Comment

Comment by Oil and Gas nightmare on September 30, 2010 at 6:58am

Isnt really about the commitment to drill, that makes a land unit better than having say 100 acres? In as they will drill forsure when you have 640 acres? does it insure you(as much as can be assured) that drilling will go down sooner? or does that even matter?

Comment by Jon Laughner on September 30, 2010 at 6:39am

Keith, Glad you posted this. As someone else here has said, we employ other people to handle things we don't want to take time for or we don't have the skill or knowledge. However, there are many very good consultants with legal expertise who charge 2-3% fee of the lease payment.

And, some landowner groups employee the legal expertise on an hourly basis. I've seen allot of these successfully negotiated and the cost to the landowner turns out to be $6-10/acre. A far cry from some of those percentages mentioned. So, as mentioned, it takes a much higher lease payment for it to make sense.

What's a high fee? It is very subjective and is up to each of us to determine for ourselves whaqt we are comfortable with. Take a few minutes and push a pencil around an envelope to evaluate the cost/benefit of hiring a consultant.

However, let the free market reign. Just keep your eyes open, talk with neighbors, and ask allot of questions. Just make sure you have an expert legal oil and gas lease contract person on your team. And, don't forget to speak with a financial planner/CPA before signing a lease.

Comment by Mike Winesburg on September 30, 2010 at 3:48am

The fact is not everyone has the ability, time and/or desire to do it themselves. In that case it makes perfect sense to pay someone else to do it for you. in return they are compensated. The same reason you would pay someone to cut your grass, clean your house, build your deck or change your oil. Sure we're talking very different numbers in this case, but the same principle applies. You pay for convienence and expertise.

Comment by Keith Mauck (Site Publisher) on September 30, 2010 at 3:26am

Mey Mike,

Well, because you can pool your property, either in a large non-fee based landowners group or a more informal group, without a large % based fee. There are exceptions to every rule, but I have generally found that if you have the time, you can either produce the same results, or come close enough to where the 5% is cost prohibitive.

We tried it both ways and we found, based on other's results, that an informal pool was equal to or more effective than paying a negotiator. Plus we pocket more $.

And I actually enjoy giving myself the nickel when I can have the ability and capability to do so.

Comment by Oil and Gas nightmare on September 30, 2010 at 12:05am

also people are taking way less than its worths, thats more disturbing than 5%, although I am starting to see what you mean there...its really kind of up to me to find a company asap. There just kind of there otherwise. I thihk that gas companies would seemingly rahter work with individuals BUT thats in my opinion becasue they can take advantage of one person alot easier than 20... and if they hated it so much, why are we reading reports were land units are getting $7500-$14,000 per acre and the single person gets $1500-3000. there has to be something favorable in that that the companies see an increased valuse in the land...plus if you are one the same lease for miles and miles as your neighbor, then that clause thats say basically "hey if your neighbors lease hasnt expireed yet but we are getting gas we have the right to keep you in a lease after it expires up and unitl your neighbors expires...and if 5 people have different leases in your area, your lease that is supposed to garner a new bonus every 3-5 years now is extended for 10 or more years...none of that sounds good to me but it does sound good for gas companies. lawyers, yep i dont know that Iease the urgency in getting a lease for people that need it like yesterday. gas companies do look for the land owners but half of them dont have the mineral rights, so they are only going to look so far and ten they are going to move on the next person that does, atleast thats wht i have been told :) what cha think?

Comment by Thomas G. Chiacchio on September 29, 2010 at 5:06pm

Does anyone have any information on potential gravel extraction and sales?

Comment by Oil and Gas nightmare on September 29, 2010 at 3:05pm

how about land units for green county can we get them toether
?

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