We have an offer in Clay district for 1500 an acre and 15%. Trying to get lease language to our liking. I have a question: The land agent got one of the heirs to sign their lease. (ouch) Does anyone on here know if there is any time limit for the heir to change there mind and cancel out the signing. We want to sign as a family but, the agent contacted the weak link after we told the heir that we are still negotiating. Also where does that leave the other 10 heirs as far as trying to move forward on getting a lease for us.
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It seems as if landsmen always find the weak link. In our case it was a head strong cousin. He signed a lease without even talking to the rest of the family. Then the landsman made a very rude remark about another of our cousins. The rest of us refused to do business that guy and his company. We waited three years for that lease to expire.
Sometimes money isn't everything.
I agree totally with Mr. Gill.
You should definitely negotiate for a higher royalty (ask for 25%) and have a lease that is very different from the lease signed by the "weak link relative." Power comes in numbers, so staying and working together as a unit is very important, but of course that doesn't always happen. Unless the weak link relative owns a majority % of the minerals, which doesn't sound like the case here, you can refuse to sign or negotiate a very different lease, far more favorable lease for yourself and the remaining family members. No doubt oil and gas companies want all family members to sign the same lease, but you DO NOT HAVE TO. Please keep us posted, this scenario is something that happens all the time, and I am hoping you have a good outcome.
Well the land agents struck again and used lies that everyone else was in agreement with the O&G standard bad lease. What is wrong with people that would sign a document giving some Co. free roam to their mineral property without even checking with the rest of the family back here. The out of state relatives seem to care the least because they don't have any reason to return here. They only see dollar signs and give up important rights and are held liable for defending the ownership of title when they sign a bad lease. These land agents want your signature and then they get the facts on ownership later. Signing "their' lease with language saying you warrant the title puts you in a position for them to come back on you, if something is not right with ownership. I have put hours and days and weeks researching our rights and trying to get a good lease together for all our heirs. The only compensation i was hoping to get was a good lease for all. What i did get from some heirs was a kick in the teeth. Wake up folks.
I sympathize with you. There is no telling how many people have bought into the "everyone else has already signed" ploy.
There are probably many people who have such stories, and there would probably be many more who did if they ever actually looked into the situation, afterward. People do wake up, but after the damage is done. Thanks for sharing. You never know, this could save someone alot of heartache down the road.
DT said:
Well the land agents struck again and used lies that everyone else was in agreement with the O&G standard bad lease. What is wrong with people that would sign a document giving some Co. free roam to their mineral property without even checking with the rest of the family back here. The out of state relatives seem to care the least because they don't have any reason to return here. They only see dollar signs and give up important rights and are held liable for defending the ownership of title when they sign a bad lease. These land agents want your signature and then they get the facts on ownership later. Signing "their' lease with language saying you warrant the title puts you in a position for them to come back on you, if something is not right with ownership. I have put hours and days and weeks researching our rights and trying to get a good lease together for all our heirs. The only compensation i was hoping to get was a good lease for all. What i did get from some heirs was a kick in the teeth. Wake up folks.
I'm curious what happened with this. Update?
Wow that was long time ago. Lol I have partially retired from dealing with these crooks in oil/gas since then. The rest of us had a partition suit filed for lack of negotiating and asking for unreasonable terms. In short the company made it look like it was us who were holding them up. They can do lot's of things by law to get you in an unfavorable position. Did I mention crooks.. Well they are all that too.
Thank you for letting me know. Do you mind telling me who the crooks.. erm, I mean oil company, was? I'm dealing with Antero, and I'm curious, they can be very evasive I'm noticing. Thanks!
We know Antero like they are family.... You think you are dealing with them but, they act like they own your minerals. If you don't do like they want, they will buy an acre off of one of your heirs and then they are an owner. They will try the partition route to try to get your mineral interest if you don't sign. I can tell you so much but, my fingers would bleed from punching keys. They will only give you so much and very little in choices. You should do tons of research and get good language if you have any leverage at all. Sounds pretty depressing but, they are in this to make big money and will go to any length to get what they want. If they do talk about partition then, you must be in their plans. How much interest do you have and where?
Before you sign any lease, look into the financial status of the company. Some oil companies that I thought were pretty sound have gone bankrupt. Your lease could end up in the hands of someone you would rather not do business with.
This is sharing the loss. When management of a company feels bankruptcy is coming, they bring all sorts of stuff into inventory. That increases the assets of the company and the supplier becomes just another claim. Thus, the loss is shared by the unsuspecting supplier. Don't be a victim.
Interesting reading: http://www.thestreet.com/story/13335002/1/antero-resources-ar-stock-price-target-lowered-at-jefferies.html?puc=bloomberg&cm_ven=BLOOMBERG
From Macroaxis.com: Based on latest financial disclosure Antero Resources Corporation has Probability Of Bankruptcy of 46.1%. This is 5.67% lower than that of the Basic Materials sector, and 17.18% lower than that of Oil and Gas Drilling and Exploration industry, The Probability Of Bankruptcy for all stocks is 6.94% lower than the firm.
There are many companies that could belly up do to the lower gas prices. This is not the first time this trend has happened. They will just cut back on certain things and wait it out. If they do belly up, then I would say the whole country will be in 2008 mode again.
That is entirely possible. This shake out of the industry is not over yet. Right now, the best place for your minerals is in the ground.
I see the Chinese are buying distressed operations. How this turns out is yet to be determined.
From what I can tell the companies are applying for several drilling permits. They seem to be getting those areas ready and not have to wait till things open back up. As far as drilling them that would be anyone's guess. I think they are concentrating on the hot areas even though they have several others tied up. It is all about the wait and maybe in that time they can get a pipeline going to get it out. Sounds like a plan. Lol