Replies to This Discussion

Permalink Reply by scott peterson on August 4, 2011 at 11:28pm

will be stopping by on sunday

Permalink Reply by scott peterson on August 5, 2011 at 2:20am

You mean a drilling co. offered that or that is the lease value that Jim is trying to negotiate?

Permalink Reply by scott peterson on August 5, 2011 at 2:27am

Very encouraging! Any idea who?

Permalink Reply by scott peterson on August 5, 2011 at 12:02pm

Ask him who if you dont mind....

Permalink Reply by DM on August 9, 2011 at 6:25am

Does anyone know with a group like KWGD, if one person gets paid their bonus money, everyone in the group will get paid their bonus money?  Once a drilling company commits to a group, can they pick and choose who they want to pay or do they have to pay eveyone and then worry about shopping around the unwanted tracts of land within the group to other companies?

Permalink Reply by scott peterson on August 9, 2011 at 6:27am

They take all in the group & all get paid.

Permalink Reply by DM on August 9, 2011 at 7:30am

Thanks Scott.  Looks like I will be at the KWGD meeting tonight and will be signing with them.

Permalink Reply by Finnbear on August 9, 2011 at 9:23am

If the group negotiated properly with the O&G and prepared a good contract, the O&G has to take ALL the group acreage which must then be vetted to ensure the lessors really own the mineral rights. Everyone who actually owns their mineral rights gets paid after the title work is done. A not-so-sharp group might forget to include language in the contract that forces the winner to take all the group's acreage and the  O&G could then cherry-pick the acreage they want and cancel the rest of the leases. It sounds like a really underhanded thing to do and it is, but it has happened before. Lease wording is SO, SO important. If it aint in there, it AINT in there.

Permalink Reply by DM on August 10, 2011 at 1:43am

About 200-250 people at the KWGD meeting last night.  Very good presentation.  They estimated to have 15,000 acres in the group by the time they close the group. 

Permalink Reply by Jeremy on August 10, 2011 at 2:57am

Dave,

Since you went to the meeting, are they giving any indication as to what they hope to secure for the landowners in regards to signing bonus and royalty?

Permalink Reply by DM on August 10, 2011 at 3:26am

I'm not sure what I'm allowed to disclose, but I will say in their past groups they said they got above the market value for signing bonuses.  They asked what everyone had been offered so far and it is my opinion they will shoot to do a good bit better than what has been offered locally.  The royaly is out of the gross and it is slightly better than anything else I have heard around here.  All in all, best lease I have been offered in the past was 17% and 2450 and it is my opinion that the KWGD group will get more than those numbers.  More importantly, there are lots of protections for the landowner.

Permalink Reply by edward thomas on August 10, 2011 at 8:11am

Dave,

Were all attendees from Guernsey County and, if so, what section  of the county?  Thanks

Edtom

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