ATTENTION Landowner Group Members

The IDEA of "strength in numbers (acres)" is quite apparently agreed upon by many members. Let’s not forget that a portion of those "numbers' will not have a chance at the lease being paid.  Because if your "numbers" are not connected/contiguous to other "numbers" the valve of your numbers are not as appreciated by the potential LESSEE. And an outfit, no matter how financially secure, only has so much capital it is willing to spend/risk on a project.

Hypothetical Question: What if a group of 25,000 acres agrees to sign but only 10,000 of those acres are contiguous, what would be the incentive to pay the remaining 15,000 ac scattered all over the area? After-all, 10,000 ac would be quite enough leasehold to form producing units.

Also remember lawyers are paid directly from the amount of time spent "consulting" with the client(s) board leaders and it is very profitable to drag the process along for themselves. Every time a call/letter/email/fax is addressed concerning the process of your group.....cha ching, time is being billed. Another thing to remember, your area is not the
only area.....rather than drag it out, an outfit (especially a proven profit making producer not a flipper) just may pack in it and move to another more open-minded area and spend their money there. Which would leave your area open for another round of negotiations with another outfit and the much anticipated billed time for your friends at the law firm?

Hope you didn’t have plans for the bonus money anytime soon, yet the possibilities of a royalty check. Don’t worry, that new roof on your house/barn can wait (it isn’t leaking "that bad"). You can always wait for next year’s model of the truck/tractor you were planning on buying.  Paying off those loans can also wait...after all you've been paying on them for
years already. College tuitions can be paid for by the loans you were planning on getting anyhow. Your daughter’s/son's wedding will be fine downsized, their so in love it won’t matter. Vegas....you can do just as good at the local casinos that are closer to home and are popping up everywhere, you can’t afford to take that much time off of work anyhow.



Views: 13356

▶ Reply to This

Replies to This Discussion

Permalink Reply by time will tell on November 16, 2011 at 6:39am

Nelson , thanks for your comment and well put . My post wasn't for the deed problem landowners . I have had plenty of dealings with this industry and no I don't work for them .

I am trying to share threw my dealings what to expect from this necessary industry .

I have a great deal of info I could share but due to the rude comments of some I choose to share wisely and let them find out on there own .

As you put it Nelson the signing bonus is manna from Heaven ! 

Permalink Reply by Little Cougar on November 16, 2011 at 7:06am

h bo...don't let those rude comments get to you.  I want all the knowledge I can get...and that is why I speak up.  Look at today's conversation, I have learned so much, from Finnbear, Nelson and you.  I don't know it all and that is why I am here.  I still have more land that I'm negotiating...and any knowledge I can get helps me to question the attorney, the O&G and makes me not a target of ignorance.

I have read some of those rude comments and they seem to be coming from those in the industry/consultants that are trying to drum up business for themselves...note they won't answer questions about leasing but will answer about the technical questions of drilling...so please share your info...and if you don't want to do it on the forum, send emails to those you feel you can trust...

Thx

Permalink Reply by Nelson Roe on November 16, 2011 at 7:22am

I totally agree!  I am not here to ruffle feathers either, if I have done so at any point... my apologies.  I too am simply on a fact finding mission & trying to decipher the fact from the fiction is quite difficult on here at times.  I do try to stimulate conversations at times & will add in when I believe that I have an understanding of something, but I have stated multiple times, I am not an attorney or an industry person, most of what I have learned has been through conversations on here (quite a few in person as well), or through reading various articles/publications on the web, so my understaning of certain things could very well be way off base.  I welcome & invite corrections so that I can build on my understanding & knowledge.  I truly appreciate those that share their knowledge as well.  I just wish everybody could stay civil in doing so.

Permalink Reply by time will tell on November 16, 2011 at 12:55pm

Nelson , you can add me to your friend list and I will try to help however I can.

Permalink Reply by time will tell on November 16, 2011 at 1:11pm

Thanks for your kind words LC . I look at them and compare it to trying to teach a Ant math . If I can help you LC you can add me to your friends list if you like .

I always thought that it was wise to listen to those who had dealt with what one was trying to learn ,,,

Permalink Reply by Amanda on November 11, 2011 at 1:01pm

I am on here trying to make sure my Mom has the best options available to her.  She paid $60 fee to join a group (processing fees); however, the group is NON-Profit.  They are not scraping anything off of the top, nor are they getting any percentage of the royalties.  This group has already gotten great leases for the group members.  We are waiting to see what my Mom is going to get.  She is being very patient, and is actually hoping they don't make any agreements until after the new year (for taxes reasons).

I think, if you can get into a good NON-Profit group, you're doing great.  Even if you have to pay to be in a group, you're better than going it alone.  I do see the advantages of just getting a good attorney too.  I've learned a lot from this site.  Pros and cons of all angles.

Permalink Reply by Amanda on November 11, 2011 at 7:20pm

Thank you for the info....much appreciated.  I am so happy for my Mom if it all works out.  It doesn't seem like she can go wrong here.  She got in on the VERY LAST day to sign up with this group too.  I think God is really smiling on her.  Our family has been through so much in the last couple of years and she deserves this. 

Do you have any idea what royalties and bonuses are looking like in the Trumbull County area?  Or have you heard at all. 

Also, a rumor was going around that Chesapeake dropped out.  Not sure if that's true or not.  Even so, I'm sure there will be some company interested.  I've heard there are several interested actually.

Permalink Reply by George Brown on November 11, 2011 at 3:39pm

I don't think you can go wrong for $60!

Permalink Reply by Amanda on November 11, 2011 at 7:22pm

Yeah, that's what she said also.  In the beginning, when it seemed too good to be true and it wasn't really talked about too much around here, she said, "I'll only be out $60 if this doesn't pan out.  At least I'll know either way." 

Permalink Reply by Tracy Packer on November 15, 2011 at 5:04am

GREAT POST!!! Way to go Cougar and Glenn!!

I'm in Texas and they don't do "Group's" down here. Maybe a little bit in the Barnett Shale Play in the Big cities. It's crazy how many people form groups in the North.........I think mainly in OH and some in PA. I completely agree with you guys. 

 

 

Permalink Reply by Little Cougar on November 15, 2011 at 4:11pm

Thank you, Tracy...sometimes these northerners get a little too uptight...I lived in Texas many years ago and my son was born there...loved it.  Never wanted to come back up here.  But life takes many twists...and as to my post and Glenn's, I guess you can put it this way Glenn and I are our own "man and woman"...always have been a loner...leery of those who keep wanting to organize...problem with this country...too much organizing!

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on November 15, 2011 at 4:48pm

Thanks for the compliment Little Cougar! I guess we still have enough of the good old American Independant Spirit to see us through. Some folks are too easily led and there sure isn't any shortage of "leaders" all too happy to help them part with some of there money!

Thank you too, Tracy! It's good to know there are others out there who think like Cougar and I. God Bless Texas!

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service