Replies to This Discussion

Permalink Reply by JK on October 26, 2011 at 5:25pm

I believe earlier today I saw a posting of paying just $10. to join a land group.

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Permalink Reply by RichR on October 27, 2011 at 1:59am

The Fryburg Landowners Group collected $50 per owner.

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Permalink Reply by Gunner Ostergard on October 27, 2011 at 3:24am

Just be sure to steer clear of anyone wanting a percentage of your future royalties.

 

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Permalink Reply by ShaleAdvice (Steven C. Townsend) on October 27, 2011 at 9:48am

You shouldn't be paying any monies to join a landgroup. 

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Permalink Reply by RichR on October 27, 2011 at 10:15am

They need some form of funding in order to cover expenses.  A reasonable outlay should be expected from members.

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Permalink Reply by 2s72s0k9mm8gd on October 27, 2011 at 11:12am

You folks really seem to have your stuff together. Real Grass Roots efforts! In my area there is a group charging 8% of signing bonus and 5% of your 1st 5 years of royalties. They just signed a deal that @8% of signing bonus alone with 20,000 acres = 4.8 MILLION . Not to mention the royalty percentage they (the lawyers) will accrue. Likely many more millions to be sure. I hear they got some good addendums though. I just want to commend all of you out there striving for the common good and not driven by profit! Keep up the good work. An honest man's pillow is his peace of mind.You will be rewarded.

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Permalink Reply by 2s72s0k9mm8gd on October 27, 2011 at 11:44am

In fairness these folks got some good addendums like Pugh clause , depth severance , etc. They got $3000/acre and 17% no deductions too. ($2760/acre after the 8% deducted.) From what I hear they are satisfied.

Just knowing the immense potential for profit that is out there , it is refreshing to know that good old fashioned "working for the common good" is still alive and well in this great country. Keep up the good work and all the best of luck in your endeavors.

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Permalink Reply by Little Cougar on October 27, 2011 at 12:15pm

To add to Jill's post about watching those wanting to buy your royalties...it happened to me...and I played along to see what would happen.  Within a 5 minute conversation the dude went from 1500 an acre to 2000.  I said put it in writing and he did the following day.  I got the email and I very politely responded with a definite no...that his offer was too, way too low.  He came right back very defensively but still left the door open hoping I would change my mind.  I knew the minute he jumped the price that something was up.  So I started doing my research and sure as shootin'...about 2 months later the very property he was after, I received a 5 month retroactive royalty check for 2 new Marcellus horizontal wells and found out that more wells are in the process of being drilled.  As I said in early posts, I only own 1/5 interest in one of the leases in this unit and had only royalty rights but not executive rights and he knew that.  If I had fallen for his bull, he would have made his investment back in 2 months. So as you say, Jill, everyone should be very careful.  These people know where to look and they have the info or they wouldn't be contacting you.  We must keep each other informed about all this so we don't lose out.  I know its hard for some when they may be out of work and need the money.  But if they are that quick to come after you...they know something and trust me, its going to best if you hold out and just be patient a little longer.  Patience is the name of the game!

 

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Permalink Reply by Dave on October 27, 2011 at 10:53am

For 100 acres it's $350 that has to be paid upfront.  You have no idea if there is going to be a lease signed or not.  Who says that in a year there going to give up and they just have all that money.  I can see if attorneys were involved then all the money would be used, but if there is no lease to look at then where to attorneys come in to play.  Just trying to get some info just like rex cause i'm all new to this and don't want to lose money.  I can see paying alittle bit then when a lease is going to be signed pay more. 

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Permalink Reply by David Hunt on October 28, 2011 at 12:21pm

 That doesn't sound like a bad price to me. If  I don't join and this group gets some record breaking deal I would be pretty depressed. Kinda like that guy down south a few years ago that was ask to put in $ 5.00 for a lottery ticket with 5 other coworkers and he said he couldn't afford it and they would never win.  They won several million dollers and A few days later they found him hanging from the rafters in his barn. I think I will pony up and join so that is not me hanging from the rafters. I own 128 acres and $420.00 could be pocket change if they get a good lease. Think about how much money we waste on beer, cigarettes, fast food, cell phones, internet, Cable, And all the other things we can live without. Just my thoughts

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Permalink Reply by gary smith on October 28, 2011 at 12:32pm

do some of the ohio land groups have lawyers and oil and gas people who live in their area volunteering their services? that would have some bearing on the joining fees. the crawford group has no such 'free ' help that i have heard of . just honest people.

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Permalink Reply by JMS on October 31, 2011 at 3:35pm

Our landowner's group is asking $10 to commit to the group.  Once a lease is negotiated and signed, the members will pay $25 per acre owned, AFTER the bonus check has been received.  For me that will be about $800, which seems like a reasonable sum for all the leg work that's being done.

The group is working with an attorney and an environmentalist who are working on gathering the list of addendums,  and the negotiations are ongoing with 3 companies. Also, alot of effort is going into promoting the group in order to increase the group's size and total acreage.

In the end if we negotiate a lease for more than $3250 per acre and 18% gross royalties...I will be one happy camper!!

There is no commitment to sign once the lease is negotiated though; and it has definitely been recommended that each member have their own O&G attorney review the lease before signing, since each person's circumstances are different. 

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