Why would a company want to remain anonymous?

Mrs Lacy I leased 30 yrs ago They told me that the oil was like a OCEAN They were 20 miles away drilling and I am so Peeved EXCUSE spelling I am just ticked how much Greed is Enough? Gordon Geko Wall Street 1987 God Bless The wOMAN AND MEN WHO Serve as I did Hang In There Crazy Phil

Lacy, they do exactly that. They lease acres that will be incorporated in a well that someone else drills and pay those acres proportionate share of the costs of the well, become a minority partner in the well. It’s good business I think because if you spread ten million dollars over several wells in widely spread areas, you probably won’t get wiped out, as you could be if you drilled one well yourself.

Lacy said:


I'm beginning to think that some of these companies see this as a game. To see who can go in and steal a possible lease from another company. A friend of mine talk to a landman the other day about my situation and he seem to get really excited about it. He said he was interested in learning more and possiblely offer more on the signing bonus. He also told her that this is common practice for the company to want to remain anonymous. I just wish I had a way of finding out what the rates are going for in Midland County right now.


Hi Lacy and to all can anybody tell me why the EAGLEFORD Play The Giddens Field,Woodbine Bossier I know more Ameruso Field named after the Geologist Seem to circumvent Leon County I seen map of EAGLE FORD 200 TO 400 MILES LONG all the way from Matagorda to LEON BY THE WAY 40 TO 50 MILES WIDE just google Eagleford u WILL FIND IPromise excuse bad spelling must tally ho to work Phil
r w kennedy said:

Lacy, they do exactly that. They lease acres that will be incorporated in a well that someone else drills and pay those acres proportionate share of the costs of the well, become a minority partner in the well. It's good business I think because if you spread ten million dollars over several wells in widely spread areas, you probably won't get wiped out, as you could be if you drilled one well yourself.

Lacy said:

I'm beginning to think that some of these companies see this as a game. To see who can go in and steal a possible lease from another company. A friend of mine talk to a landman the other day about my situation and he seem to get really excited about it. He said he was interested in learning more and possiblely offer more on the signing bonus. He also told her that this is common practice for the company to want to remain anonymous. I just wish I had a way of finding out what the rates are going for in Midland County right now.

A little to much to drink there Phil?..lol

Philip Hollman said:

Hi Miss Lacy I am glad to talk to you duh e mail, I think all of us Who leased land should be

Glad to help the Oil companys No Kidding I think if we all chip in ann Buy Dixie straws we could tape them together and get the secret oil out I said that thirty yr,s ago to Land person who TOLD ME THE MIDDLE EAST was DUH looking into EXCUSE spelling to many BEERS i ENJOY TALKING TO U ALL Please respond Good Ole Boy Phil who,s daddy from Texas Yahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh Cuz Phil
Lacy said:


I'm beginning to think that some of these companies see this as a game. To see who can go in and steal a possible lease from another company. A friend of mine talk to a landman the other day about my situation and he seem to get really excited about it. He said he was interested in learning more and possiblely offer more on the signing bonus. He also told her that this is common practice for the company to want to remain anonymous. I just wish I had a way of finding out what the rates are going for in Midland County right now.

Thanks R W ,

I do undersatnd what you are saying and that does make sense.

They are suppose to be sending the lease agreement by fedex, I am wondering though if it will say on it who the company is ?

r w kennedy said:

Lacy, they do exactly that. They lease acres that will be incorporated in a well that someone else drills and pay those acres proportionate share of the costs of the well, become a minority partner in the well. It's good business I think because if you spread ten million dollars over several wells in widely spread areas, you probably won't get wiped out, as you could be if you drilled one well yourself.

Lacy said:

I'm beginning to think that some of these companies see this as a game. To see who can go in and steal a possible lease from another company. A friend of mine talk to a landman the other day about my situation and he seem to get really excited about it. He said he was interested in learning more and possiblely offer more on the signing bonus. He also told her that this is common practice for the company to want to remain anonymous. I just wish I had a way of finding out what the rates are going for in Midland County right now.

Hi Lacy,

Please do not sign anything, period, until you get some professional help. I left you a message. Please read it and respond so I'll know you read it. Have a great evening,

Yours,

Wes

Lacy said:

Thanks R W ,

I do undersatnd what you are saying and that does make sense.

They are suppose to be sending the lease agreement by fedex, I am wondering though if it will say on it who the company is ?

r w kennedy said:

Lacy, they do exactly that. They lease acres that will be incorporated in a well that someone else drills and pay those acres proportionate share of the costs of the well, become a minority partner in the well. It's good business I think because if you spread ten million dollars over several wells in widely spread areas, you probably won't get wiped out, as you could be if you drilled one well yourself.

Lacy said:

I'm beginning to think that some of these companies see this as a game. To see who can go in and steal a possible lease from another company. A friend of mine talk to a landman the other day about my situation and he seem to get really excited about it. He said he was interested in learning more and possiblely offer more on the signing bonus. He also told her that this is common practice for the company to want to remain anonymous. I just wish I had a way of finding out what the rates are going for in Midland County right now.

Thanks Wes and everyone else for trying to help me with this !

I did respond to your email Wes.


Wes Luke said:

Hi Lacy,

Please do not sign anything, period, until you get some professional help. I left you a message. Please read it and respond so I'll know you read it. Have a great evening,

Yours,

Wes

Then tell him you don’t want to do business with him and don’t believe any of his BS.

Lacy, hire a good oil and gas attorney - it won’t cost you that much and in the long run will save you tons of money you will lose from dealing with land-men alone. The oil and gas attorneys in your area will be specialists in just that - oil and gas - and they will know what the going price is.

Hello,

I have had this happen three times and have been able to sort it out each time through diligent research. Once I have presented my findings, the landman has given in. These companies don't want you to know who they are for several reasons. First and foremost, they don't want you to know how deep their pockets are. Secondly they don't want you to know how badly they may need YOUR land to complete a drilling unit / plan. Lastly, they just don't want to have in-house staff dealing with alot of people so mistakes can be limited.

Do your research before signing! Best advise I can give you! Good luck.

Ray: How do you handle a landman when he/she tells you they “cannot” divulge the Company they are representing? This question happens frequently. Any ideas?

Just tell them that if they don’t give the name of the company it will cost them an extra $100 per acre bonus money if that’s the case! Or if they reassign the lease the royalty goes up! Ha! Ha! lol.

I could care less who ends up with the lease as long as I get the bonus/acre, % royalty and lease term that I ask for. In the past, I have been told by the landman who they are working for and a couple of years later, the lease ends up with yet another operator. If Operator X originally obtains the lease and does not hold the majority of the acreage in an area, most likely they will in turn sell their part to the Operator that controls the area.

Hi Lacy,

Do not sign anything. Do not despair. Help is on the way. Please email me at your convenience.

Yours,

Wes

Lacy said:

Thanks Wes and everyone else for trying to help me with this !

I did respond to your email Wes.


Wes Luke said:

Hi Lacy,

Please do not sign anything, period, until you get some professional help. I left you a message. Please read it and respond so I'll know you read it. Have a great evening,

Yours,

Wes

Well, I care. If they don’t divulge who they are working for I am not interested in leasing. I think it is an absolute insult to the mineral owner not to have that transparency and courtesy. There are Operator’s I do not wish to lease too. How would I be able to determine the track record of any Operator or their financial status otherwise? Here is a case in point. I attended an Oil and Gas Seminar last weekend hosted by Allen Gilmer of Drilling Info. They track drilling activity and Operator’s nationwide. His focus was on the EagleFord Shale in this Seminar. He was emphasizing how important it was to know who you are leasing too. He discussed an issue of what Operator’s really know what they are doing with the very complex horizontal drilling techniques and how better to maximize production. He gave an example, noting EOG’s successful performance and their ability to do the research in improving completion engineering practices. The point is he asked the question, would you rather have EOG drilling your mineral property at a 20% royalty or “mom & pop, Inc.” drilling at 25% with sub par production? EOG’s production performance is among the highest in the shale plays. Thus, this is an excellent reason to support disclosure as it impacts the term’s a mineral owner is willing to negotiate. I understand that any entity can assign a lease and this has happened only once to us and it was to a better Operator, in our case.

charles s mallory said:

I could care less who ends up with the lease as long as I get the bonus/acre, % royalty and lease term that I ask for. In the past, I have been told by the landman who they are working for and a couple of years later, the lease ends up with yet another operator. If Operator X originally obtains the lease and does not hold the majority of the acreage in an area, most likely they will in turn sell their part to the Operator that controls the area.

Mike:

My minerals are located in the Williston Basin, both in ND and MT, and in this area, the clock is running on expiration dates on leases activated in or around 2008. So many undrilled acres exist and it is evident that there is no way these operators can drill prior to the expiration date in some cases. What I'm saying, in this event the operator (especially if a majority acreage is not held) will either sell their share to another operator (who has a majortiy hold) or negotiate a new lease at much higher bonus and % royalty amounts. I agree with you on the fact that some operators tend to have better production results than others but when you lease, you have no ultimate control on which operator will end up drilling.

Mike Igau said:

Well, I care. If they don't divulge who they are working for I am not interested in leasing. I think it is an absolute insult to the mineral owner not to have that transparency and courtesy. There are Operator's I do not wish to lease too. How would I be able to determine the track record of any Operator or their financial status otherwise? Here is a case in point. I attended an Oil and Gas Seminar last weekend hosted by Allen Gilmer of Drilling Info. They track drilling activity and Operator's nationwide. His focus was on the EagleFord Shale in this Seminar. He was emphasizing how important it was to know who you are leasing too. He discussed an issue of what Operator's really know what they are doing with the very complex horizontal drilling techniques and how better to maximize production. He gave an example, noting EOG's successful performance and their ability to do the research in improving completion engineering practices. The point is he asked the question, would you rather have EOG drilling your mineral property at a 20% royalty or "mom & pop, Inc." drilling at 25% with sub par production? EOG's production performance is among the highest in the shale plays. Thus, this is an excellent reason to support disclosure as it impacts the term's a mineral owner is willing to negotiate. I understand that any entity can assign a lease and this has happened only once to us and it was to a better Operator, in our case.

charles s mallory said:
I could care less who ends up with the lease as long as I get the bonus/acre, % royalty and lease term that I ask for. In the past, I have been told by the landman who they are working for and a couple of years later, the lease ends up with yet another operator. If Operator X originally obtains the lease and does not hold the majority of the acreage in an area, most likely they will in turn sell their part to the Operator that controls the area.

Charles: This is why I pose the question to get input on why mineral owners don’t challenge the land agents when they will not disclose who they are working for. Another case in point for me on this issue is when I received a call from a land agent wanting to lease a 150 acre tract down on the Gulf Coast (TX). She was reluctant to reveal her client. We had a very polite discussion and I had told her of our policy about disclosure and that we required that information before negotiations could take place. I suggested she contact her client and advise them of our request. Several days later I received a call from her client. It turns out it was a one person operation that was peddling leases. End of story. So why should a mineral owner put themselves in a vulnerable position not knowing who they are dealing with initially in any case?Our ATTY also advises that an “Assignment” clause be put into the mineral lease so the original entity will be required to notify the mineral owners, in writing, of any assignment, in part or whole, to any other entity or Operator.

charles s mallory said:

Mike:

My minerals are located in the Williston Basin, both in ND and MT, and in this area, the clock is running on expiration dates on leases activated in or around 2008. So many undrilled acres exist and it is evident that there is no way these operators can drill prior to the expiration date in some cases. What I'm saying, in this event the operator (especially if a majority acreage is not held) will either sell their share to another operator (who has a majortiy hold) or negotiate a new lease at much higher bonus and % royalty amounts. I agree with you on the fact that some operators tend to have better production results than others but when you lease, you have no ultimate control on which operator will end up drilling.

Mike Igau said:

Well, I care. If they don't divulge who they are working for I am not interested in leasing. I think it is an absolute insult to the mineral owner not to have that transparency and courtesy. There are Operator's I do not wish to lease too. How would I be able to determine the track record of any Operator or their financial status otherwise? Here is a case in point. I attended an Oil and Gas Seminar last weekend hosted by Allen Gilmer of Drilling Info. They track drilling activity and Operator's nationwide. His focus was on the EagleFord Shale in this Seminar. He was emphasizing how important it was to know who you are leasing too. He discussed an issue of what Operator's really know what they are doing with the very complex horizontal drilling techniques and how better to maximize production. He gave an example, noting EOG's successful performance and their ability to do the research in improving completion engineering practices. The point is he asked the question, would you rather have EOG drilling your mineral property at a 20% royalty or "mom & pop, Inc." drilling at 25% with sub par production? EOG's production performance is among the highest in the shale plays. Thus, this is an excellent reason to support disclosure as it impacts the term's a mineral owner is willing to negotiate. I understand that any entity can assign a lease and this has happened only once to us and it was to a better Operator, in our case.

charles s mallory said:
I could care less who ends up with the lease as long as I get the bonus/acre, % royalty and lease term that I ask for. In the past, I have been told by the landman who they are working for and a couple of years later, the lease ends up with yet another operator. If Operator X originally obtains the lease and does not hold the majority of the acreage in an area, most likely they will in turn sell their part to the Operator that controls the area.

Mike:

Good information on the "Assignment Clause" as I have never included this in any of my previous leases. I thought that I had all bases covered with "pugh clauses, etc.". Question: If this clause is violated, is this lease "null and void" and how does this work if Operator A sells to Operator B; Operator A being the original lessee?

Mike Igau said:

Charles: This is why I pose the question to get input on why mineral owners don't challenge the land agents when they will not disclose who they are working for. Another case in point for me on this issue is when I received a call from a land agent wanting to lease a 150 acre tract down on the Gulf Coast (TX). She was reluctant to reveal her client. We had a very polite discussion and I had told her of our policy about disclosure and that we required that information before negotiations could take place. I suggested she contact her client and advise them of our request. Several days later I received a call from her client. It turns out it was a one person operation that was peddling leases. End of story. So why should a mineral owner put themselves in a vulnerable position not knowing who they are dealing with initially in any case?Our ATTY also advises that an "Assignment" clause be put into the mineral lease so the original entity will be required to notify the mineral owners, in writing, of any assignment, in part or whole, to any other entity or Operator.

charles s mallory said:

Mike:

My minerals are located in the Williston Basin, both in ND and MT, and in this area, the clock is running on expiration dates on leases activated in or around 2008. So many undrilled acres exist and it is evident that there is no way these operators can drill prior to the expiration date in some cases. What I'm saying, in this event the operator (especially if a majority acreage is not held) will either sell their share to another operator (who has a majortiy hold) or negotiate a new lease at much higher bonus and % royalty amounts. I agree with you on the fact that some operators tend to have better production results than others but when you lease, you have no ultimate control on which operator will end up drilling.

Mike Igau said:

Well, I care. If they don't divulge who they are working for I am not interested in leasing. I think it is an absolute insult to the mineral owner not to have that transparency and courtesy. There are Operator's I do not wish to lease too. How would I be able to determine the track record of any Operator or their financial status otherwise? Here is a case in point. I attended an Oil and Gas Seminar last weekend hosted by Allen Gilmer of Drilling Info. They track drilling activity and Operator's nationwide. His focus was on the EagleFord Shale in this Seminar. He was emphasizing how important it was to know who you are leasing too. He discussed an issue of what Operator's really know what they are doing with the very complex horizontal drilling techniques and how better to maximize production. He gave an example, noting EOG's successful performance and their ability to do the research in improving completion engineering practices. The point is he asked the question, would you rather have EOG drilling your mineral property at a 20% royalty or "mom & pop, Inc." drilling at 25% with sub par production? EOG's production performance is among the highest in the shale plays. Thus, this is an excellent reason to support disclosure as it impacts the term's a mineral owner is willing to negotiate. I understand that any entity can assign a lease and this has happened only once to us and it was to a better Operator, in our case.

charles s mallory said:
I could care less who ends up with the lease as long as I get the bonus/acre, % royalty and lease term that I ask for. In the past, I have been told by the landman who they are working for and a couple of years later, the lease ends up with yet another operator. If Operator X originally obtains the lease and does not hold the majority of the acreage in an area, most likely they will in turn sell their part to the Operator that controls the area.

Charles: I have taken an excerpt and modified it from an old lease that should address this issue. I am sure these provisons would need to be updated by an O&G ATTY.

Assignment:

"No assignment by Lessee of all or any portion of or interest in this lease shall relieve Lessee, or any assignee of Lessee, of any liability for breach of any covenant, warranty or other obligation of Lessee. Each assignee of all or any portion of the rights of Lessee agrees to be bound by the provisions of this lease to the same extent as if such assignee were an original party to this lease. Notwithstanding any assignment by Lessee of a segregated portion of this lease, default by Lessee or any assignee or subassignee of Lessee in any covenant or condition in this lease shall constitute default as to the entire lease. Lessee shall within thirty (30) days of the assignment of this lease or any part thereof notify Lessor of such assignment and furnish Lessor a true copy of any assignment."

charles s mallory said:

Mike:

Good information on the "Assignment Clause" as I have never included this in any of my previous leases. I thought that I had all bases covered with "pugh clauses, etc.". Question: If this clause is violated, is this lease "null and void" and how does this work if Operator A sells to Operator B; Operator A being the original lessee?

Mike Igau said:

Charles: This is why I pose the question to get input on why mineral owners don't challenge the land agents when they will not disclose who they are working for. Another case in point for me on this issue is when I received a call from a land agent wanting to lease a 150 acre tract down on the Gulf Coast (TX). She was reluctant to reveal her client. We had a very polite discussion and I had told her of our policy about disclosure and that we required that information before negotiations could take place. I suggested she contact her client and advise them of our request. Several days later I received a call from her client. It turns out it was a one person operation that was peddling leases. End of story. So why should a mineral owner put themselves in a vulnerable position not knowing who they are dealing with initially in any case?Our ATTY also advises that an "Assignment" clause be put into the mineral lease so the original entity will be required to notify the mineral owners, in writing, of any assignment, in part or whole, to any other entity or Operator.

charles s mallory said:

Mike:

My minerals are located in the Williston Basin, both in ND and MT, and in this area, the clock is running on expiration dates on leases activated in or around 2008. So many undrilled acres exist and it is evident that there is no way these operators can drill prior to the expiration date in some cases. What I'm saying, in this event the operator (especially if a majority acreage is not held) will either sell their share to another operator (who has a majortiy hold) or negotiate a new lease at much higher bonus and % royalty amounts. I agree with you on the fact that some operators tend to have better production results than others but when you lease, you have no ultimate control on which operator will end up drilling.

Mike Igau said:

Well, I care. If they don't divulge who they are working for I am not interested in leasing. I think it is an absolute insult to the mineral owner not to have that transparency and courtesy. There are Operator's I do not wish to lease too. How would I be able to determine the track record of any Operator or their financial status otherwise? Here is a case in point. I attended an Oil and Gas Seminar last weekend hosted by Allen Gilmer of Drilling Info. They track drilling activity and Operator's nationwide. His focus was on the EagleFord Shale in this Seminar. He was emphasizing how important it was to know who you are leasing too. He discussed an issue of what Operator's really know what they are doing with the very complex horizontal drilling techniques and how better to maximize production. He gave an example, noting EOG's successful performance and their ability to do the research in improving completion engineering practices. The point is he asked the question, would you rather have EOG drilling your mineral property at a 20% royalty or "mom & pop, Inc." drilling at 25% with sub par production? EOG's production performance is among the highest in the shale plays. Thus, this is an excellent reason to support disclosure as it impacts the term's a mineral owner is willing to negotiate. I understand that any entity can assign a lease and this has happened only once to us and it was to a better Operator, in our case.

charles s mallory said:
I could care less who ends up with the lease as long as I get the bonus/acre, % royalty and lease term that I ask for. In the past, I have been told by the landman who they are working for and a couple of years later, the lease ends up with yet another operator. If Operator X originally obtains the lease and does not hold the majority of the acreage in an area, most likely they will in turn sell their part to the Operator that controls the area.