Meeting with WKGD

 Were any of you in attendance at the meeting with KWGD on Monday at the PLCC. I was there and was totally surprised by the number of people in attendance. What were your thoughts about the meeting? I found it to be very informative.

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Replies to This Discussion

Permalink Reply by Philip Dobeck on August 1, 2011 at 8:42am
Permalink Reply by Nelson Roe on August 1, 2011 at 12:53pm
Thanks Philip.
Permalink Reply by Jeanette Krunich on July 27, 2011 at 7:35am
I am sure KWGD is a very experienced and knowledgeable.  They have been down this road many times.   My only issue with a group like this is the money they charge each landowner.  4% is alot, I think.  Personal opinion.  Also, it is our land and somehow I think we ought to negotiate for ourselves. 
Permalink Reply by Nelson Roe on July 27, 2011 at 2:48pm

Hi Jeanette,

I am not totally disagreeing with what you said, however I believe that the group organizers probably do a good bit of work for the money that they get from these deals.  They do the negotiating, KWGD actually drafts their own contract, they do not use the standard O&G contract that gives the driller all the rights in the world, then try to go back & write ammendments to rescind the rights that were given in the original contract.  The draft contract that they have only grants the drilling company the rights that they are to receive.  As far as 4% being a lot...  I guess it is a large amount, especially when you figure all the landowners that they will probably have in the group.  However, it is the lowest percentage out of any of the group reps that I have talked with.  I have met with 4 or 5 groups & the others were talking about taking percentages of anywhere from 5 - 8 %.  & a couple of those groups even had the stipulation where they were to receive 1 or 2 % of your royalties after the initial negotiations were over.  As far as I can see in any of the verbiage, KWGD is not going to be cutting into the royalties & are charging the lowest percentage to represent.  They have also successfully negotiated for 5 groups already, so they have a working relationship with at least some of the drilling companies.  I am not usually one to recommend a "middle man" in any process, but, unless you can organize a group of neighbors & pull together at least 640 acres or more, I don't know of any individual landowner that is going to be able to negotiate with these companies the way that the groups can.  But again, this is all my opinion that I am basing off of talking to the 4 or 5 group reps & probably 7 or 8 different companies in general.  I am by no way an expert, but am trying to do my homework & share what I am finding along the way to be utilized as the readers see fit.

Permalink Reply by Jon Henderson on July 27, 2011 at 3:30pm
I must say that I have read several contracts from various O & G companies and the one described by KWGD is certainly "LANDOWNER" friendly. There is no way I would have thought to protect myself the way they are describing. I would have taken a seemingly "Good" offer and run with it. They are protecting the landowner from some unfriendly lease terms. I certainly think that is worth 4%. It's a lot less than Uncle Sam is gonna take, plus it's deductible off of that (I think) so that helps a bit.
Permalink Reply by Nelson Roe on July 28, 2011 at 2:16pm

Hey all,

For anyone that is interested, I am seeing on some of the other discussion boards that there is supposed to be another meeting for KWGD at the Pritchard Laughlin Civic Center on 8/9.  The way they are talking, it is another open to the public meeting.  I may show up for a few just to see if they have any more details about where they are with forming the group.

Permalink Reply by Nelson Roe on July 31, 2011 at 2:52pm
I just found out that this will be their last public meeting before starting the actual group meeting which are only open to those who have signed the engagement letter to actually be a part of the group.  So, if you have not attended one of these meetings yet & you are still trying to make up your mind, I highly recommend attending this meeting on the 9th. 
Permalink Reply by Steven Gardner on July 31, 2011 at 11:56pm

Regarding the 4% ... I don't mind paying someone for their expertise if they are truly bringing something to the table and you are getting something of value. In KWGD I feel I'm getting that. Some of the other LLC groups that formed early this year .. I don't think so. Even in an ideal "landowner only group" there are costs that will be paid and those dollars will not go to the landowner.

 

There are many perspectives and if you were lucky enough to beat the low-ballers and kept informed with your neighbors you're in good shape. In my area the low-ballers took a lot of acreage early and its been a struggle to get people organized plus the tracts are small. The KWGD group approach is to look at it county wide and provide an opportunity for all to get a good lease regardless of acreage or location.

 

Good Luck to All..

Permalink Reply by Jon Henderson on August 1, 2011 at 5:55am
I agree with you. We are all better off being well informed and having group negotiating power.
Permalink Reply by Jon Henderson on July 30, 2011 at 2:54am

I know many of you have heard the Chesapeake news from the last few days.

While I was looking at the Harrison county forum on this site I found a very informative newspaper article about the possibilities for Eastern Ohio. It has a little more detailed information than just the press release... http://www.heraldstaronline.com/page/content.detail/id/562230.html .

Permalink Reply by Nelson Roe on July 30, 2011 at 3:12am

Nice!  This article along with the actual Chesapeake release definitely makes one think that something is actually going to come out of all of this & it is not just all hype!

 

Permalink Reply by Philip Dobeck on August 17, 2011 at 3:17pm

FYI

I received an email today from  

Homeland Energy Ventures

A meeting for all interested Guernsey County and Surronding area landowners

Thursday August 25, @ 7 PM 

 Francis Family  Restaurant, Wheeling Avenue, Cambridge Ohio 

Many of my Spencer township neighbors have signed with them and at last month's meeting they had

maps with several areas in Guernsey county they represent and they were actively signing more.

They also have scheduled  meetings in Holmes County, Check their website!!  

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