DO NOT PAY ANYONE TO DO WHAT YOU CAN DO YOURSELF FOR FREE!!!
My comments have been misinterpreted by one individual (or more). So my message does not get lost, please consider the following: I am an attorney, but I am not giving you LEGAL advice. I will not represent anyone so please don't ask. I am simply giving my PERSONAL opinion as the 1st amendment to the U.S. Constitution allows me to do.
I am tired of seeing new sites pop up offering to negotiate, draft, advise, etc., folks on their mineral rights, leases, and tax implications. YOU PROBABLY DO NOT NEED TO PAY ANYONE TO HANDLE YOUR MINERAL LEASING ISSUES unless you are a large landowner, complicated title to land issues, or other "unusual" facts are at issue. People don't hire attorneys to negotiate the terms of their mortgages, or credit card agreements, or car leases. There are many complicated legal documents we all sign often without the benefit of an attorney's counsel. There are numerous sites "popping up" which provide accurate information about mineral leasing and mineral rights. It will take some time, but if you read the materials, you probably can grasp the issues relevant to your situation. If you don't feel comfortable after "educating" yourself in the area of LA mineral law and leasing, then seek advice of counsel. If you work long hours and then have kids at home and other obligations that make research impossible, then perhaps an attorney should be consulted.
HOWEVER, BEFORE HIRING AN ATTORNE, CONSIDER JOINING A "NEIGHBORHOOD ASSOCIATION!" I, for example, belong to NorthPark Estates Neighborhood Association. We are landowners who are taking our collective knowledge and expertise and helping each other free of charge to the members. If the association has knowledgeable members, then you don't need to hire an attorney. Just about every neighborhood in Shreveport and Bossier has formed an "association." If you have this option, it doesn't make financial sense to pay for services that you can obtain for free through your "association."
If you must pay someone to handle your mineral lease negotiations, don't pay 2-4%. In my opinion, such a fee is unreasonable. You should pay NO MORE THAN 1%, especially if there is a large group retaining the services of an expert. If you can't get your expert to accept a 1% fee, go to the next person until you find someone who will.
Let me make myself even more clear, if there are complicated legal issues involved, like trusts, you should consider an attorney. If you find yourself in litigation, you definitely need to hire an attorney. If you have a 1/3, 1/2 or 1/4 of an acre, then the costs of an attorney and CPA may be cost prohibitive.
I am tired of seeing new sites pop up offering to negotiate, draft, advise, etc., folks on their mineral rights, leases, and tax implications. YOU PROBABLY DO NOT NEED TO PAY ANYONE TO HANDLE YOUR MINERAL LEASING ISSUES unless you are a large landowner, complicated title to land issues, or other "unusual" facts are at issue. People don't hire attorneys to negotiate the terms of their mortgages, or credit card agreements, or car leases. There are many complicated legal documents we all sign often without the benefit of an attorney's counsel. There are numerous sites "popping up" which provide accurate information about mineral leasing and mineral rights. It will take some time, but if you read the materials, you probably can grasp the issues relevant to your situation. If you don't feel comfortable after "educating" yourself in the area of LA mineral law and leasing, then seek advice of counsel. If you work long hours and then have kids at home and other obligations that make research impossible, then perhaps an attorney should be consulted.
HOWEVER, BEFORE HIRING AN ATTORNE, CONSIDER JOINING A "NEIGHBORHOOD ASSOCIATION!" I, for example, belong to NorthPark Estates Neighborhood Association. We are landowners who are taking our collective knowledge and expertise and helping each other free of charge to the members. If the association has knowledgeable members, then you don't need to hire an attorney. Just about every neighborhood in Shreveport and Bossier has formed an "association." If you have this option, it doesn't make financial sense to pay for services that you can obtain for free through your "association."
If you must pay someone to handle your mineral lease negotiations, don't pay 2-4%. In my opinion, such a fee is unreasonable. You should pay NO MORE THAN 1%, especially if there is a large group retaining the services of an expert. If you can't get your expert to accept a 1% fee, go to the next person until you find someone who will.
Let me make myself even more clear, if there are complicated legal issues involved, like trusts, you should consider an attorney. If you find yourself in litigation, you definitely need to hire an attorney. If you have a 1/3, 1/2 or 1/4 of an acre, then the costs of an attorney and CPA may be cost prohibitive.
Views: 234
Replies to This Discussion
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Permalink Reply by Pat on
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You shouldn't pay 1%. Pay a reasonable hourly rate if you have to pay anything at all. Chances are if you join the right group in your neighborhood there is an attorney in that group that has a vested interest in getting the best lease anyway. Paying an ongoing percentage of royalty for something that they did on one contract shouldn't even be allowed by the bar association IMHO.
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Permalink Reply by Jaybird on
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I agree in the end of your own personal research, you should by all means, hire a Oil and Gas attorney to look over your lease and give you his/her advice before signing on the dotted line. I should have said that in the post above at the end of my statement.
Jaybird
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Permalink Reply by Bobi Carr ("parker") on -
I couldn't agree more.
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Permalink Reply by W T Visconte on
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That applies to litigation. People sign leases on apartments all the time, leases on cars, etc. If you have a claim that needs to go to court, THEN YOU DEFINITELY SHOULD GET AN ATTORNEY TO REPRESENT YOU. I was talking about the issue of mineral leasing, and only mineral leasing! There are enough sites, discussion board, and decent sources of information of mineral leasing rights that I think the "average joe" can understand the issues of mineral leasing with a little research and gumption.
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Permalink Reply by smith1 on
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I couldn't agree more, we just signed our lease with HK and had our attorney, a very reputable attorney here in Shreveport; very knowlegable, charged an reasonable hourly fee, very helpful. Never once did he mention anything about wanting % of bonus! There are reputable attorneys out there and believe me, you DO need one in negotiating these leases. We had a wealth of info ourself, but still needed his "expertise'. If you don't get an attorney to finalize, you are not being very smart, to say the least.
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You should share the name of that attorney. You will be doing him, and the folks who want to consult with an attorney, a huge service.
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Permalink Reply by smith1 on
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You should share the name of that attorney. You will be doing him, and the folks who want to consult with an attorney, a huge service.
The attorney that I used was - John Frazier, (318) 226-9100
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Permalink Reply by Iris on
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I have other comments on this site about a John Frazier, hope it's same one...a John Frazier I knew handled several negotiations for our family over a period of yrs (land related) never actually met him...seems to be ethical & informative (the one we used)
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Pat gets it. There is probably an attorney in your neighborhood association that can help the group because the attorney has the same vested interest.
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Permalink Reply by Cillian on
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Of course I am smart enough to know that experts aren't made overnight. I would never be so self delusional to believe that a few months worth of SHALE knowledge have given me the knowledge to represent someone else.
If you have something to offer and you are not an attorney (charge by the hour). And be careful that you are not advising your clients on the law. It is illegal to practice law in the state of Louisiana without a law degree (even if you have an RN degree). Consult all you want but a lower % than the people that have been around doesn't make someone any different than the GEO's and CPA's and EX-LANDMEN that are doing the same thing.
Thank you, thank you, thank you, THANK YOU! for pointing this out!! I don't care how many hours you've logged online, sheafs of paper you've printed out or lease templates you've stolen from real , legitimate consultants/attorneys, or how much you thinkyou know about mineral rights leasing and contracts, the fact is, you DON'T, and if you do this, you're only asking for trouble down the road, for yourself and others.
I am not an attorney either, by the way.
But I do know that there a truckload of ways you can screw up a lease or miss something that a real attorney would not. So if anybody out there reading this who has gotten all learned up on the Haynesville Shale and has the ego to actually think they can do this and for compensation, no less! it's time for a reality check.
And anybody fool enough to allow someone so unqualified to negotiate their leases might just deserve what they get.
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Permalink Reply by TRG on
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I agree, why would anyone want to be represented by someone who has NO experience in the Oil and Gas business other than "they have done a lot of research." I can read all the books I want on brain surgery but I hope no one asks me to operate on them.
I do think there are legitimate negotiators out there, people who have worked in the Oil and Gas Industry for quite some time and have a background in lease negotiations as well as relationships with Oil & Gas companies.
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Permalink Reply by LP on
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I know of one local lawyer who's negotiating fee is either one of these two choices:
50% of bonus over $20,000
or
5% of total bonus
He requires the landowner to chose one or the other fee prior to his negotiating and sign an agreement.
From what I can tell, his area of practice up until April of this year has been primarily personal injury and bankruptcy.
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