"The "gun" is the naive, yet typical, mineral owner that is taken advantage of by the gasco and leasing process."
And the mineral owner holds the gun himself so he can commit suicide.
You can have people sharing information, but what you really need is Intelligence Analysis.
Hahaha ... Do you ever sleep? I've attempt to make heads or tails out of your above post, but all I can do is laugh ...
Susan,
I agree with you except for the "only".
--"however, I recall the leasing fever I went through & the environment was rushed , exciting & we trusted what we were told & never thought we were getting taken advantage of. Now I know differently about the leasing game."
Wison
When I said "only" - I meant when it comes to oil and gas leases with the uninformed person in mind like a lot of us were when the oil boom started in Montague County. But I know that the word "only" was probably too broad.
Buddy is a professional that is not surpassed by anyone that I have seen in either his knowledge or his willingness to share that knowledge free of charge. I have received a better education on certain tenants of oil and gas laws and process from what he has shared on this forum than I did in school.
You won't find anyone on any oil and gas forum that has shared more CORRECT information more freely than Mr. Cotten.
Several times, he has corrected my posts on this forum when they weren't 100% correct, and I am grateful for it.
It is helpful to everyone involved to establish a clear discourse on terms offered by oil companies. However, each mans business is his own, it is absolutely rude to criticize someone who wishes to keep their business private, it is after all, their business and no one else’s. If they are harmed by their decision not to seek counsel, that is their concern alone until they ask for help.
Land Ma'am
Myranda - I AGREE!
What do you call it when the oil company pays you $450 per acre for the lease & then comes up with a dry hole?
Dillon, I am not getting your point, could you expand on this so I can see what you are getting at ? Are you asking what do you call it when the lease agent has been sending you unsolicited lease offers and calling you at home and work for two years before you finally relent and lease your minerals to the operator for $450 an acre and they drill a dry hole ?
Okay, say you have 200 acres & the oil company foolishly pays you a $450 per acre bonus($90,000.00) & drills a dry hole -- would you call the $90,000.00 chicken feed?
$90K = Small compared to the other 3 Mil they spent drilling the dry hole.
You're right -- I dont consider either the $90k or $3m to be chicken feed.
I think we can all agree that if you have no oil or gas that the smart move is to lease for whatever they will pay. What if you are like me and always knew there was oil in your mineral acres and it HAS been proven by the drillbit under 10 wells ? What if you are in Wyoming and they offer $7.50 and 1/8 and you pay your portion of the trucking of the oil ? Chicken feed could be relative to the situation.
I would think any oil company out there is trying to see what their competitor is paying for bonuses and believe me they're talking trying to find out as much as they can ...
There's nothings rude about it - its business!!!
You have a point, but even so --sometimrs the oil company is very positive about a location only to have a dry hole, or at least one that never pays them back the money invested, and then sometimes a location far exceeds expectations --it's somewhat like a box of chocolates
Might also add that the oil price has ranged from $35 to $145 per barrel over the past 5 yrs & at $145 a well that's a real money-maker might be a real loser at $35 & no one knows for sure at the time a lease is signed what the future will bring
Dillon said:
You have a point, but even so --sometimrs the oil company is very positive about a location only to have a dry hole, or at least one that never pays them back the money invested, and then sometimes a location far exceeds expectations --it's somewhat like a box of chocolates
Dillon said:
There may be more impt things on the lease contract then the amt someone has been paid to sign the lease contract.
There may be more impt things on the lease contract then the amt someone has been paid to sign the lease contract.
Like what?!
Dear Ms. Holmes,
Depending on the state -- limitations on pooling, surface ownership issues (if that applies to you), drilling obligation, continuous drilling program, pugh clause, depth limitation, split horizon leasing, refund of overpaid severance taxes, escalating royalty after 2x payout, strong environmental provisions, strong hold harmeless (to the point that you can hire your own lawyer and they pay for it), cancellation of lease on failure to timely pay royalty (even during the initial term of a paid up lease), payment of royalties on suit settlements and take or pay provisions on gas sales contracts, and the list goes on and on.
It's not all about the Benjamen's up front.
I will also add that at least 6 of my wells have experienced the $35 oil and some, the $140 oil. I also like to note that I never asked an operator to drill my acres, the operator is not my brother in law, I have no stake in their profitability.
Dillon said:
Might also add that the oil price has ranged from $35 to $145 per barrel over the past 5 yrs & at $145 a well that's a real money-maker might be a real loser at $35 & no one knows for sure at the time a lease is signed what the future will bring
Dillon said:
You have a point, but even so --sometimrs the oil company is very positive about a location only to have a dry hole, or at least one that never pays them back the money invested, and then sometimes a location far exceeds expectations --it's somewhat like a box of chocolates