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Comment by Two Dogs on September 30, 2010 at 2:06pm

Lynn that website helped form the groups then destroyed the groups. That is why you don't need to pay someone to negotiate the deal for you and take part of your bonus and royalty. I am not saying that you don't need an oil & gas attorney to look over the lease, only that you can get a first hand view, from many professionals, at no cost to you, at how to draw up what is important to you in the lease form.

Comment by Oil and Gas nightmare on September 30, 2010 at 1:40pm

We have to do what those guys are doing on that site...listing royality payments and gas prices...whos doing what and for how much they are doing it for...its the only way we can make sure no one gets screwed, well and even then..your probably getting screwed. LIKE i did not know that CSPK for example sells the gas to their sister company CSPK mineral for $4.00 and you get royalities based on that not what they sell it for in the market...like say if its going for 8$ they sell it to their other company first and you get the samllest royality you can get becasue they "sell" it to the other company cheaply and then resale it higher after that....THATS BS!!!!! HOW cant hat be legal...how do you avoid that in the lease lingo? or can you? Is it just big guys? i read it is a common practice but how can you make sure or can you that they pay your royalities based on the $8 they are selling it for the second time they sell it? why WHYWHWHY...IS THIS LEAGAL? they are making so much fing money it makes me sick that the little man that NEEDS the money and not for their lear jet but for a mortage payment is getting cut out of the true profits...we have to be able to do something about this....

Comment by Two Dogs on September 30, 2010 at 1:00pm

Lynn if you are the last holdout on the 640 then you will get a good deal or that is the way it is down here. I have never worked your area and probably never will so I don't know the laws governing unitization up there. I am a lone wolf Landman that likes wildcatting so the shale projects are not for me, I don't work well with others. I am closer to the land and mineral owners then I am to other landmen. Many landmen are tramps that work together on crews traveling around the country working for whoever pays the biggest bucks. I like to be in my on bed every night over money.

Comment by Oil and Gas nightmare on September 30, 2010 at 12:24pm

two dogs...YOUR The MAN...I just checked out that website VERY VERY helpful..thats wonderful excellent information, that has already happed to these people that have been down this road..Awesome..THANKS FOR SHARING IT !!

Comment by Oil and Gas nightmare on September 30, 2010 at 12:14pm

Good advice..I do agree with you..infact that is exactly what I am saying :) I think people are playing their hands to quickly..I gess I thought more favorably toward land groups simply for the drill factor. I really still dont know the answer to that...arent they all trying to get 640 acres period before they actually drill? perhaps they are but everyone is not on the same lease so therefore, we really dont know...but isnt that the rule? will they drill with less?

Comment by Two Dogs on September 30, 2010 at 11:57am

Lynn if I were you I would play it cool and just sit back and wait. I have no dog in this hunt, just trying to learn a little about the play and help out when I can. I had a young fellow that I leased his shallow rights. He was so anxious to lease his property and his relatives around him and kept talking to the companies that he showed his poker hand and leased to CHK for $3500 per acre. I kept telling him to not contact the companies and to wait for them to come to him, after it was all said and done he called me and said that he should have listened to me. A lady just down the road took my advise and stayed in contact with me and got $14,500 about 2 months later. She got $1000 more per acre than anyone else in the area. Parts of Louisiana are more sophisticated when it comes to oil & gas especially South of Interstate 10 but the folks in Northwest LA have gone to school in a two year time frame thanks in part to Keith Mauck and his website www.gohaynesvilleshale.com. Keith didn't know anything about oil and gas when he started the website but many professionals joined as the months went by and started helping the folks out. Now it has become a powerhouse that the industry monitors. This site can become the same thing when the trolls that lurk here, trying to get into your back pocket, are weeded out for what they are. Trolls are spotted and called out almost as fast as they speak on the Haynesville site and it will become the same here.

Comment by Oil and Gas nightmare on September 30, 2010 at 10:59am

question for two dogs...is the area you a speaking of an area where this has been done for years and years? In La. this has been going on for a long long time...so would it be that land units are no longer needed because everybody that does have a dog in this fight has been signed and resigned and there is a standard of what to offer and what to accept as fair? I think this rsh of the marcellus has created the need for informed decisons and these small coal mining communites need to create the standard(how much $$ for your rights) before the land unit idea fades away, but I agree there will be a time when it is not needed. :) its just not right now in the start of the game..

Comment by Oil and Gas nightmare on September 30, 2010 at 10:50am

Awe I do understand that holding out and thinking something better will come is a fine tuned game of poker...I will give you that, but in Greene county (my area not sure about ohers areas), here in Greene the reports from wells drilled here is triple what they thought it would be...this is info provide by the state, i posted the reports on my page...check them out. Then look at the reports from teh gas companies(the eqt report) theselves and they are also reporting way higher than expected royalities, so if everyones hitting the jack pot in Greene county, then its an educated game of poker with the odds in your favor... Simply put, if you are researching your area and no ones making big bucks or the reports are unfavorable, then yes, maybe you should jump at a offer. BUT if all the research(and you must do a ton, not just one google search) if all of that research is very favorable to you and your area, you should expect more...trust me, they are going to make more, so why not. You have to do the research, and then triple check that, you cant let pride or self assessed value influence your decision, and then you can play your cards to win.

Comment by Two Dogs on September 30, 2010 at 10:35am

I haven't seen anyone in Louisiana sign a 10 year lease in years other than the federal government. When the Haynesville first started you saw these groups start to form but now you don't see them. If they were so great why did the folks stop using them? All you really have to do is go to the courthouse and look up someone that you know to be a savy person in dealing with the oil and gas industry and get a copy of their lease and demand that the Landman give you the same thing. The norm in the Haynesville is 1/4 royalty with a 3 year primary term with the option to extend for 2 additional years. The bonus varies as to the quality of the shale. The more the play matures, the more will be learned of the quality. Some areas that received high bonuses turned out to be crap compared to areas to the South that were drilled later. Those who joined these groups and were holding out for more money were left with egg on their face when the southern part of the play started bringing in wells that produced 3 times more gas.

Comment by Dave Stewart on September 30, 2010 at 9:29am

I'm in Monongalia County, WV. Trying to find who has the lease rights in my area looks like it will be a monumental task. It will be very hard to find them all. The records at the courthouse aren't well indexed. Then, as Lynn mentioned earlier, a lot of them are probably leased with varying expiration dates. And I don't believe WV has the rule that if you are going to drill and have 75% (I believe) of the rights under your control, the others are forced to be included.

I recently found we have the rights to 80 acres, and I would love to form/join a group of "neighbors|". And I have found a lawyer that seemed to be perfectly willing to do whatever is wanted on an hourly basis. I agree that the up front payment is crucial. The gas isn't going anywhere. And the price will probably be better in 5 years when/if this recession gets better.

However, I am not sure on how to over-come the problems in finding neighbors and putting together a solid section. If I were to work the courthouses full time for a month or so, i might at least find the neighbors. But that doesn't resolve how you resolve the varying end dates of current leases. I would appreciate any suggestions on these issues

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