Replies to This Discussion

Permalink Reply by Grillin' - MmmMmm on September 17, 2008 at 3:21

Sorry if my reply was smug. I guess 4 days without power makes one a bit snippy. Probably just in la la land getting connection to outside world!!

Here's the deal: I hope everyone gets everything they can for their land; on the other side, I and every other oil/gas company, will try and lease that land for as little as we can possibly get away with. That's the nature of a negotiation. At some point, we either reach agreement, I get out-bid by someone else, or we both walk away. I don't feel like I'm cheating anyone if I can get the lease for $200, but then I'm going to pay them a nice 20-25% royalty on everything we produce. Someone made a comment about me "sleeping at night after cheating them". I just don't see this as cheating them (even if it is said in ALL CAPS ;-) ). If they say "no", then I offer more or I leave. My company has a limit and we stopped the HS when the price got too high, well south of $15,000/acre. We have lots of HBP acreage to drill without paying bonuses and these will probably carry a 12.5% royalty...this is much more profitable!

My bigger worry, and it should be for all landowners in HS, is the drop in NG prices. HS wells have a relatively high "economic threshhold". As gas prices drop, you will see a large decline in drilling. All of these 640-acre units will have one well drilled and the remaining infill wells will be put on hold since the unit will be held by production. This isn't good for either party, landowner or OG company. Keep watching prices...a drop below $7 will start the dominoes. Below $6 and I think you see lots of production shut in and drilling curtailed.

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Permalink Reply by Grillin' - MmmMmm on September 17, 2008 at 14:44

Agree Jim. I do think they will eventually get these leases done, but at much less than $25,000/acre. And it will be next year, at least. If you are holding out for the big dollars, good luck. You may get it. But there is a risk that it will be a while before they start leasing big quantities again because they have so much under lease already. The small companies aren't going to pay those big big bucks. The big big companies, maybe. Or they'll just do what BP did and buy a part of CHK's interest or they may just buy whole companies!

Permalink Reply by Antsu-in-Japan on September 17, 2008 at 9:36

Well said, KB! Those who came a'calling on my father last year didn't even have the moral compass to mention the words 'natural gas' in the same sentence as "...we'd like to buy your land." My father was going to sell until that person got impatient and starting calling 4 to 5 times a day. Luckily, pop smelled a rat...my uncle did not and yes, he bitterly regrets his decision to sign at $200/acre. But oh well... that's the beauty and stench of US law.

No, withholding information so that you will have the advantage over someone may not (in some circumstances) be illegal...but it is definitely immoral. So, for those of you who want to try and even the playing field, I'd say file your suits. Get a tiger of a public relations team together and load up the TV crews to show the world, once again, your version of how the mighty O&G giants are 'taking advantage' of the average Joe.

We all know how quickly roaches scramble when the lights are suddenly turned on. Well, TURN THEM ON folks!! It's truly amazing how much public opinion matters to most companies. Stay blessed...and good luck!

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Permalink Reply by Grillin' - MmmMmm on September 17, 2008 at 14:40

As long as the companies are complying with the law, I'm with them. When the fail to comply, then I'm on the other side. The law, I believe, has a certain amount of time where the well results are held "confidential" or "tight". These results aren't made public until that time period runs out. This period varies from state to state. I do know of a company or two that withheld information beyond that time. They were fined by the Conservation dept. but its pennies on the dollar. That might give a person an edge or angle in a lawsuit.

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Permalink Reply by gassius clay on September 17, 2008 at 2:30

THANKS GATRPAW. IT WAS A SIMPLE QUESTION ON A FORUM. I CAN PICTURE SOME OF THESE "JAIL HOUSE LAWYERS" POUNCING ON PEOPLES POST WHO ARE NOT O/G PROFESSIONALS AT 1 IN THE MORNING. OUR FRIEND MMMMAARKKK GIVES THE SAME SMUG ANSWER THAT A CONTRACT IS A CONTRACT.... AND EVEN ADMITS TO BEING A PROSPECTOR/LOW-BALLER. iTS PEOPLE LIKE HIM THAT COME INTO YOUR HOME WITH THEIR CONTRACTS, SMILE AND SAY HI TO YOUR KIDS, DRINK YOUR TEA, THEN KNOWINGLY TAKE YOU FOR THOUSANDS OF DOLLARS. IVE LEARNED IN MY LIFE THERE ARE TWO WAYS TO GET RICH. 1. HARD WORK AND SAVING OVER TIME AND 2. CHEATING SOMEONE ELSE OUT OF THEIR WEALTH. MMMAARRKK YOU'VE MADE YOUR CHOICE AND WHATEVER YOU TELL YOURSELF TO BE ABLE TO SLEEP AT NIGHT MUST NOT BE WORKING MY FRIEND. iM GOING TO GO NOW, IVE GOT A LIFETIME OF REWARDS FROM DOING THINGS THE RIGHT WAY TO ENJOY. I WANT BE BACK ON THIS SITE SO FEEL FREE TO RIP ME TO SHREADS, TOOTLES!

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Permalink Reply by Bill G on September 17, 2008 at 2:35

You people don't run Gatrpaw off...he is one of the only people left on this site with Credible answers that I enjoy reading....I don't even discuss on this main forum...its like a competition on here...everyone trying to over do or strut there expertise over someone else.....You want to debate Meet me in POLITICS GROUP...Will go all day long! (if your a Democrat that is)

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Permalink Reply by Checkmateking on September 17, 2008 at 3:07

Gatorpaw is one of my main men, would never wanna do that.

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Permalink Reply by Tom Bennett on September 17, 2008 at 6:32

First let me say Gatrpaw is a trusted and knowledgeable person I have grown to listen to. I trust his judgement and his opinion.

I do see how an oil company could never go back and say oh sorry I didn't give you enough money. WHERE WOULD IT STOP? I can also see where they could be settled out court on a case by case basis if in litigation.

THAT'S WHAT MAKES GO HAYNESVILLE SOOOOO VALUABLE. THERE ARE MORE THAN 7,000 PEOPLE COMMUNICATING WITH EACH OTHER AND IT ALL STARTS WITH COMMUNICATING WITH EACH OTHER. Think what each of us has learned on this site. Think of all the valuable information we have gained and shared.

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Permalink Reply by P.G. on September 17, 2008 at 6:45

Seems like if everyone in a section could get together (both leased and unleased) and if there were enough unleased land in that section, those folks could wield some kind of negotiating power if the OG really wanted to drill in that section. Looks like groups now are only focusing on the unleased. Who cares about those who leased cheap because of lack of information? Not the unleased people's problem, right?
I would imagine though someday there may be a need for everyone in a section to come to a meeting of the minds on an issue. Meaning maybe everyone should be looking out for his neighbor rather than just what's in front of them individually, huh?

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Permalink Reply by Grillin' - MmmMmm on September 17, 2008 at 14:50

Or what if the folks that leased for big bonuses shared some of that money with the folks that didn't get as much? That would make the average for everyone pretty high. I don't like this idea (it sounds like something out of a left wing or moderate political class play book) but it would be another way to ease the hurt for those who leased early.

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Permalink Reply by P.G. on September 18, 2008 at 2:55

I wouldn't worry about something like that happening if you are an OG man!
Folk's greed would cause something like that to fall apart fast.
Probably wouldn't take much greasing to get some folks to jump ship!

Same likely goes with our local politicians!

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Permalink Reply by insomniacnla on September 17, 2008 at 7:45

One of the reasons that I asked Chesapeake was because at the first City of Shreveport meeting, I think that it was either Mr. Glover or Mr. Dark (Kassi will know she was on the panel), made a statement that their administration had been speaking to one of the major companies involved in leasing the Haynesville. He said that the o/g company (which he could not name at that time) was going to pay additional funds and augment the signing bonus to landowners that had already signed for a few hundred dollars per acre.

Another reason that I asked and tried to pressure the o/g company was because it was for family and I said I would at least try.

I do notice that when landowners try to use pressure in our negotiations with the o/g companies, we are called complainers and whiners but when the o/g companies use pressure to sign the landowers, they call it fair business tactics.

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