BS. NO, Blanchard Shale. Yes, that's better. Your group website newsletter if pretty good. I've reviewed it in the past. However, the large amount of acreage would indicate that the properties lie in numerous sections. That can be a problem. Most of us homeowners tend to think in terms of "neighborhoods". The O&G companies that we may wish to negotiate with do not. I suggest the formation of sub-groups by section. Also, in order to be nimble and capable of reacting quickly and from of position of strength, all property owners within each "Section Group" should build their own mineral file and consider potential complications such as the "subordination" issue that just caused problems for the Greenwood group. Each Section Group must be authorized to act independently or in concert with one or more Section Groups. There are additional considerations such as the percentage of acres within any given section that is represented by a SG. If it's 25%, then no operator can qualify to unitize that section without the SG being under lease. An operator must control 75%. As a matter of business practice, I am unaware of any operator with 75+% that would consider the expenditure required to apply for and develop a section without control of at least 90+%. The math just doesn't work. Do not let the threat of "forced pool" intimidate your SG's. The regulation is more intended to force multiple E&P and/or land companies to work together to develop the minerals within a section than it is intended to force individual property owners to do so. Although the regulation can be used to force pool landowners, operators MUCH prefer to have them leased. If a group of private land owners represented even 4 to 8% of a drilling unit, their decision to go unleased and receive 100% of their royalty after well payout, would probably lead an operator to reconsider spending their development dollars in that drilling unit. If a group is organized and committed, they can usually holdout longer than the operator can. Remember that the operator's leasehold investment is not being returned and their lease terms are moving toward termination. Finally, this is business and emotions rarely accomplish anything constructive. Good Luck, Skip
I was about to join Kassi Fitzgerald,she has a consulting firm,but this group"North Park Estates" is closer to home. I received this reply from her.
"Yes I am forming a consulting company. I would be happy to give some tips on organizing your group etc. regardless of if you hire me or not though. "
she has vast knowledge & experince in this shale business....would you mind contacting her.? her member name is Kassi.
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As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More