Replies to This Discussion

Permalink Reply by 09bp5t05myjl3 on May 9, 2012 at 3:08pm

I wouldn't believe a word any landman tells you, They are notorious for lying & twisting the truth to get you sign their lease for as little as possible, That makes no sense & I havent heard anything like that!

 

Permalink Reply by Frank on May 9, 2012 at 3:36pm

Ditto Tom,

This guy's trying to low ball you. What outfit is he with? The EPA just passed new fracking rules, but they are not that restrictive and apply only to fed lands. The politicos in Ashtabula know better than to mess around with a boom..lest they be out on their ears.

Permalink Reply by Joseph-Ohio on May 9, 2012 at 3:50pm

Make that a double ditto.

Permalink Reply by Luckyfinn on May 9, 2012 at 4:07pm

Pretty much what I figured.  When you hear such things as "a bird in the hand..." you get suspicious.  I spent 28 years negotiating construction contracts so I know most of the game.   What was puzzling was the lack of media coverage over such a major event or discussion in this forum.  Also, when asked why the State would pass a law that only applied to this area I got a rather nebulous answer.  That is why we are sitting back an waiting to see what can be organized to help us all.  The company: let's just say it is one frequently mentioned in this forum.  Thanks or the input.  I hope we can work together in the future to all our benefit.

Permalink Reply by Craig Stull on May 10, 2012 at 6:48am

WISHGARD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Permalink Reply by Brad on May 10, 2012 at 7:28pm

Come to your own conclusion based on this:

http://ohiodnr.com/home_page/NewsReleases/tabid/18276/EntryId/326/N...

Permalink Reply by Joseph-Ohio on May 10, 2012 at 11:13pm

To me, new regs. to protect private water sources shouldn't be a reason to drastically cut incentives to lease lands for resource recovery - but, you can see by Luckyfinn's experience that the landman tried to use it to leverage making a deal in favor of his company and at the expense of the landowner. 

The fact that the landman is using leverage to the detriment of the landowner doesn't even surprise me.  That's what they do.  Then when he 'flips' the lease to another he keeps more of the difference between what his company pays the landowner and what the next buyer of the lease pays his company.  Personally I didn't need to hear Luckyfinn's report to realize that any landman works in his own best interest 1st using as much leverage as he can find and always at the expense of the landowner. 

Also, most landowner friendly lease agreements that I'm seeing these days include language to protect the private water supplies.  That $3,900.00 per acre 5 yr lease in Trumbull did.  It's just that now there will be more protections by State Law.  Who pays for it should work out to be how it's always been - the consumer. 

Landowners have to protect themselves from the low ball offers as best they're able by signing up with the outfit that gives them the best deal.  In most cases that probably means forming a not for profit landowner group that would work directly with developers.  It seems however, that's not how it works out most of the time as I'm seeing landowner groups ending up working with another middleman - a landowner company who will work with the developers.  Ideally each landowner would work directly with a developer and cut out as many middle men as he could.  Most of the time the developers have land company subsidiaries that make their deals, then drilling companies that install the wells.  More middle men than you can shake a stick at.  All of them will use as much leverage as they can.  Landowners should use as much leverage as they can as well. 

The next thing that happens is the price consumers pay for natural gas, heating oil, diesel, gasoline, and petroleum based products will all rise.  Especially considering that the big dogs will be selling a big chunk of our recovered natural resources to the overseas markets who pay the most.

Be as independent as you can - stay alert - they're all out to get us.

   

Permalink Reply by Joseph-Ohio on May 11, 2012 at 12:14pm

Could Not Delete So Find My 1st Comment (Directly Above) Revised For Clarity As Follows:

To me, new regs. to protect private water sources shouldn't be a reason to drastically cut incentives to lease lands for resource recovery - but, you can see by Luckyfinn's experience that the landman tried to use it to leverage making a deal in favor of his company and at the expense of the landowner.

The fact that the landman is using leverage to the detriment of the landowner doesn't even surprise me. That's what they do. Then when he 'flips' the lease to another he keeps more of the difference between what his company pays the landowner and what the next buyer of the lease pays his company. Personally I didn't need to hear Luckyfinn's report to realize that any landman works in his own best interest 1st using as much leverage as he can find and always at the expense of the landowner.

Also, most landowner friendly lease agreements that I'm seeing these days include language to protect the private water supplies. That $3,900.00 per acre 5 yr lease in Trumbull did. It's just that now there will be more protections by State Law. Who pays for it should work out to be how it's always been - the consumer.

Landowners have to protect themselves from the low ball offers as best they're able by signing up with the outfit that gives them the best deal. In most cases that probably means forming a not for profit landowner group that would work directly with developers. It seems however, that's not how it works out most of the time as I'm seeing landowner groups ending up working with another (a 2nd) middleman - a land manager company who will negotiate with the developers on behalf of the landowner group. Ideally each landowner would work directly with a developer and cut out as many middle men as he could. Most of the time the developers have land company subsidiaries that make their deals, then drilling companies that install the wells. More middle men than you can shake a stick at. All of them will use as much leverage as they can. Landowners should use as much leverage as they can as well.

The next thing that happens is the price consumers pay for natural gas, heating oil, diesel, gasoline, and petroleum based products will all rise. Especially considering that the big dogs will be selling a big chunk of our recovered natural resources to the overseas markets who pay the most.

Be as independent as you can - stay alert - they're all out to get us.