Comment

Comment by Jim Litwinowicz on April 10, 2012 at 3:45pm

David Hunt; The Trumbel deal was indeed $3900, even further below the $5800 that Mahoning got. Maybe a professional, full time company could have done better? And when I said there was no oil in Pa I was referring to the Utica shale in Lawrence and Mercer Co It is believed the western parts of these counties have wet gas but no or very little oil.

These shale plays can change rapidly...sometimes a few miles can make a big difference. That why it is very difficult to compare deals in different counties.

And if you really care to know the answers to all of your questions on past deals, the bonuses, the royalties and more, come to a meeting.  All of that is covered in good detail.

Comment by Jim Litwinowicz on April 10, 2012 at 3:38pm

Bob J; thats why we have open meetings. Every one and any one can come, listen, ask questions, evaluate the presenters and the company, and make an informed decision. There is no way to cover all issues posting here. Or answer all questions or give anyone a good feel for who we are what we do.

I am sure that you would never sign with someone with meeting them in person and looking them in the eye. No other way to do it.

Comment by Bob Jenness on April 10, 2012 at 3:27pm

All,

Enjoyable as the recent bickering has been, I'd find it a lot more useful if we could actually see some scorecard (or CV or resume) info on the negotiators and/or negotiating teams.  All the fuss here is just tiptoeing around the issue that all landowners need to hire a NEGOTIATOR that they know is a superstar at NEGOTIATING.  If we wanted a superstar defense lawyer, those names are known (e.g F. Lee Bailey, etc.).  But in all the  posts, I've never seen anyone get close to any information that could be used to objectively rate the actual negotiators who will be negotiating the actual leases.  It's obvious to me that negotiating skill can vary by much more than the difference between 0 and 6 to 10%.  I would have expected at least one negotiator to have the cajones to post his CV, and that is one real consideration in negotiating capability.

Comment by R. East on April 10, 2012 at 3:18pm

David - I'm curious as to how the NWPA is structured. Do you have a broker, marketer or middleman involved or are you guys doing it on your own? If you're doing it on your own, congrats!! Someone is finally realizing that a group can form and, market the acreage on their own! There are several success stories in PA of groups that have "done it on their own" without the so called "experts".

Comment by David Hunt on April 10, 2012 at 1:14pm

Jim D. I think you know as well as every one else that NWPA. just started and hasn't done a deal yet. But I am confident that we will get a very respectible deal and like I said in a earlyer post we are local land owners that live here and work here and care about our property and water supply. We are here today and will be here tomorrow. I don't think you can say that about the other groups. Jim may I ask who you are working for? No one wants to put it out for people to know, You should be proud and if your not you are with the wrong group!

Comment by David Hunt on April 10, 2012 at 12:48pm

Jim L. Ok now we have names of Companies. We will do this one step at a time not to confuse you. Now what was the bonus payment for each deal. After you answer this question we will move on to the royalty but lets do bonus first so we keep this simple for you. And by the way you say there is no oil in Pa. Do you have any idea where the first oil well was drilled and do you have any idea where the longest producing well is located? PA.  And Trumbull Co. didn't get $4900. It was $3900. or $3950. and Mahoning Co is to the south of Trumbull not North. Just thought I would share some interestin facts with you. This lesson is on me

Comment by Jim Dickinson on April 10, 2012 at 3:26am

What companies has NWPA closed a deal with?

Comment by Jim Litwinowicz on April 10, 2012 at 2:10am

R. East;  a flipper is a company that signs leases and then resells them at a higher price and pockets the difference.  They often make more than a $1000/acre and several points on the royalty bonus. You need to properly use terms so that your position is clear to others that may not know your unique definition of the term.

Each person must make their onw choice...I fully support that. But they need to look at all the factors that come into play.  Local law firms usually work with whatever companies are in the area.  And the history has been that these O & G firms have delineated certain territories and do not stray into others, thus limiting competition. Plus, these law firms are not full time dedicated to oil and gas and related services.  They usually have just a couple of people working leasing instead of an entire staff.

Aggregating large acreage and bringing in outside competition is the best way to maximize their value.

Comment by Jim Litwinowicz on April 10, 2012 at 2:02am

David Hunt; Cx has done deals with Hilcorp, Range, CHK, Shell that I know of. There were others in the final negotiations of the Hilcorp deal. MoPo Law has done deals with several others.

Cx has not done any deals in Ohio that I am aware of....I'm just a small cog on the wheel...not even an employee. Thus they have not done the $5800 deals you hear about.  But that is because Ohio has oil and Pa does not. There is no one that got near that in the Pa Utica play. MoPo works in Ohio and has gotten more than the $5800 for their groups.

Explain to me why the Trumbel $4900 deal is so great when Mahoning right next door and just north got $5800.

Working with a local attorney restricts you to dealing with companies that are already active locally. That restricts competition. Only by aggregating large acreage and attracting outside firms like Hilcorp did we get double the signing bonus, two more points on the royalty, and no deductions permitted.  That would have been worth double the fees we paid.

Comment by R. East on April 9, 2012 at 3:50pm

Janice -My definition of a "flipper" is an individual or company that plays the role of "middleman" by convincing landowers they are "needed" in order for them to get a fair and resonalble lease.  All I am trying to do here is try to let landowners know that they do not need a flipper or marketer or middleman to get a fair and reasonble lease which will save them LOTS of money. Honestly, I have nothing against CX. They are like most other marketers/brokers/flippers/middlemen...they are just trying to make a buck (or millions of bucks) which is the american way. I understand that. But also, as a landowner, I am confident that most landowner groups dont need a marketer.

Also, by way of disclosure, arent you getting compensated in some way by CX? At least thats what you disclosed several months ago. Again, I dont have an issue with someone making money, but in your case you should let the landowners know what your deal is with them.

Most of us know the orignal guy that had been  marketing the 4 County Acreage. In any other agency in the world, other than the one he works for, what he does "on the side" would clearly be a conflict of interest and cause for termination from his position, but not in PA! I do applaud you and 4 County for finally realizing this. Perhaps my "group" in McKean/Potter would have joined forces with 4 County, had it not been for hiring this guy. We felt and still feel, what he does on the "side" is just plain wrong........for many reasons.

Lastly, I do not express my opinions at your meetings because I feel it may be disruptive to the CX presenter.  CX pays to hold these meetings and should have the right to express their opinions without interruption.

I wish all the landowners the best, whether they are working with a broker or doing it on their own.........

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