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

Views: 7427

Replies to This Discussion

Permalink Reply by Martha Stevens on May 26, 2012 at 6:09am
I don't understand how 1.5% translates to 8.33%. According to MSlg it is halcon that put the the time limit on the offer and that is because they want to drill before this winter.
Permalink Reply by rex roae on May 26, 2012 at 6:23am

8.33% represents the amount she'll loose after the 1.5% is deducted from her 18%.  In other words she ends up with 16.5% or 8.33% less than she would have gotten with no deductions off her original  royalty of 18%.

Permalink Reply by Martha Stevens on May 26, 2012 at 10:06am
Ah. Gotcha. Thank you
Permalink Reply by Jim Litwinowicz on June 9, 2012 at 1:52am

M & P has a meeting scheduled for Tuesday, June 12th at the Franklin Quality Inn at 7 PM for anyone that wants to know more about leasing and/or joining our group.

Permalink Reply by M.A.B. on June 14, 2012 at 3:41am

Jim,

were any offers made tuesday to landowners or was the meeting still for info/sign-ups

Permalink Reply by Jim Litwinowicz on June 21, 2012 at 6:44am

Yes we have an offer for our members. But I cannot post details here. I will say that we do not take any fraction of any of the landowner's royalties. We will schedule another meeting soon.

Permalink Reply by william wible on June 20, 2012 at 4:42pm

I am new to all this myself. But would like to know how things have turned out? It is a month since you requested advise. Have you signed a lease and with who? I have some land in Venango county but live out of state.I dont have a good source of info. what you was offered sounds great to me. i would be happy to get that offer if there are companys paying that. If anyone has some advise for me. I would love to here it.                                               BILL

Permalink Reply by robert vepich on June 22, 2012 at 10:49am

why would anyone sign with M&P or CX or whoever they are today and have them take 6 - 8% of your sign on bonus when you can deal directly with a drilling company?

i heard they are taking over 8 million dollars from the group they represented from Mercer when someone in the group ran the numbers?

I talked to Adapt and they said they are not looking to deal with any more attorney groups here, that they deal directly with landowners preferably and are here to invest money into the community not dish out millions to "Attorneys" who round up as much as they can to make money, not get people drilled.

Permalink Reply by william wible on June 22, 2012 at 11:50am

Who is Adapt and how do you reach them?

Permalink Reply by Jason Bablak on June 22, 2012 at 2:08pm

Contact information for Adapt:

C.J. Tibbs
Adapt Energy, Inc.
2633 McKinney Ave., Ste. 130
P.O. Box 421
Dallas TX 75204
Office: (724)-990-0012
Fax: (214)-853-4170
www.adapt-energy.com
CJ@adapt-energy.com

Permalink Reply by william wible on June 22, 2012 at 4:00pm

thanks, i ll try to make contact 1st of the week.

Permalink Reply by Hill Top on June 25, 2012 at 11:42pm

Tibbs told me two weeks ago that he was not leasing any more land in Richland Twp, Venango county at least for now.

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