 4:35pm

Well stated Samuel.

Jim has some good points also.

We are still with CX for a few more months. Believe in power in numbers.

Not a big believer in " County Wide Numbers" ie Halcon.

Groups yes but, on a smaller scale. Brought this up at a landowers meeting LAST JANUARY (not CX ) and was dismissed in10 seconds.

To this point we have not been pleased with our CX / M&P experience. However, the offers we have gotten on our own are worse.

 

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