Law on bonuses?
I was told by the landman for camterra who is currently trying to lease in the area that he was "voluntarily" going back to the neigbors that had leased for less money and catching them up to the "going" rate. I hear that there may be a legal requirement for the landman to do this. Can anyone confirm this?
Views: 101
Replies to This Discussion
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Permalink Reply by boo on -
I wished I knew what landman you are dealing with, what exactly do you mean catching them up. the camterra landman i am dealing with is not wanting to pay very much.
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Permalink Reply by Hopeful1 on
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His name is Jeremy Evans. And he is not offering very much either. But we are in the early stages on getting organized in our area. We even have a website now, norrisferryshale.com, but he told me personally that in a "good faith" offer he was going back to the neighbors that had leased earlier for a lower amount on the bonus and paying them the differnce in order to keep everyone happy in the area. To be honest I haven't been very impressed with his business dealings.
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Permalink Reply by Shep Jones on
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There is no statute that requires companies to "catch up" those Lessors who signed for less money or royalty than their neighbor. Each trade made between the individual landowner and the oil company is done on a stand alone basis. In other words, you, as the landowner make the deal that works best for you and your deal has no bearing on the deal that your neighbor makes. Unless, as pointed out by Po Boy, your lease contains a favored nations clause. Should your neighbor be paid more money or royalty by the same company, then they must pay you more money or royalty to equal that which was paid to your neighbor.
It very well could be that because Camterra has other operations planned in this area, there are paying the additional money so as to create goodwill with the landowners in the area.
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Permalink Reply by P.G. on
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Maybe those low ball leases are coming back to bite that company, huh?
Or perhaps just another trick so they can go back to the sucker well for seconds!
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Permalink Reply by JHH on
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landman for what oil company? what was the lease bonus payment and how much does "catch up" mean?
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Thank you for the information- made a phone call & your right they did have a favored
nations clause. There is so much that I am still learning.
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I am in Township 16 Range 13 Section 28 & I am sorry I don't have a copy of that clause. We have not leased yet.
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Permalink Reply by Jack Blake on
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Chesapeake would not agree to a Favored Nations Clause when I leased 20 acres in T 10 N R 11 W a few months back and I heard from a Petrohawk Landman that they won't do the Favored Nations Clause either.
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The only landowners that will get a favored nations clause are the one who have bargaining power i.e. your large landowners. If you are a small lanowner, you most probably will not be given one though it never hurts to ask. Or, if you can convince all of the landowners in your section to lease as a "block" you might be able to get a favored nations clause.
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