Cost of joining a landowners group?

Just curious what some others have paid to join a landowners group and what some of the costs they've run into.

 

 

Currently looking to join one in Crawford County and wanted to make sure the fees are in line.

 

 

Cost is as follows:

$100 per landowner + $2.50 per acre

 

Cap of $750 per landowner.

 

 

So far it looks like there are 250 people interested with 23,000 acres.   If everyone paid and all acreage was included, total fees would be $82,500.

 

 

The cost for me would be around $225 which I find very reasonable but I always like to check.

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Permalink Reply by rex roae on October 31, 2011 at 5:33pm

JMS, can I ask which landowner group you're a part of?

 

 

I like the fact you don't pay until a lease is negotiated and signed. 

Permalink Reply by JMS on January 11, 2012 at 6:35pm

Sorry I missed your question...It's BCLG - Butler County Land Group.

Permalink Reply by ShaleAdvice (Steven C. Townsend) on November 1, 2011 at 12:16am
Why do you pay $10 + $25 and then still have to get your own attorney to make sure your individual lease fits your needs?  It sounds like a marketing agreement whereby they convince you that they know who to call to market you land.  The names and contact information for the O&G companies isnt worth that kind of money.  What happens to your individual addendum?  Does the money you paid up front cover the cost of hiring an attorney?  Why not skip the marketing and get the lease and addendum written by an attorney in the beginning?   
Permalink Reply by JMS on January 11, 2012 at 6:40pm

Again, sorry I missed your questions...

The $$ are used to pay for an attorney and an environmental expert, both of whom are helping to write the addendums.  I think the suggestion to hire an attorney, is to make sure you are happy with the lease and the addendums, before you sign, because once you sign, THEN you owe the $25 per acre.  I'm sure if one feels knowledgeable enought not to hire an attorney, it's not a necessity.  For myself, I may want to make sure that all that fits my individual needs is included.

Other than a Pugh clause, I don't know what kinds of addendum options would meet my needs, so I'm okay with getting all the advice I can.

 

Permalink Reply by Country Bumkin on January 12, 2012 at 9:43am

Attorneys are getting as bad as landmen in some areas.  Careful what you sign b/c they smell blood in the water and stand to make HUGE windfalls in these land deals.  The whole idea of a group is that all the people under it follow the same terms and conditions of the lease.  It makes it more marketable to gas companies.  If there's 25 different leases with various addendum, it makes it hard as an operator absorb so many different operating conditions.  IMO...I personally think groups are both good and bad....Good in that you generally get better terms, bad b/c you can't please everyone.  It's not rocket science to read and understand a lease.  Everyone should take time and study a lease for weeks and KNOW what it says...Look at it not only from your perspective, but also from the operators stand point.  I'm just saying....

Permalink Reply by RichR on January 12, 2012 at 10:17am

If you want to read a good example gas lease look at the Friendsville Landowners Group gas lease, it was made up in 2009 out in the Bradford County area.  It covers most of the major items needed for a good lease.  http://www.thefriendsvillegroup.org/lease.pdf

Permalink Reply by owner on January 12, 2012 at 10:31am

Thanks Rich, the lease that you put up is the kind of information that is extremely helpful to those of us who are still going through the leasing process! 

Permalink Reply by RichR on January 12, 2012 at 10:41am

I might add that the Fryburg Landowners Group lease had many of the items as in the Friendsville lease.  This is where being in a group and not being in a rush are big helps.

Permalink Reply by James Kerns on January 12, 2012 at 2:45pm

Sounds reasonable in comparrison to some that charge a percentage ( which i dont agree with). I am an ALOV Trumbull county member, its a closed group now, and they had three groups before mine. They were a non profit i believe, and charged $60 per member flat fee, great i think. Buckeye Mineral Development, a spinoff from that org. charges 2 3/4% of bonus money, i have heard of 4-5% of Bonus money fee to arrangements like you speak of. Good Luck 

Permalink Reply by Bill White on January 18, 2012 at 4:24am

No landowner should have to pay to join a gas coalition.

Permalink Reply by william mottern on January 18, 2012 at 11:33am

bclg costs ten dollars to join but 25 dollars / acre if lease is signed

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