Organizing to negotiate
Organizing your group to negotiate in large numbers was first mentioned to me by - a landman. It seems to me that organizing in large numbers is only benefiting the oil companies. The landman is saved from going door-to-door and the group is brought to him for easy pickings. And then, you get the take it or leave it offer (with a slide percentage, of course.) If you don't take it, the offer is reduced. Now, we know that is not true. If you don't bite, the offer goes up. So we regroup again, and we get another take it or leave it and another slide percentage. I realize there has to be a limit, but it seems the offers with a group organization are no better than if we bargained individually, maybe even worse. I am thinking that we fell right into the lap of the landmen and saved them a lot of time and legwork. Am I wrong?
Views: 60
Replies to This Discussion
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Permalink Reply by RAY on -
wrong, in alot of cases.....I was offered $5500 as a loner. join a group & offered jumped to $11,000.....then to $12,000...prices only sliding upward!
we are still not accepting the low-ball $12,000.
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Permalink Reply by Pat on
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I wouldn't want to do it alone. More property together makes more value. Plus just the amount of time saved by Oil and Gas companies means they get to drilling and paying money sooner.
Go to as many group meeting as you have time for even if not in your area. Knowledge is free.
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Permalink Reply by Kat S8/T18/R15 on
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I have gone to several group meetings. The first they offered 8,750 with a slide percentage. If 90% didn't accept, they told us they would tear up all contracts and we would be back to $5,500. Well, 90% didn't accept, they tore up no contracts, and the remaining group is at $12,500 with another timeline and another slide percentage. I have 4 acres total, in three different sections. One leased, one with the group negotiations, and one not leased. My offers without a group have been as good when done with a group. The best thing about the group I have found is the added knowledge.
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Permalink Reply by Snake Stewart on
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Yes , you are wrong.
The main reason that they told you to get together with others is because that is what was happening anyway.Why are they trying to separate groups with different offers or work in smaller groups. Because thats where they have the largest advantage. The group you went to sounded like a group of Twin City clowns trying to force the sheeple into a straight line for slaughter ! That isn't the group you need to be in. Their are many groups out there that have your interests at heart. Find one and stick with them.Not just until your number comes up either. If you are going to cut out on them you might as well get in line with the sheeple !
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Permalink Reply by CMI A1 on
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In addition, there are always going to be people that will work very hard and others that will not due to various limitations such as physical or mental disabilities, age, etc...
I am a part of the leadership team for our group. We have members that are in our association that are elderly and own only a small amount of land. They don't stand much of a chance out there by themselves against the O & G's. We often talk in our group about how we are getting a joy out of helping some of our elders. They will be getting SOOOO much more than if we left them out to the wolves. The thought of that gives us an extra boost of energy.
Others are just simply unable to achieve a good deal on their own due to many various limitations. I am excited about helping them as well. Many of us are working long hours at our regular jobs and then juggling the association responsibilities as well. A lot of people that never have to lift a finger will reap huge rewards from that, but that's fine. We are happy to do it for them... because they are our friends and neigbors.
If you can join a group and help with the work to achieve success... do it!
If you can only join a group... do that! Their is strength in numbers.
Just join a group or you can read about the benefits later.
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Permalink Reply by Charmine on
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Thanks for the interesting post. I can't really say if you are right or wrong, as I haven't been in this long enough to really know. I'm leaning towards you are wrong, but it also depends on each individual's needs. I personally think that I prefer a group. I don't live in Texas where my minerals are, and all I know about minerals is what I have learned in the last month. I was able to locate my surface rights owner, and several of my relatives (whom I've never met), and I did this pretty much on my own, as the landman most certainly wasn't going to give this info up. We are in agreement to work together still. We all bring something different to the table it seems, and we are figuring out who's niche is who's. My uncle caved almost immediately, which is fine- it was his choice. It IS tempting to cave, and I probably would have if not for the support of the rest of the group. The smartest move I have made in all of this was taking the time to track down my surface owner. He appears to be a savvy, successful business man, with some good o/g connections. He has been more then willing to help my family along in all of this. If we had a big group out of our area, I would most certainly be interested in joining up, or checking out a meeting (if I lived in TX, or could afford to fly in). The more educated we are the better. I would volunteer my time if such group existed. Someone in this post hit the nail right on the head in helping others that aren't in a position to do for themselves....that little old lady down the road that knows nothing about computers, has just as much right to a fair lease as anyone else...she could be any of our mothers!
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Permalink Reply by Outbackman on
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Good post. Many an old lady has been taken advantage off. My grandmother was one of them. Stick together and get what you can you have one chance to get it right.
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Permalink Reply by CouleeJohn on
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Charmine:
I, like you, am an absentee owner (washington state) of minerals in Shelby Co. I have been trying to determine who, if anyone, is actually forming group(s) in/for Shelby. No luck so far. I see you are a quite active poster...have you learned of anyone doing it? An active and effective group would be a real advantage to us all.
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Permalink Reply by Kassi on
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There are many reasons to form a group. One, of course, is the increase in bonus payment but more importantly you have the bargaining power to negotiate environmental and land owner protections that an individual alone may not be able to get. Another byproduct is the sense of community that can develop. I know in my neck of the woods things will never be the same and that is a good thing. The money goes fast but the right protections in a lease can help impact the future as can the bringing together of a community.
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Permalink Reply by dianeh on
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JOINED A GROUP. HAD AN OFFER, GROUP SAID IT WASNT ENOUGH, LOST THE OFFER, NOW THE OIL CO. DOESNT WANT TO TALK. WHATS NEXT? WHERE ELSE DO WE TURN?
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Permalink Reply by Margaret Wren on
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Stay with the group and be patient, there is power in numbers(acres) . Good things come to those who wait.
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