I am in the process of leasing to 1334 Haynesville Leasing & Minerals in 16-16-26. I have researched this company myself but wondered if anyone had any other info to add. Also, are there any new provisions that should be included in a lease signed currently?
Yes, you can consider that confirmed by someone with direct knowledge. Sorry, I don't check my personal emails often and just saw the replies. Billy is not my real name. I just prefer that my real name is not out there so I can inform on this site without it coming back on me at my job.
The only reason I posted here today was to clarify for the landowner with the original post to make a better informed decision. They are not an operator and thus the decision to lease to them is not as simple as it is to lease to an operator.
Agreed. And understood. Thanks, Bill.
Thanks to everyone here for the insight and information. Have a good nite!
We leased several hundred acres to 1334 Haynesville Leasing & Minerals after they stated they were working with an Operator,about six months later they 'sold' the lease to another company while maintaining a percentage of all future Royalties. They did not make a lot off of the sale, however the percentage, when coupled with a load of other such leases, it make a pretty substantial annual nest egg for them once producing.
Personally, I would not lease to them again, nor would I recommend that others lease to them.
Contract land companies commonly attempt to get a royalty interest in their leases even when they are working for a client. The client has a bottom line net royalty interest that they require and any leases at less than that means a royalty interest for the land company.
Now if the "other"company is an "operating" company, it is quite possible that 1334 is their contract land company. In that case if a mineral owner had a reasonable size tract, they might get the best offer equal to the max royalty acceptable to the client when it comes time to drill by waiting. No guaranties, there never are.
If not, then the 1334 client is an "investor" (speculator, flipper, etc. whatever you care to call them). None of this is illegal or unethical. It is up to the mineral owner to take all this into account, ask questions, sometimes demand answers and perform their due diligence.
The bottom line is that mineral owners who do not seek professional assistance may never have all the information possible to make an informed decision. Sometimes is as simple as going to the best, experienced O&G attorney and finding out that the firm has helped negotiate other leases in the same area with the same company and knows what the best terms are that have been proven acceptable. That might cost a few hundred dollars but the potential benefits can be significant.
Threads like this is why I keep reading GHS. There is no other place on the Net where you can find good, balanced info on leasing in our area. Many thanks to Keith, Jay, Skip and everyone else here.
(yes, I'm still Hopeful About Natural Gas)
Hope you had an enjoyable Thanksgiving holiday, HANG.
Good to see you are still here, hope you had a good Thanksgiving too!