Where's all the people that advised everyone the moneys in the royalties not the bounus?
Is there any chance there will be a turn around and the land owners will actually get what they were promised? Riches in the royalties. I remember it well. Back yard lawyers. "Don't give the lawyer any percentage give them $per acre" Well at the last minute I had a choice and went with giving the lawyer %1 of the royalties. He hasn't got nothing yet and, the $350 per acre is in my pocket. Well it was till I spent it all down to the level I was at before I was rich. (I wrote about that before how hard it is for anyone to hold onto a wind fall) At the present after 3 yrs I think it was the right choice and, when the gas co. starts cheating me my lawyer has an interest with me and many others in our group to try to fight for us. That 1% of a group will line his pockets pretty good.
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Replies to This Discussion
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Permalink Reply by G.H. on
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Depends on where you're located. Easy enough to figure out at this point. Lots of info on here.
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Permalink Reply by Daryl Brown on -
Finally a man with some sense. The guys telling you the money was in the royalties were the same guys working at the O&G companies who were forecasting oil at $100/bbl and NG at $5/mcf into perpetuity. If you happened to have good rock under you and commodity prices were indeed as they forecast you would be in tall cotton and no discussion would be taking place. It's called sour grapes. Not everything pans out like you want it. Btw those O&G companies are taking it in the shorts right alongside you so don't feel lonely. They spent $10 million to drill the well and are getting 80 cents for the gas and $20 for the oil....... OUCH
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Permalink Reply by Booger on
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Tyler - you must be one of those corrupt landmen........glad I offended you.
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Permalink Reply by Barb Smith on
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The money is in the royalty especially if you are already very wealthy and have a large amount of acreage otherwise maybe they take 2 of your 50 acres and unitize it to tie you up, then if the unit is a 1280 you get the big sub $100.00 check for your royalty. In this industry the rich get richer money follows money dont forget that when you are anxiuosly waiitng on that big huge royalty chek the landman told you about.
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Permalink Reply by Joe on
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That maybe one of the many ways. The biggest seems to be just outright steal it from you and get away with it.
I believe in the beginning They payed like they were suppose to so the word got around. That way it was easier to get people to sign. Then the price went down and supply is up, they choke back the wells, some to HBP. I believe even if they could have sold it as fast as they could produce it they still would have started cheating and stealing once the had less motivation to sign new acreage.
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Permalink Reply by bo boboski on
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Barb; you hit the nail on the head.
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Permalink Reply by Bernie Horabik on
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If demand increases, or if the current price of natural gas rebounds, creating another round of leasing, I'm going to jump at the first offer of $2500 per acre. like I did in 2008 without any regrets!
I didn't have a crystal ball in 2008 and it ultimately went to $6000 per acre, but I still don't have any regrets!
The royalty issue is mainly a result of low natural gas prices and the negative differentials.
Even with the lows natural gas prices and the negative differentials. I'm still jumping at the first offer of $2500 an acre to lease again.
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Permalink Reply by G.H. on
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Yes, this seems mostly right. If you have large acreage then you stand to profit the most from royalties, certainly. You also probably got a huge signing bonus. Your location and the productivity of wells in your area also greatly influence royalties, obviously. And you can definitely get screwed by having only a few acres of your property put in a unit. It's all a gamble with so much left to luck and chance, but in the right circumstances royalties will pay you more than the signing bonus.
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Permalink Reply by Joe on
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What does the size of the acreage have to do with comparing signing bonus to royalties? If you have one acre or 300 you get paid by multiplying the bonus per acre times the number of acres one time unless you renew and get a second bonus which would even make it more likely the bonus will be more than royalties at the present way their stealing, ahem paying.The royalties are paid by the amount that comes out of the well head regardless of how many acres you have minus what ever they steal, ahem take deductions for and as said they might not have all your acres in the production unit bringing the amount lower still. Aaaannnnddd on top of that at the present they are choking back wells because of glut/supply and demand.in the right circumstances is not that easy to come by as long as they steal, and supply and demand doesn't change. Unless it might be a municipality being bribed with high payments for favoritism on zoning issues.OK, so lets talk about the present. Who is getting or even thinks the way their deal is going that their royalties will be more than the signing bonus anytime soon?
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Permalink Reply by Joe on
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What does being very wealthy or a large amount of acreage have to do with how much the royalties are going to be compared to the signing bonus?What does being very wealthy and large acreage have to do with whether they take 2 or 50 acres?To put the question another way: Who thinks their royalties will exceed their signing bonus PER ACRE anytime soon for the acres they have signed?
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