Was contacted about signing a lease with Blue Roan Resources, LLC in Morgantown WV. I tried to find some info on them...but nothing comes up. What would you advise when you don't know who your dealing with?
For what it is worth, Blue Roan is not listed in any facet with the WV DEP. I would be concerned if I were in your shoes.
Tennis. thanks for the information.
I did ask the landsman who he worked for and Blue Roan was his answer...it looks like they are mostly a title company or something similar. What happens to a lease that is signed in this situation? This seems odd to me.
I have another name that I found that is connected here...and wonder if people know how they play into the leasing business. American Petroleum Partners. I see that they lease to mineral owners. I don't see any permits for drilling, so I don't think they do that.
I am very confused about how these small new companies deal with the leases? Who ultimately does the drilling and would a signed lease with them just set around for years until a bigger company is interested?
Landmen will frequently negotiate and lease on behalf of an oil company that does not want to reveal its plans. The landman will lease in land company name and then later assign to the oil company. Some oil companies will use multiple landmen to further mask their strategies. In hot areas, small companies will lease to either flip to an oil company or to participate as a small working interest in the well. As a minerally owner, you need to focus on best deal possible - highest royalty rate, lease bonus per acre and the written terms of the lease. It does not benefit you to take bad lease terms from anyone. So find out what is going on in your area within the county. Who is leasing on what terms and are there permits or well nearby, etc. Take your time to get the best deal possible. Do not let anyone pressure you to act too fast.
If the landman is flipping leases you won't get the best deal possible as far as the money goes. The landman will make money on the difference between what he can get you to sign at and what he can sell it to a development company for. If the landman is working for a development company under a different company name you'll be able to get more money because the landman is being paid a day rate, not a commission or by the difference between buying and selling price. There are other companies working in the area. It's worth it to shop the lease around a bit. I'm going to assume Marshall, because we have a lease we're looking at negotiating in Marshall for a client with Blue Roan, and WV Mineral Owner found their name on the Marshall web site. If so, Antero, EQT, and Tug Hill are all working up there, along with some others. It's worth it to reach out to them. Let me know if you prefer some help to doing it yourself--negotiating West Virginia leases is what my law firm does. I'll help out all I can on here regardless.