Why sign a lease if your not getting paid?

  I have seen so many complaints in here about lease bonus payments that it is rather a PR problem for the O&G companies.  We know that there are O&G companies that snoop in this site and pick up upon comments made here. So with that in mind perhaps we can make some suggestions that might help everyone!

1. Do not sign a lease without doing some research upon your property. It is rather ridiculous for a land owner with a oil well in his back yard to be signing a lease with the expectation of getting a hefty bonus in that situation. It leaves a lot of wasted time on the O&G companies, anxiety for the land owner and disappointment when they are rejected.

2. Listen up O&G companies! You might want to establish a better time frame for payment! It looks bad upon a O&G when they can not comply with the terms that for the most part they themselves are setting. Perhaps a reasonable time frame and place a per day penalty if you exceed the payment time you set. But insure the payment is called a penalty to be paid weekly without fancy language that allows a extension. In no case should a lease be filed without payment of that lease to the land owner first!

3. We can appreciate the fact that it takes time to research property records but when a company's reputation  is subject to public opinion as seen in GOMS to perspective Lessors the practice of acquiring leases and paying for those leases needs to be addressed.

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Replies to This Discussion

Permalink Reply by Kathleen on April 25, 2012 at 4:56am
As of right now I do not see this as a public relation issue with the O&G companies since I do not see the news reporting on this. All I see is bonus amounts people were offered and signed for or cities deciding to lease or not. People on the outside have no idea this is happening, this needs to be corrected. I hope people that had clear title write to the editors of the local papers, call some reporters, do something but call the company after your bonus payment should have arrived. I would hate to see the gas co. quickely blame this on people without the rights being the only ones not getting paid. 120 days is long enough. I signed with CHK late January and the court house was jammed packed but somehow I got paid in less than 25 days. Again 120 days IMO is long enough.
I read these stories and I feel for everyone waiting and hoping. It's unfair and cruel to a landowner with clear title.
Permalink Reply by Billy Park Whyde on April 25, 2012 at 5:09am

It is a PR problem when we that have not leased as of yet see this happening. With other competition by other companies to choose from it does effect a land owner decision as to who they may lease to.

Permalink Reply by Kathleen on April 25, 2012 at 5:22am
I agree for the people who visit here or other places that may discuss this issue but honestly more people are not here than are. The papers need to be notified or the local news, and someone needs to run a story and name names.
I never would have thought shell a major co. would be pulling something like this in one of the counties. Shame on them! The word needs to get out further than this site.
Permalink Reply by Billy Park Whyde on April 25, 2012 at 4:21pm

Surprising that with as many complaints I have seen on deadline dates for lease payments that this topic wasn't jumped on.

Permalink Reply by Brad Walburn on April 26, 2012 at 12:17pm

What county did Shell pull this in?

Permalink Reply by Kathleen on April 26, 2012 at 12:37pm
Guernsey co. Shame on Shell! I think the landowners should call every paper and news station to report this large corporate bully. How dare them record a lease on the landowners deeds and NOT pay. I would be on my roof top screaming for all to hear. Okay I'd have to pick somewhere else since its just me and the wild turkey's.
I would also file a report with the attorney general reporting the illegal recording of a lease on my deed. I bet that would help get it removed. I have always noticed that office does respond.
I personnelly would have felt good signing with Shell since they are so well known and I thought a respected company.
I was very worried waiting on my check from CHK thinking I could wait 120's and no money would show. The only good during that wait was they were forbidden to record a lease until I was paid. shame on Shell.
Permalink Reply by Lance Nimmo on April 26, 2012 at 1:48pm

Not that it makes it right, but what was their rationale? 

Permalink Reply by ANONOMOUS! CUZ I CAN BE! on April 26, 2012 at 2:07pm

Rationale I've heard from Holland, the land owner group for shell, was the abundance of leases that needed to be processed.  Ive receieved only one phone call during this entire process letting me know the status of my lease.  ONE.  The rest of the contact has been on my part.  I understand that there is alot of leases and land to search, and the capability of our recorders office is rather limited but with all the abstractors that shell had researching titles and deeds, etc. We would all think that Shell and Holland Title has had their fair amount of time to pay folks.  It seems like all we hear is rumors from this person and that person.  None of those are factual information that has been received from Holland or Shell.  If it was factual, we would have all been paid what we are all owed by now.

Permalink Reply by Dan Warfield on April 26, 2012 at 2:18pm

Its getting harder and harder to sell the investment to the oversea's market, hence the delay's today.  There are too many different investment options around the world in the energy sector and not enough to go around in the U.S.A.

$2.15 NG is tough to make a return on for any company.

The Shell's of the world are no different than the XTO's, the Chesapeake's or the Hess's... they ALL need joint venture money and its slow to trickle in right now... the ponzi scheme is rearing its ugly head once again.

 

Only my opinion...

Gooood Day...

 

Permalink Reply by ANONOMOUS! CUZ I CAN BE! on April 26, 2012 at 2:23pm

If I recall....people goto prison for a ponzi scheme...we've all heard of Bernie Madoff, billions upon billions of dollars.  And hes gonna be there awhile to think about that.. All of these companies need some accountablity for the misleading information they publish to their "customers" per se .  Its OUR land we are leasing to them in good faith....

Permalink Reply by Shocked at SHELL on April 30, 2012 at 4:22pm

Very well spoken! DAN. Other's of you unfortunately you signed a contract that allows them to do what ever they want to do.

Permalink Reply by Lance Nimmo on May 1, 2012 at 2:55am

It's a damn shame that every little detail, LIKE GETTING PAID has to be explicitly spelled out. I really hope the state comes after practices like this...

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