signing lease

Maybe someone out there can help me. I am not leased and have not signed up with any lawyers but have gone to a couple meeting.  One of the lawyer goups just called and said they have a contract with Halcon and want me to sign a contract.  I would get 3150 an acre and 18%.    However the lawyers want 150 per acre and 1.5% of the roylaties for 5 years.  The 1.5% would translate to 8.33% of my royalties.   But they said that need to do it by monday.  I hate to rush into something but what if i wait and nothing happens.  I hate to give up some of may royalties.  But i would hate to end up with 18% of nothing.

 

What do you think?

Lorri

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Replies to This Discussion

Permalink Reply by James Brink, Esq. on February 11, 2013 at 8:02am

Keith:  Have you received payment on your lease you signed last May?

 

Permalink Reply by Keith on February 12, 2013 at 5:08pm

No I was in the group that no payments were received.

Permalink Reply by RichR on May 21, 2012 at 6:18am

Nick,

Your comments should be printed out, framed, and hung on everybody's wall.  And I agree that lawyers should be compensated a fair amount for providing his/her clients a quality lease proposal.  It could be worth a whole lot more in returns in the future.  People need to be made aware that they need to look at the lease they may be signing before they look at the money that is being offered.  The bonus money is a one time deal, the lease can last a lifetime.

Permalink Reply by Mark Thompson on May 21, 2012 at 10:47am

Nick

You  are paying your own law firm $150 an acre??  That is a riot!!!  Are you paying your law firm a percentge of royalty also?????   Are you really trying to convince some farmers and hardworking people that it is ok to give your attorney group a signing bonus and royalty bonus because YOU ARE PAYING YOUR OWN FIRM???????   THIS SAYS A LOT

 

Permalink Reply by Nick Cirell on May 21, 2012 at 10:56am

Mark,

You did not read my post very clearly - which many people do with their leases.

I am an attorney and I have hired a law firm that has special expertise in the energy and leasing industry. The law firm that I have engaged is not my firm.

 

 

Permalink Reply by Mark Thompson on May 21, 2012 at 11:04am

Nick

Your post read "I will pay my lawfirm"  I read this that this was "your lawfirm" since you are an attorney and you called it "your lawfirm"  I assumed it was yours........

Permalink Reply by Mark Thompson on May 21, 2012 at 12:51pm

I would be willing to bet that the people on here speaking on behalf of a law firm that takes bonus money and a royalty percent from the landowner have something to be gained others following suit.  It is a good idea to have an attorney review any lease prior to signing, this is NOT THE SAME AS HAVING AN ATTORNEY GROUP THAT CHARGES YOU A PERCENT OF YOUR BONUS MONEY AND ROYALTY.  They are trying to confuse the two. Don't be fooled. 

Permalink Reply by Mark Thompson on May 21, 2012 at 12:56pm

Another sign that something is not right is "they need to know by Monday"  High Pressure sales???   Are the gas and oil reserves going somewhere by Monday????  Buy the car now or you won't get this price.......

Permalink Reply by Mark Thompson on May 23, 2012 at 11:51pm

Silence speaks volumes.  When challenged nothing to say..... 

Permalink Reply by Lorrene Wagner on May 24, 2012 at 11:46am

Since I started this thread I wanted to say thanks to everyone for their advice.  I have decided not to enter into a contact right now with anyone.  I think I will wait to see want a hard winter, rise in gas prices, and a new President might bring. 

 I do want to let people know what I found out.  Adapt energy had offered the lawyer group (Marcellus Law Group) leases for $3150 and acre at 18% of cource the lawyers wanted and 150 and 1.5% of the royalties forever.  The lawyer group states the 1.5% is to audit the oil companies books every year.  I think this is an okay deal for people that are desparete for money now.   Times are tough, so I make no judgements on the people who took this deal.  

What is funny is we I called Troy Allison from adapt energy (ad has been in the paper) he only offered be $2650 an acre at 16%.  You would think the offer directly from Adept would be the same or higher.  Of course I turned this offer down. 

Right now the problem is there is only one company looking at our area. A joint venture with Adapt and Halcon. 

Well thanks to all

lorri

Permalink Reply by Lorrene Wagner on May 24, 2012 at 11:47am

P.S.

Sorry for the bad grammer above.

Lorri

Permalink Reply by Jim Litwinowicz on May 25, 2012 at 3:42am

There is more than one company looking at Venango Co.  We (M & P Law) are talking to several and should get a better offer....and we are not taking any of the royalty.

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