Western Land Services---Jim/kathy Ivory(landmen)

Greetings everyone, again.

Been awhile since posting and visiting here. You all have been INVALUABLE.

Dad has acreage in T34- R 52, T34 - R 53 and T34- R 54(various parcels)

He's been approached by WESTERN LAND SERVICES Jim/Kathy Ivory.(seem ok)

Any one had any dealings with them or Western ??

They have offered $300.00 per acre for five years and a 15% override.

I've preferred 3/16 for override. Have not leased below $500.00 per acre recently and HAVE NOT leased our acreage on this western side of the county yet. Are the rates lower there.??

Your help, as usual, is always appreciated, as my 88 year old father and I need help here.

thanks so much.

Dave

Dave:

Like you, I've never heard of Western Land Services but they are just another lease broker in the area either leasing for themselves or representing an oil company. Don't take first offers, shop around and learn what's going on in this area, lease wise. I have minerals in T31;R59 area but I leased back in 2009. I would say the $300 is on the low side but the area around T34 has not been an extemely active area thus far. Saying that, I would ask for a mnimum of $500/acre but I would insist on a 20% royalty as this will follow you long after you are HBP if a well is drilled. Don't put your main emphasis on the bonus amount if they are willing to up the % royalty. This is the way I do business in negotiations but in conclusion, shop around and don't settle for a first offer. Also, don't lease for any longer than 3 years.

Good Advice, as usual Charles,

they started with $300 an acre for 5 years and 12% royalty.

They are now at 1/6 and $300 for 3 years.

They are looking at 35 acres( various small pieces) in four different sections.

Glad they have started to negotiate.

Still, have not gotten any feedback for any others who have signed up with WESTERN LAND SERVICES.

I know when I contact them on Mon/Tues I'll be having them write separate leases and insert a Pugh clause if and when we agree.

Kind Regards,

dave R.

Dave,

I am currently involved with a lawsuit against Western Land Services. They are an established landman company out of Michigan with locations in many states. Here is there website: http://www.westernls.com/

My involvement with them was in Michigan. I signed, along with many landowners, in Michigan in the summer of 2010. Ultimately hundreds of leases were canceled; these are signed leases. Many landowners have taken them to court and their cohorts. As it turned out their principal cohort was Chesapeake Energy who had been anonymously behind a mass leasing action in Michigan in 2010.

Now I will emphasize that Western was just following orders from their client. They were instructed to lease all they could, but when Chesapeake decided they wanted out then they had the leases canceled en masse. They were canceled for bogus reasons, such as; a mortgage, delinquent property tax, land in area they are not interested, signed too late, use wrong forms, signed in wrong spot. etc. What Chesapeake did was; form a shell company in Delaware, which formed a shell company in Michigan, which hired a reputable local landman company who in turn hired Western Land Services to do leasing. Leasing was also done by Oil Niagaran and Silver Lake/Redsky.

Western is a decent company with a long history. But landman companies are puppets and have to act on behalf of their client. So they are only as good as that client. When I dealt with them they were very professional, knowledgeable. I was part of a large land group who had a two day mass signing and they even catered in food and drinks. The mood was festive. However, ultimately I/we had leased with Western and they did not pay the signing bonuses as promised and then canceled the leases (well a CHK shell did the cancellations on Western's behalf).

So here is what I would do. I would make them reveal their client. I would also ask them about what happened in MI and watch their reaction and see how they respond. Western is leasing for someone, they are not producers and don't have the financial strength to lease for themselves or drill on their own. So they have a client. You must determine who. Once you know who then research that company to be sure you are comfortable with them.

The big thing is not to provide the signed lease to them until you are paid and have "cash in hand" (cleared the bank). Only accept a WLS company check or a cashiers check. Do not accept Sight Draft, Bank Draft, Letter of Intent, Offer For Payment (OFP) or any other similar agreement that specifies some period of time (30 to 120 business days). Simply tell them that due to their actions in MI you require immediate payment at time of lease signing. Tell them that you'll hold (via your attorney as escrow) the signed leased until the check has cleared in your bank.

Finally, be sure to work with an attorney experienced in gas/oil leasing.

Good luck.

Wilson

Our Baker Mineral trust leased our 35 net acres T33, R52 to Baseline Minerals the middle man for Samson for $550/acre and 3/16% back in January 2012. They were easy to deal with and we were paid in a reasonable period of time.

My brothers and I also leased our mineral rights via Baseline Minerals Inc. The experience went well. Now just waiting to see if anyone actually drills on the land in Sheridan County.

My Family has 34-35 -57 Mineral rights in Sheridan County, my Grandparents old farm. It was leased last year for 3 years, 400 Acre bonus, 3/16 for any production, with an option to sign an extention to the lease after 3 years.

I would not take less myself.

I believe ac tivity is coming to our area.

Thanks,

Jerry

Jerry:

We have minerals in T31N;R59E;Section 31 and Marathon Oil holds the lease. According to their company representative whom I spoke with recently, they intend to drill in my area in August. The well is currently on the drilling schedule and just yesterday, I recieved a letter from Marathon in regards to this scheduled drill. You are correct in that this Sheridan County area is becoming more active as development move to the West from ND. Marathon is currently developing a large amount of acreage under their "Diomedes Project".