grouping together with neighbors?

myself and two other neighbors leases will be up for renewal all within a 6 motnh time frame of each other. We have discussed joining together so our land parcel would be larger and hopefgully have better bargining power when it comes to the lease terms. Can anyone tell me the pros and cons of joining together as a group? The dteials are this.

 

three seperate parcels of 50-60 acres. Combined would be ober 180 acres.

 

Leases all expire starting in 12/2010, then 2/2011, then 5/2011.

 

current single offer is $1500/20% royality. (Is this good, I was thinking more on the lines of 3000/20%)

 

any other infor owuld be greatly appreciated. I have the land mans number but have not called him yet to discuss.

 

Thanks in advance for any guidance you all can provide.

 

scott

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Replies to This Discussion

Permalink Reply by Bonnie Swinehart on August 24, 2010 at 6:04am
May I ask what is the name of the gas company the land man is with??
Permalink Reply by Scott Blumenstock on August 24, 2010 at 1:17pm
Penn Virginia...
Permalink Reply by Keith Mauck (Site Publisher) on August 25, 2010 at 3:20am
Not sure how much leverage you'll have with 180 acres, probably very little. What are the prospects of tripling that with other neighbors?
Permalink Reply by Keith Mauck (Site Publisher) on August 25, 2010 at 3:22am
Your goal should be to get a enough acreage to have control of your section...typically this is 640 acres. SO if you can get that up to 321 acres, you'll have more leverage especially when/if forced pooling goes into effect.
Permalink Reply by Scott Blumenstock on August 25, 2010 at 3:34am
Thanks for the reply's. I am going to do some info gathering up north and see if I can get the acerage up as you suggest. As far as going price in the area (North Fork, Potter County) do you have any insight? They have already hit in the area.

Thanks again...
Permalink Reply by James L. Mitchell on September 4, 2010 at 4:52am
My nieghbor has 2 more years to go on his lease which was $200.00 per acre (108 acres) we are located near Genesee.I can not find who has my mineral right after some searching but still searching.I think it is owned by heirs of the Bingham. estates.Anyone have any suggestions?
Permalink Reply by Jack Young on May 13, 2013 at 7:36am

Never noticed this post before. Contact me - I can probably tell you who has the oil and gas rights under your land. It's not likely to be the Bingham Estate, as their property in Genesee Township all went to a couple other parties.

Permalink Reply by Jules Delgotto on April 10, 2011 at 5:31pm

Tread carefully with some of these land owners groups. Some play the insecure land owner card and tout the benefit of a good lease, as if there are some secret clauses in their posession.

 When in reality, a well versed attorney can draw a comparable lease, if not one tailored more to your personal situation.

Further, in Ms Hancharick's group's case. Aside from taking a portion of your bonus money and a portion of your royalties, you must keep in mind you are signing a contract with Coexprise, the Experts. If you do not accept their results of their bidding process and lease (which will be the group's lease) and decide to go lease on your own, you are still obligated to pay Coexprise their bonus and royality fee. Ouch.

And as for Ms Hancharick, she is being paid by Coexprise, so just consider what you hear very carefully and don't be sold a bill of goods from a landman or a landowners group headed by a company that takes.

Permalink Reply by jb379 on May 26, 2011 at 1:23am

Jules,

 

Thank you for the insight.  I have been looking into numerous groups (including the 4 county group) and it appears some important information had not been disclosed (or maybe I simply missed it if it was....my apologies if the latter is the case).

 

JB

Permalink Reply by Tim on May 13, 2013 at 2:36am

Scott,

What did u end up doing?

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