Land owners beware! This should be illegal.

"To keep royalties low, companies sometimes set up subsidiaries or limited partnerships to which they sell oil and gas at reduced prices, only to recoup the full value of the resources when their subsidiaries resell it. Royalty payments are usually based on the initial transaction."

I've read about this above issue before along with some others but this is just outright theft. We need our states to protect land owners from this. Land owners getting screwed doesn't help future development or economic development. Operators and land owners need to act with ethics for a win/win situation at all times. If they can't, then our elected officials are going to have to act. 

 

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Permalink Reply by Keith on August 16, 2013 at 11:16

I didn't go that far! I was kind of worried I was bothering him.

 

Permalink Reply by Glenn Kadison on August 16, 2013 at 11:56

I am afraid being a landowner and having leased minerals do not make a big enough aggrieved class to matter with the public. The public care about rates and prices, issues which touch them directly, from their perspective. Though there is a connection, try making it with them. It will not fly. One having property and getting stiffed by an oil and gas company on royalty checks once bragged about falls into the whiny assed neighbor or pain in the tail extended relative category. 80% do not give a hoot and 20% are glad you are getting screwed.If anything, the whole concept of private ownership of the commodity would be called into question if one raises the issue.

I doubt very seriously if people are on social media they will have much desire to buy torches and pitchforks for us who were foolish enough to trust an oil and gas operator and start to sling mud. I do not think elected officials will get off the dime, either.  

Permalink Reply by Keith on August 16, 2013 at 12:11

I think your giving people too much credit Glenn. IMHO they don't pay close enough attention most of the time to get past the sound bite. "Oil company cheats oil lady" and that's it.

Other than that what I'm saying you wake up landowners prior to them signing leases, so they can prepare for what might happen. If there is a competition where a historically good player and a notoriously bad player want your lease, you need to be prepared and know who is who.

Now in the chance that there is a future politician in a rural area that would want contributions from large and small landowners in his district this may be an issue that could resonate.

 

Permalink Reply by Glenn Kadison on August 16, 2013 at 12:18

Yes, agreed. Landowners need to be prepared and know there is an advantage to being unleased and very aware. They should also know that regardless of the initial operator's sterling reputation, all too often the assignment goes to one lurking snake.

 

Permalink Reply by Hopeful About Natural Gas on August 16, 2013 at 12:59

Keith, It's hard to get landowners to listen to reason in the heat of the moment - and when the company threatens to take the lease off the table if you don't sign "right this moment". I signed in the summer of 2008 - but things were vastly different then. I came on GHS only after I had signed a lease. LOL!

I did not get the best lease but I did not get the worse either. It's those extra monthly costs that bother me - but I don't lose sleep over them. Those costs did not appear in the 1st year or so - only as the price dropped and the economy worsened. But, I am under no illusions that as prices go up the company will give me back more. I am still glad I leased when I did.

and, I agree with Glenn - most people are not going to care about this unless we can find a lot of Keith's Grenada vets!!! That was a hoot but I was thinking more like a Cassie Fitzgerald (was that her name?)

However, this can get out of hand - look at how crazy this fracking opponent goes off on the filmmaker of the pro-fracking movie FrackNation (was that the name?) This is how crazy it can get. I don't like this tactic - bullying - but you can see how it can be effective.

https://www.youtube.com/watch?v=htw_Vx2WH-I

Permalink Reply by Keith on August 16, 2013 at 13:20

I thought about threatening to go anti frack on there arse if I ever have to, although I've fracked a few wells myself, oops!

To me it's about getting the result that is best for my family.

I remember people in the Barnette that were not getting leased saying they were against the drilling and that they couldn't breath, but the person across the street that got leased was healthy as could be and loving life.

I have no problem using various tactics in order to achieve my goal. Now I'll also hold back so I don't kill the goose that laid the golden egg too. It's difficult sometimes!

Guerrilla warfare is a form of irregular warfare in which a small group of combatants such as armed civilians (or "irregulars") use military tactics including ambushes, sabotage, raids, petty warfare, the element of surprise, and extraordinary mobility to dominate a larger and less-mobile traditional army, or strike a vulnerable target, and withdraw almost immediately.

Permalink Reply by Two Dogs, Pirate on August 16, 2013 at 13:38

These type freaks come to some courthouses and hassel the folks that are trying to work. I have run up on several of them and all they can do is say the same thing over and over again with not an original thought coming from their pea sized brains.

Permalink Reply by Henry on August 16, 2013 at 23:40

Yes, Louisiana needs laws that might be more generous to forming a class for a class action suit.  But Louisiana might also be better if it allowed punitive damages in law suits.  Right now, anyone operator can screw you.  When/If you go to court, all you can get back is what they owe you.  So there is no real penalty to the bad guy for screwing you.  If the law allowed for the collection of punitive damages, then maybe the rogue operators would behave better if this threat were hanging over them.

Permalink Reply by J B Nabors on August 19, 2013 at 8:24
Boy isn't that the truth. Big oil can cheat you. Unless you go to court.. And win... And win the appeal.. And all you get if you do win is the royalty they cheated you out of in the beginning! (Less your attorney fees)
Permalink Reply by Skip Peel - Mineral Consultant on August 16, 2013 at 13:26

Keith, since you have fracked a few wells yourself, you can probably appreciate this:

https://www.youtube.com/watch?v=mUNBwqovI9U

Permalink Reply by Keith on August 16, 2013 at 13:28

 I have low band width where I'm at now, I'll check it later! thanks!

Permalink Reply by Hopeful About Natural Gas on August 17, 2013 at 22:11

Here is a good video from the FrackNation folks (pro-gas) They are zeroing in on if Josh Fox ever actually got a gas lease to turn down as he claims.

I'd really like to know but its probably too late to do any good - like the exploding water faucets, it's already a part of the cultural anti-fracking mythology that Gasland has created. Check out this NEW video - just posted on Aug 14, 2013.

I never doubted before seeing this that Fox was offered a lease of some sort by some company. But, now I am not so sure. The FrackNation filmmaker shows some curious typos on Fox's lease that are also on a neighbor's lease! An interviewer asks Fox about it but he wants to go "off the record for a minute". Interesting. His turning down of a lease was a key point of his backstory.

https://www.youtube.com/watch?v=M9gMOJpyYzo

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