Comment

Comment by Dee A on May 30, 2012 at 12:58pm

You really like to seek out things just to debate don't you?  

What I said stands. There are only very slight differences. In one case you are on the record of having received 4.2k, then you deduct what you paid the attorneys on your taxes. On the other case, you are on record as having received only the 4k and don't have to deduct anything.

In any case, this is just really goofy to argue about.

 

 

Comment by Utica Shale on May 30, 2012 at 12:41pm

@ Dee_A,

 In both scenarios the Driller paid $4,200 per acre.

 Case #1- $4,000/acre to landower & $200/acre to Negotiator

 Case #2 - $4,200/acre to landower

 In both cases the cost to the Driller $4,200/acre.

 Where is the benefit to anybody?

 If the 4.5% does not come out of your signing bonus then you are suggesting that if paid directly the money/cost was a "special gift" by the Driller directly to your negotiator? Really?

 

 Please tell me the the tax advantage when you get a 1099 from the Driller for the $200/acre that the Driller paid to YOUR negotiator on your behalf. If you do not get a 1099 for the $200/acre then the IRS may have problems with you and your negotiator since the negotiator worked for you but the negotiator is paid by the opposing party (the driller).  If you do not get a 1099 for the $200/acre then is that "hidden" income to you then considered Tax Evasion?

 

Comment by Dee A on May 30, 2012 at 12:06pm

It's impossible to know whether that's true or not. It might just as well have been a case that the O&G Co. said we're paying no more than 4K per acre, but the legal team was able to push the final amount up by having them agree to pay the legal fees. There also may be tax benefits for the landowner should they be on record as having received 4k rather than 4.2K

Comment by Utica Shale on May 30, 2012 at 9:29am

@Steve Wagner,

"... no landowner has had to pay the 4 1/2 percent. They have negotiated it so that the O&G companies pay it for the landowner!! ..."

 

 And so you get a Signing Bonus that is 4.5% lower than the landowner who does pay the negotiator directly.  You gained nothing by not paying the negotiator directly. I get $4,200/acre but I pay the negotiator $200/acre, so I net $4,000/acre. You get $4,000/acre and the driller pays the $200/acre to the negotiator. What is the difference? Either way YOU did pay the negotiators fee out of your Signing Bonus. So, the 4.5% does matter.

 

Comment by Steve Wagner on May 29, 2012 at 11:10pm

Dee, You're right, If you don't like the lease they negotiate for you, you don't have to sign and you're also released from their landowner agreement and owe them nothing, unless you sign with the same O&G Co. that they brought you!

Comment by Steve Wagner on May 29, 2012 at 10:41pm

I believe that so far, no landowner has had to pay the 4 1/2 percent. They have negotiated it so that the O&G companies pay it for the landowner!!

Comment by john on May 29, 2012 at 9:26pm

Thanks for the info!

Comment by Dee A on May 29, 2012 at 7:35pm

John, you should visit the SEOLA site. They are not flippers, it's a land owners group represented by several attorneys as well as Dr. Robert Chase of Marietta college. If, and only if, they successfully secure an agreement that you also agree to, their % is 4.5 (percentage base means they have a vested interest in getting as high a price as possible) I believe which I feel is very fair with the professional services they are providing. They have very strong land owner protections and have negotiated several great deals already in other counties.

Comment by Dee A on May 29, 2012 at 7:25pm

Steve, one of the things I like about SEOLA is that just because you sign up with them doesn't mean you have to agree to anything or pay them anything...unless you sign the lease they have negotiated or you sign with the same company that offers the lease. You can choose to go independant at any time I believe. THis is part of the reason I also really like SEOLA. Here's from their "Process" page:

[1] A landowner is not required to sign the lease. If the landowner decides not to sign, he or she may negotiate his or her own lease, but will be obligated to pay the attorneys’ and engineering fees if he or she decides to sign a lease with the same company as the Association. This protection is built into the landowner agreement to make sure oil and gas companies do not try to divide the association, and to protect the majority of landowners in the association.

The fact that Reed said they could "get you out of it" sounds like shady double talk.

Comment by Steve Wagner on May 28, 2012 at 10:25pm

Here is their website. They have made three succesful lease agreements so far. you can read about the agreements here:

 

http://www.seohiolandowners.org/Press.aspx

 

They are close to a  deal for their southern Noble Co. members and they are negotiating also for the washington Co. members also. I believe that is all that remains in their membership, I might be wrong on that but i believe that would be all.

 

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