Comment

Comment by Jim Litwinowicz on August 17, 2012 at 4:55am

the two of us; look at our track record.  We have always gotten the highest offers and they have been high enough to more than cover the fee. Add in the added value of a better lease. Other tangibles like a solid reputation in the industry and contacts with a least a dozen O & G companies. A unique software package to map and market all parcels. A law firm that does nothing but oil and gas issues. A staff of over 35 people to organize and manage the group.

Comment by Bob Jenness on August 17, 2012 at 4:51am

For Berk,

Can you give us a bit more detail on the Greenwood Twp location?  I know of the Cochranton site, and have recently heard of a new one near Conneautville.  Greenwood Twp is new to me, probably because my local knowledge at the TWP level is still incomplete.  I'm planning (or perhaps dreaming) on doing an aerial photo mission in the next few weeks and would like to get lat/long coordinates for all public-domain horizontal sites.  If readers here post coordinates, I'll post the pics, if possible.

Comment by the two of us on August 17, 2012 at 4:47am

I just added up the figures from the group in butler
County if we had been a for profit group and not
The landowners group. The members would
Have paid $1,500,000.00 more out of their bonus
Money. That is one very nice profit.

Comment by Bob Jenness on August 17, 2012 at 4:47am

Jesse,

Just one fellow-landowner's opinion, but I think it's anything but too late for you, and 52.5 should be big enough to get you some interest from all the parties I know of.  The range drilling activity is at least partly test wells, even though they'll probably (almost certainly?) go to production if it's good business.  When their first well comes in, it will "calibrate" the market a bit.  Perhaps either up or down.  If it's good, refer to the recent leasing activity in Eastern Ohio that makes $3000 look a bit poor.  I also know that when the "market" gets interested, there's some upside headroom on that $3000 number, even if we're not as "oily" as Youngstown.  As far as groups go, bigger is better.  CX appears to be not the biggest, but certainly in the "big" category.

Comment by the two of us on August 17, 2012 at 4:30am

6%  seems a little high. I understand a for profit group is formed to make a profit and i got no problem with that. Im just comparing the 40+ acres i own in  butler county to the acres i own in crawford county. In butler county i was with a land group and recived $150,000.00 to lease my land ( with good terms) and paid a total of $35.00 dollars. If i would went with a for profit group it would have cost me $9,000.00 . my wife and i would like to keep the $9000.00.  i know the $35.00 is very low and we will have to pay more with another group but i fugure it will be single digit presentage of $9000.00. can you give me a reason to join a for profit group over a landowners group. thanks

Comment by warjr on August 17, 2012 at 3:51am

@ JEsse... good response... I use the same one!    Of course I understand your 6%. LOL

Comment by Jim Litwinowicz on August 17, 2012 at 3:45am

Jesse; so far we have always gotten the best results at the time for our landowners. And the terms of the leases are always much better than what an individual landowner can get on his/her own.

warjr; you can always pay more if you like! :-)  Actually, to clarify, the fee is 6% for all members at the time a deal is announced.  Once a deal is reached, non-members can usually get the same lease but the fee will then be 8%. We feel that people that showed confidence in us by joining the group and taking the time and risk of negotiations should be rewarded. Ones that sit on the sidelines until after a deal is reached don't deserve the same rate.

Comment by warjr on August 17, 2012 at 2:55am

@  Jim as a Real Estate Broker I must ask the magic question... is that 6% negotiable?

Comment by Jim Litwinowicz on August 17, 2012 at 2:38am

Jesse, warjr; I work with Cx. We are not a "flipper." A flipper signs you to a lease and tries to resell it to an O & G at a higher price, pocketing the difference. With us you sign a marketing agreement allowing us to represent you. Then we market the groups to multiple companies and get the best deal for the landowners. When you sign a lease it will be directly with the drilling company. Our fee is 6% of the first bonus payment, none of the second five year bonus (if they pay it) and none of the royalty. If you do not get paid from the O & G for any reason, you owe us nothing at all.

Comment by warjr on August 17, 2012 at 1:54am

@ Jesse, we had an old lease with Atlas as well for paying our taxes that we got out of as well several years back.

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